Diwali 2023 Muhurat Trading Date and Time

Category : Knowledge Center

Diwali, the Festival of Lights, is an auspicious occasion in the Hindu calendar, symbolizing the triumph of light over darkness, knowledge over ignorance, and goodness over evil. Like many religious festivals, Diwali is rich in beliefs, customs, and traditions. Among these traditions, one stands out – Muhurat Trading. Muhurat Trading presents an exciting opportunity to begin your investment journey on a lucky note.

What is Muhurat Trading?

Muhurat Trading is a customary ritual followed by Indian traders. 'Muhurat' means an auspicious time, and in Hindu traditions, it represents a moment when planetary alignments are believed to be favorable for achieving positive results.

Muhurat Trading is a special one-hour trading session on Diwali day, considered auspicious for investing in shares. Each year, the stock exchange specifies the timing for Muhurat Trading. People who engage in trading during this one hour believe that it brings them blessings from Goddess Lakshmi, the deity of wealth. There's a strong belief that investing during this time can lead to increased prosperity throughout the year. This tradition is unique to Indian stock markets.

Many individuals choose to buy stocks on Diwali and hold them for the long term, even passing them down through generations.

History of Muhurat Trading

Muhurat Trading has been a tradition on Indian stock exchanges for more than 50 years. It was initially introduced by the Bombay Stock Exchange (BSE) back in 1957. National Stock Exchange (NSE) later followed this tradition, starting its own Muhurat Trading session in 1992. This special trading session has since become an integral part of the Diwali celebrations.

The origins of Muhurat Trading lie in the tradition of stockbrokers starting their new year on Diwali. They used to open new settlement accounts for clients during this auspicious Muhurat. Traditionally, Marwari traders believed in selling stocks during Muhurat to avoid money entering the house on Diwali, while Gujarati traders purchased shares during this period.

Before this traditional trading session, stockbrokers perform 'Chopra Pooja,' a ceremony where they worship their account books at the stock exchange.

What happens in Muhurat Trading?

Muhurat Trading takes place on Diwali, and it's allowed by both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). This session is divided into 5 segments:

1. Block Deal Session: During this, two parties agree to buy or sell a security at a fixed price and inform the stock exchange.
2. Pre-Open Session: The exchange determines the equilibrium price within approximately eight minutes.
3. Normal Market Session: This is the one-hour trading period.
4. Call Auction Session: It's for trading illiquid securities based on exchange criteria.
5. Closing Session: Traders and investors can place market orders at the closing price.

Muhurat Trading Timings 2023

As per the Hindu Calendar, this year, Diwali is on Sunday, i.e., 12th November 2023. Take a look at the Muhurat Trading timings for 2023 on both the BSE and NSE

NSE:

• Pre-Open Session: 6:00 PM - 6:08 PM
• Continuous Trading Session: 6:15 PM - 7:15 PM
• Modification and Closing Session: 7:25 PM - 7:35 PM

BSE:

• Pre-Open Session: 6:00 PM - 6:05 PM
• Continuous Trading Session: 6:10 PM - 7:10 PM
• Modification and Closing Session: 7:20 PM - 7:30 PM

Who Can Benefit from Muhurat Trading?

Muhurat Trading offers opportunities for both new and experienced investors and traders. The festive atmosphere often leads to a positive, bullish market. If you're new to stock investments, Diwali can be an auspicious day to begin. However, new traders should exercise caution due to market volatility during this one-hour period.

Experienced day traders can also benefit from Muhurat Trading by making well-researched trades. Always keep in mind that trading during Muhurat doesn't guarantee profits, so it's crucial to trade after understanding market volatility. This special session is a good time to buy or sell shares because trading volumes are high.

There have been instances when the market traded in red on Muhurat trading, so it's important to approach with caution and conduct thorough research before investing or trading.

Considerations Before Engaging in Muhurat Trading

*Please note that the exact timings for Muhurat Trading are usually announced by the stock exchanges a few days before Diwali. The above timings are just an example and may differ from year to year.