India’s two leading stock exchanges, BSE and NSE, will hold a special one-hour ‘Muhurat Trading’ session on November 1, 2024, to celebrate Diwali. This session is significant as it marks the start of Samvat 2081, the new Hindu calendar year. The symbolic trading window will be open from 6:00 pm to 7:00 pm, as announced by the exchanges in separate circulars.
What is Muhurat Trading?
‘Muhurat Trading’ is a tradition followed by stock exchanges in India every Diwali. It is believed that trading during this auspicious hour brings prosperity and financial growth. Investors participate in this symbolic session to mark the beginning of the new financial year on a positive note, hoping that it will bring success in the coming year.
Although the markets will be closed for regular trading during the day on Diwali, the special trading window will allow transactions for one hour in the evening. Before the official start, a pre-opening session will be held between 5:45 pm and 6:00 pm to ensure smooth functioning.
Benefits of Muhurat Trading
Many market experts believe that Diwali is an ideal time to start something new. Investors often consider this one-hour session as a way to seek blessings for a successful year ahead. While the markets can be volatile during this time due to the short trading window, the focus is often more on participating in the tradition rather than on maximizing profits.
Investors may benefit from trading during Muhurat, with some suggesting that gains made during this session can lead to positive returns throughout the year.
Trading Across Multiple Segments
During the Muhurat Trading session, investors will have the opportunity to trade across a wide range of segments, including equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending and borrowing (SLB). This allows traders and investors to engage in different financial instruments during this auspicious period.
Overall, the Muhurat Trading session is not just about profits but a gesture of goodwill and optimism for a prosperous financial year ahead.
