BSE, NSE to conduct one-hour muhurat trading on Diwali: Check timings, significance, other details

"Diwali is considered to be the ideal time to start anything new. The market sentiment is quite positive, with a majority of buying orders across segments. Investors are said to benefit from trading during this session all through the year," Puneet Maheshwari, Director at Upstox, said.

Since the trading window is only open for an hour, markets are known to be volatile. Therefore, new traders should be watchful. The focus might not be on profitability as much as it might be on the gesture, he added. Trading would take place across various segments like equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB) in the same time slot.

Overall, Indian equities have outperformed global markets significantly in Samvat 2078 and the outperformance is expected to continue in Samvat 2079, driven by strong recovery in the Indian economy and domestic liquidity, offsetting FPI (Foreign Portfolio Investors) outflows, Manish Jeloka, Co-head of Products & Solutions, Sanctum Wealth, said. However, investors need to keep in mind that a slowdown in the global economy due to tightening liquidity conditions could lead to bouts of volatility like that witnessed in Samvat 2078, he added.

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While currently, key benchmarks indices are a little changed from the levels observed during last Diwali, the market has witnessed a lot of volatility. Since last Diwali, Indian stocks have been choppy, tracking global peers amid expectations of rate hikes by central banks across the world to tackle higher inflation. Geopolitical tensions and the consequent energy crisis have also dampened investor sentiment.

The exchanges will remain closed on October 26, on the occasion of Diwali Balipratipada.

(With inputs from PTI)