22 October,2024 02:15 PM IST | Mumbai | Anisha Shrivastava
Representational Pic
The stock exchanges in India, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), are gearing up for their annual Diwali muhurat trading session on Friday, November 1, 2024. This special trading window will be open from 6:00 PM to 7:00 PM, marking the beginning of the Hindu calendar year, Samvat 2081, a time when traders and investors look forward to new opportunities and growth.
Diwali muhurat trading is a time-honoured tradition among Indian traders, held every year on Diwali to usher in a new financial year. This year, it coincides with Laxmi Pujan, a time when worshippers seek blessings from Goddess Lakshmi, the deity of wealth and prosperity. The belief is that trading during this auspicious hour can lead to financial growth and success throughout the year. While the regular markets will remain closed, this one-hour session is viewed as a significant opportunity for traders to engage in stock investments.
The term "muhurat" refers to a specific moment considered highly auspicious based on Hindu astrology. It signifies a time when the planets align favourably, believed to enhance the chances of success in financial endeavours.
ALSO READ
Hyundai Motor India shares drop 3% after underwhelming stock market debut
Hyundai Motor India shares make muted market debut, listing over 1% lower
Rupee stays flat at 84.07 against US dollar; equity gains offset by FII outflows
Markets rebound in early trade as blue-chip stocks attract buying
Nifty, Sensex open flat, Experts expect Diwali festivities to boost markets
This year, the special trading session will run from 6:00 PM to 7:00 PM. However, before this main trading window opens, there will be a 15-minute pre-opening session starting at 5:45 PM. This allows traders to prepare for the upcoming session and set their strategies. After the main trading period, there will also be a brief closing session from 7:10 PM to 7:20 PM.
It's important to be mindful of the trading dynamics during this brief window. Due to the limited time available, market movements can be quite volatile. Moreover, all intraday positions will be automatically squared off 15 minutes before the session ends, requiring traders to plan their activities carefully.
Historically, the Diwali muhurat trading session has been a positive predictor for the stock market. The BSE Sensex has closed higher in 13 out of the last 17 special sessions, reinforcing the belief that this auspicious trading window can yield favourable outcomes. While the trading volumes tend to be lower compared to regular sessions, the positive sentiment surrounding Diwali often leads to increased participation.
In the 2023 Muhurat session, the Nifty and Sensex both performed well, with Nifty 50 closing 100 points higher at 19,525.55, while the Sensex climbed 355 points to settle at 65,259.45.
For traders and investors, participating in the muhurat trading session is not just about financial gain; it is about embracing new beginnings and opportunities. Many seasoned investors use this time to reassess their portfolios and make strategic decisions. The belief is that trading during this auspicious hour will bring wealth and success throughout the year.
Goddess Lakshmi is worshipped during Diwali, and many traders prefer to purchase stocks as a gesture of respect and gratitude. Engaging in trading on this day is seen as a way to invite good fortune and prosperity into one's financial life.
In addition to the Diwali holiday on November 1, the stock market will observe another holiday on November 15, 2024, in observance of Prakash Gurpurab Sri Guru Nanak Dev.
As the date approaches, traders are urged to stay informed about the regulations and guidelines set forth by the exchanges. While the session is primarily symbolic, it remains a significant event in the Indian financial calendar, fostering a spirit of prosperity and new beginnings. Whether you're a seasoned investor or a newcomer, this is a moment to embrace both tradition and opportunity.
