The stock markets in India celebrate Diwali with a special trading session known as “Muhurat Trading,” symbolizing the start of the new Hindu Samvat year—in this case, Samvat 2081. This tradition, observed on Diwali evening, is an hour-long session during which many investors and traders make symbolic investments, believed to usher in prosperity and financial growth for the coming year.
Date and Timing of Muhurat Trading
For Diwali 2024, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have scheduled the Muhurat Trading session on Friday, November 1, even though many parts of India celebrate Diwali on October 31. The decision accounts for regional variations in Diwali observance. The pre-opening session will begin at 5:45 p.m., lasting 15 minutes, followed by the main trading window from 6:00 p.m. to 7:00 p.m.
During this session, markets remain closed for regular trading, opening only for the auspicious hour. Participants in the market take this time to place buy orders, making the occasion not only a financial activity but also a cultural one, steeped in tradition.
Historical Performance and Market Sentiment
Historically, Muhurat Trading sessions have often seen positive gains, albeit minor. For instance, the indices showed increases of around 1% in 2022, 0.5% in 2021, and 0.47% in 2020, demonstrating an overall trend toward market optimism. The session on October 28, 2008, during the global financial crisis, stands out as the highest gain recorded for Muhurat Trading, with an index surge of almost 6%.
This special session is driven more by sentiment and tradition than by economic fundamentals, with investors viewing it as a time to reinforce optimistic outlooks for the year ahead. Market experts generally advise caution, reminding participants that Muhurat Trading’s one-hour window can be highly volatile and should be approached as a symbolic gesture rather than a typical trading session.
The Significance and Traditions of Muhurat Trading
Muhurat Trading has its roots in the belief that the “muhurat,” or auspicious hour, is an ideal time to begin new ventures. Investors consider it a time to acquire shares with the hope that these purchases will bring financial prosperity throughout the new Samvat year. Many buy and hold stocks from this session as a form of good luck, often passing these shares down through generations as symbols of prosperity.
Traditionally, investors focus on value stocks for the long term during this session. The practice highlights a unique blend of financial and cultural values, as investors see the day as an opportunity to set intentions for the future while participating in a market ritual. While this short session doesn’t emphasize profit, it fosters a positive sentiment and an upward market trend, with most investors opting to buy rather than sell.
Why Muhurat Trading Holds Special Meaning
Muhurat Trading is more than just a session on the stock exchange; it is a moment where tradition and modern finance intersect. Investors from all backgrounds join in to honor the new Samvat, reinforcing the role of financial growth in the year’s personal and community prosperity. As they place their trades, participants embrace the belief that this investment is an auspicious start, setting the tone for a hopeful and prosperous year ahead.
Also Read: PM Modi’s Diwali Tribute: IAF Flypast & Floral Offerings To Sardar Patel In Gujarat
