The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India have scheduled a special one-hour trading session on Sunday, November 12, to mark the Diwali Muhurat trading. This event is a long-standing tradition, symbolizing the auspicious occasion of the Diwali festival.
Understanding Muhurat Trading:
Muhurat Trading is a traditional practice observed by traders in India. It involves a designated one-hour trading period on Diwali, believed to be particularly favorable for financial investments. Each year, the stock exchanges announce the specific timing for this session.
The underlying belief is that trading during this auspicious hour can lead to wealth accumulation and prosperity throughout the year. Typically conducted in the evening of Diwali, many participants buy stocks, viewing it as a gesture of inviting blessings from Goddess Lakshmi. This practice is unique to the Indian stock markets.
The schedule for the Muhurat Trading on November 12, 2023, is as follows:
Pre-Open Session: 6:00 PM - 6:08 PM IST
Muhurat Trading: 6:15 PM - 7:15 PM IST
Post-Close: 7:30 PM - 7:38 PM IST
Market Close: 7:40 PM IST
Significance of Muhurat Trading:
Muhurat Trading holds significant value for traders and investors, seen as an opportune time to embark on new financial ventures and attract good fortune. The concept is rooted in the belief that trading during this ‘Muhurat’ or favorable time can lead to success and financial prosperity.
Historically, this trading session has seen positive outcomes. For instance, in the previous year, both Sensex and Nifty indices experienced an increase of 0.88% during this one-hour session, while a gain of 0.49% was recorded in each index in 2021. This tradition, embedded in the cultural fabric of Indian financial markets, continues to be a focal point for investors seeking to blend traditional beliefs with modern investment practices.
