Table of Contents
Diwali, the festival of lights is a celebration of wealth, prosperity and growth in life. The auspicious occasion marks the triumph of light over darkness. For stock markets, the day has special significance.
Investors, as well as all business owners, look forward to the Muhurat Trading session that is held on Diwali every year. The term 'Muhurat' refers to an auspicious time in the Hindu calendar.
While the stock exchanges remain closed, a special one-hour trading session referred to as Muhurat Trading is held on the evening of Diwali to mark the beginning of the new Samvat. This year it will be the beginning of Samvat 2081.
This special trading session is divided into multiple slots dedicated to specific market segments, such as stocks, derivatives and commodities.
The timing of the session changes each year based on the Panchang and Hindu calendar. Typically, the session is held during the evening, marking the beginning of New Year or Samvat.
Muhurat Trading 2024: Date And Time
In 2024, Stock market exchanges have scheduled the Muhurat Trading session on Friday November 1, from 6:00 PM to 7:00 PM, as per the NSE notification.
The pre-opening session is scheduled to commence at 5:45 PM. and will last for 15 minutes. After the pre-opening session, the stock exchanges, NSE and BSE, will hold their annual Diwali Muhurat trading session.
Stock Market On Muhurat Trading Day: All You Need To Know Going Into Trade On Nov. 1
What Happens In Muhurat Trading?
Here's a look at the different parts of the Muhurat Trading session:
Block Deal Session
The block deal session is the initial phase of Muhurat Trading. In this session, traders commit to the sale or purchase of a security at a predetermined price. The buying or selling is reported to the stock exchange.
Pre-Open Session
The pre-open session is also called the 'Call Auction' session. In this part of Muhurat Trading, the exchanges calculate the opening price based on supply and demand. Typically, this process takes nearly eight minutes.
Trade Setup For Muhurat Trading: Nifty 50 Sees Resistance At 24,300-24,400
Main Trading Window
This refers to the near-one-hour trading session, where the bulk of transactions are executed as investors make token trades.
Call Action Illiquid Session
During this part of the special session, securities that are not frequently traded, also known as 'illiquid' securities are traded based on the specific criteria outlined by the exchange.
Closing Session
This is the final part of the special trading session, in which, traders and investors are allowed to place orders at the market's closing price.
Stocks To Watch During Muhurat Trading: Reliance Industries, MCX And More
Diwali Muhurat Trading 2024: Significance
It is believed that trading during the 'muhurat' or auspicious hour brings prosperity and financial growth to the stakeholders.
Market analysts said that Diwali is considered to be the ideal time to start anything new. Investors are said to benefit from trading during this session all through the year.
Since the trading window is only open for an hour, markets are known to be volatile. The focus might not be on profitability as much as it might be on the gesture, they added.
Diwali Muhurat Stock Picks: NCC, Bajaj Electricals, Jubilant FoodWorks Among Angel One’s Shortlist
Diwali Muhurat Trading History
The history of Muhurat trading in India dates back several decades. The BSE officially organised the first Muhurat trading session in 1957. Investors, particularly the traditional business communities, participate in this trading session to seek the blessings of Goddess Lakshmi.
Muhurat trading has become a festive occasion with ceremonial trading taking place amidst the ringing of bells and the lighting of lamps.
The trading done during Muhurat is often symbolic, with many retail investors making token purchases to mark the tradition. However, market performance during Muhurat trading is closely watched by participants, as it is considered indicative of market sentiment for the coming year.
. Read more on Markets by NDTV Profit.