The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have announced the timing for this year’s Diwali Muhurat trading session, which will be held on November 1, 2024, from 6:00 p.m. to 7:00 p.m. The session marks the beginning of Samvat 2081, the new year in the Hindu calendar, and is considered an auspicious time for financial growth.
The pre-opening session is set to run from 5:45 p.m. to 6:00 p.m., with the regular market remaining closed for the day to celebrate Diwali. During this special one-hour session, investors can trade in equities, currency derivatives, equity futures & options, and securities lending & borrowing.
Muhurat trading is a long-standing tradition in India’s financial markets, symbolizing prosperity and optimism for the coming year. The session aligns with favorable planetary positions, and it is believed that trading during this time brings good fortune. Historically, the market often sees positive returns during this period. For instance, the BSE Sensex has closed higher in 13 out of the last 17 Muhurat sessions. Even during the global financial crisis in 2008, the Sensex rose by 5.86% during the Muhurat session. Last year, on November 12, 2023, the Sensex gained 355 points, or 0.55%.
While trading volumes are generally lower during this short session, it still holds significant value for investors. Many use it as an opportunity to make new investments, diversify portfolios, or start new settlement accounts. However, participants should be mindful of the session’s brief duration and potential for volatility. Intraday positions will be automatically squared off 15 minutes before the session ends, so careful planning is essential.
For long-term investors, Muhurat trading is seen as a chance to start new investments with optimism and confidence, making it a highly anticipated event in India’s stock market.
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