Muhurat Trading

Muhurat Trading is a special trading session conducted by Indian stock exchanges on the auspicious occasion of Diwali, the Hindu festival of lights. This long-standing tradition marks the beginning of the new financial year (known as Samvat) for traders and investors, symbolizing prosperity and good fortune. Key Features: Conducted by major Indian stock exchanges such as NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). The session usually lasts for one hour in the evening on Diwali day. Considered symbolically auspicious, with traders believing that investments made during this time bring long-term prosperity. Both individual investors and institutional participants take part, often performing Lakshmi Puja before trading. Market sentiment during Muhurat trading is generally positive and festive, with low volatility and moderate volumes.

Example: On Diwali evening, the BSE and NSE announce a special one-hour Muhurat trading window (e.g., 6:15 PM to 7:15 PM). Traders and investors buy shares—often of blue-chip or favorite stocks—as a symbolic gesture of good luck.