Muhurat trading: India's two largest exchanges BSE and NSE will hold a special one-hour 'Muhurat trading' session on the occasion of Diwali on November 1. This is a unique one-hour event held on Diwali, which will mark the beginning of the new Samvat 2081.

The stock markets have announced that the pre-market muhurat trading session will be held from 5:45 pm to 6:00 pm. This session is held along with Laxmi Pujan.

What is Muhurat Trading?

This session also marks the beginning of the new Samvat (Hindu calendar year starting from Diwali). Every year, Indian stock exchanges Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) hold a special trading session during Diwali to mark the beginning of the new financial year according to the Hindu calendar.

'Muhurat' is an auspicious period chosen based on the position of the planets, which is believed to bring good luck to investors. Trading during 'Muhurat' or 'auspicious hour' is believed to bring prosperity to the stockholders and lead to financial growth.

What is Muhurat trading time?

No official information has been given yet regarding the time of Muhurat trading on BSE. BSE and NSE will issue a separate notification in this regard before Diwali 2024. However, Muhurat trading will certainly take place on the date of November 1 (Muhurat trading date 2024). The stock markets said in separate circulars that the Muhurat trading session will be held between 6 pm and 7 pm (Muhurat trading time). Muhurat trading takes place on the evening of Diwali, one of the most famous festivals in India. Stock exchanges have fixed the time a few days before Diwali.

However, NSE has said that Muhurat trading will take place between 6 pm and 7 pm. Whereas, the trade modification time will close at 7:10 pm.

What happens in Muhurat trading? What does it mean

Muhurat trading is a symbolic session, but very active participation of shareholders is seen during Muhurat trading. Many big investors take advantage of this opportunity to adjust their holdings. Since the stock market opens for only 1 hour, due to the limited window, a lot of movement is seen in a short time. During this 1 hour, block deal, pre-open, regular, call auction, and closing sessions take place.

The market believes that Diwali is an ideal time to start anything new. Investors benefit from trading done during this session throughout the year.

If we look at the previous sessions, the market has been seen to be buzzing on this occasion. Muhurat trading sessions have often seen positive returns. BSE's benchmark-Sensex has closed at a high level in 13 of the last 17 Muhurat sessions. For example, in 2008, despite the global financial crisis, the Sensex jumped 5.86% during Muhurat trading.

Since 2012, the Sensex has registered profits in 9 out of 12 Muhurat sessions. Last year's Muhurat trading session was held on 12 November 2023. During that time, the Sensex closed with a gain of 355 points or 0.55%. However, due to limited window and short time trading, the stock market later declined.

Is the stock market open or closed on Diwali?

Now the question is whether the stock market will remain closed on Diwali (is the share market closed on Diwali) then the answer is yes. The market will remain closed for regular trading on Diwali, but a special trading window will remain open for one hour in the evening (6-7 PM).