What is Muhurat Trading? A Guide To The Auspicious Diwali Stock Market Session

Muhurat Trading: As India immerses itself in the festivities of Diwali, the stock market will open for a special, hour-long trading session known as Muhurat Trading. The annual ritual of Muhurat Trading is steeped in tradition and is considered an auspicious time to invest and welcome wealth and prosperity for the year ahead.

The special trading session is organised by the stock exchanges – the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on the day of Diwali. In the literal sense "Muhurat" translates to an "auspicious time". Traditionally investors believe that trades executed during the special trading session bring good fortune and financial growth for the rest of the year.

Muhurat Trading 2025: Date and Time

The Muhurat Trading session will be held on Tuesday, October 21. The session will take place during the afternoon between 1:45 pm and 2:45 pm. The pre-open window for the Muhurat Trading session is expected to remain open from 1:30 pm to 1:45 pm. Once the session is over, order modifications will be allowed till about 2:55 pm.

Muhurat Trading: Cultural Significance

The Muhurat trading session has been observed for decades. Historically the broking community in India has held the festival in high regard. Notably, the session is celebrated on the evening of Diwali as it signifies the commencement of the new Hindu calendar year, known as the 'Vikram Samvat.'

While the date on which the Muhurat trading session takes place is decided on the basis of the Hindu lunar calendar, the timing of the session is carefully chosen by the exchanges and aligns with the most auspicious hours on the day of Diwali.

Beyond its financial implications, participation in the session is also about continuing a long-standing tradition. New traders and market veterans alike, place token orders during the session to buy stocks which are sometimes held for long durations with the belief that they bring in good luck and prosperity for the trader. The spirit of festivity makes the session unique as traders look beyond the technical aspects of investing. Investor sentiment tends to remain optimistic and buoyant during the special trading session.

However, investors should approach the session with a clear strategy. Due to the short window allowed for trading the volatility tends to remain high during the session. Thus investors should trade carefully and only after thoroughly researching their stock picks for the special trading session. On the other hand, investors who wish to begin their investment journey on the auspicious day but do not wish to directly buy stocks can also consider investing in Exchange Traded Funds (ETF).

To conclude, investors should avoid making losses during the session by not falling for stocks which are being hyped. Investors should prioritise the symbolic gesture of welcoming wealth and beginning the new Samvat year on a positive note rather than aiming for immediate, substantial profits or chasing momentum in the short-term.