Diwali, the festival of lights, brings investors a special window to invest in the stock market – Diwali Muhurat Trading. This auspicious occasion holds immense significance in India, especially for the trading community. Scheduled during the Diwali festival, Muhurat Trading marks the beginning of the Hindu accounting year and is believed to bring prosperity and wealth. In 2024, this tradition continues to hold its cultural and economic significance, drawing traders and investors together for a brief but highly anticipated session.
Date and Time of Diwali Muhurat Trading 2024
This year, Diwali Muhurat Trading comes on November 1, 2024. Both BSE and NSE have confirmed this trading window. It’s a short but vital window for making symbolic trades and seeking blessings for the year ahead.
Muhurat Trading Timing 2024
| Event | Time |
| Pre-Opening Session | 5:45 PM – 6:00 PM |
| Muhurat Trading | 6:00 PM – 7:00 PM |
| Closing Session | 7:10 PM – 7:20 PM |
What happens during Muhurat Trading?
Muhurat Trading is a special, one-hour trading session held on the auspicious occasion of Diwali, where investors gather to buy and sell stocks to mark the beginning of a new financial journey. The event holds cultural value, as it is believed that making investments during this time brings prosperity and good fortune. Unlike regular trading sessions, Muhurat Trading is more symbolic, with many investors participating to honour their tradition. The trading session typically occurs in the evening, with specific timing announced by the stock exchanges in advance.
During Muhurat Trading, the stock market experiences high volatility and investors participate in buying and selling equities, bonds, and derivatives. Trading volumes may spike as people look to make their “first” trade of the Hindu New Year, hoping for positive returns. Market analysts and seasoned investors may share advice on stocks to buy during this session, which are often more symbolic purchases. Overall, the session represents a blend of cultural reverence and financial decision-making.
Importance of Muhurat Trading in Diwali
The word ‘Muhurat’ signifies an auspicious time, and Muhurat Trading is considered highly auspicious for traders and investors. It’s believed that investments made during this time carry the blessings of the Goddess of Wealth, Lakshmi, bringing good fortune and prosperity to the investors. Traders often engage in symbolic trades, buying stocks or making investments, aiming to kickstart the year positively.
Traditions and Practices of Muhurat Trading
For over 50 years, Muhurat Trading has been a customary practice on Indian stock exchanges, symbolising the beginning of a new financial year with the blessings of prosperity and wealth. This unique session is rooted in India’s cultural heritage and aligns with the auspicious occasion of Diwali, a festival known for new beginnings and worship of wealth.
Muhurat Trading was first initiated by the Bombay Stock Exchange (BSE) in 1957, marking a new tradition of trading during Diwali to attract both seasoned investors and newcomers to the market. In 1992, the National Stock Exchange (NSE) joined this tradition, giving the event even greater significance in India’s financial landscape. The one-hour trading window is typically scheduled in the evening, and it attracts participation from across the country. Investors see it as a favourable time to make investments, with many believing that trades made during Muhurat Trading will bring good fortune and financial growth in the coming year.
Today, this special trading session is an integral part of Diwali celebrations, blending the ritual of worship with the practical aspects of investment, symbolising the harmony between tradition and the modern financial world.
Market Expectations
While the actual trading window during Muhurat Trading is brief (1 Hour), the market often experiences significant volatility due to the high volume of trades within this condensed time frame. Investors and traders approach this session with optimism, believing that beginning the new financial year with a trade on Muhurat Trading will attract prosperity. This enthusiasm contributes to higher-than-usual market activity, with sentiments generally skewed positively, as investors look forward to a rewarding year.
The anticipation of a bullish trend is common, as many traders make symbolic investments, hoping to set a positive tone for future trades. This collective sentiment can lead to temporary price surges in certain stocks, particularly those that are popular among retail investors. Muhurat Trading is not just about profits—it’s an expression of faith in future growth, and for many, a way of honouring both tradition and their commitment to the stock market.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.
Frequently Asked Questions
Can NRIs participate in Muhurat Trading?
Yes, Non-Resident Indians (NRIs) can participate in Muhurat Trading, just like regular trading sessions. NRIs can buy and sell shares during this period if they have an NRI trading account with a registered Indian stockbroker and a Portfolio Investment Scheme (PIS) account, as per RBI regulations.
Can NRIs invest in derivatives during Muhurat Trading?
Yes, NRIs are allowed to trade in derivatives during Muhurat Trading, but they must comply with the margin and regulatory requirements applicable to NRI investors.
Is Muhurat Trading profitable for NRIs?
Muhurat Trading is largely symbolic and rooted in tradition, with many investors participating for its auspiciousness rather than focusing solely on profits. While stocks may see higher volatility during this session, it is important for NRIs to make informed decisions based on their financial goals.
