Muhurat trading, which is a special Diwali trading session, will be conducted on Indian stock exchanges NSE and BSE on October 21 between 1:45 pm and 2:45 pm. Celebrated every year on Diwali, the hour-long session marks the beginning of the Hindu financial year, also known as Samvat.
Muhurat trading is believed to bestow wealth and prosperity. Traders see this as an auspicious day to begin new trades, aiming to secure the blessings from Goddess Lakshmi - the goddess of wealth, and Lord Ganesha - the remover of obstacles.
Beginning of new Samvat:
The session celebrates the beginning of Samvat 2082, the Hindu calendar year, which was first established by King Vikramaditya in 57 BCE. For traders, it is a fresh beginning on the auspicious night of Diwali, intended to set a positive tone for the coming year. Market participants, from retail investors to seasoned institutions, believe that trades made during Muhurat bring blessings of financial success.
Trading would take place across various segments like equity, commodity derivatives, currency derivatives, equity futures and options, and securities lending & borrowing (SLB) in the same time slot.
Why traders participate?
Traders follow the tradition of making token trades to commemorate the beginning of a new Samvat. Even those who are not actively involved with stock markets often make a small purchase or symbolic investment, believing it brings fortune for the year ahead.
Today, even though trading is mostly digital, many firms still uphold this ritual by ceremoniously marking their ledgers with turmeric, rice, and flowers. Some firms even begin the day by blessing computers, trading terminals and account books.
Low volumes, high optimism:
Muhurat Trading is marked by low volumes but strong positive sentiment. Many traders and institutions place small, symbolic trades rather than substantial investments, contributing to the festive atmosphere.
Despite the modest trading volumes, the session usually sees gains, as optimism runs high during the Diwali celebrations. It is a ritualistic beginning that sets a hopeful tone for the coming year, encouraging traders to approach the future with optimism.
Also read: Gaurang Shah’s top bets to add sparkle to your portfolio in Samvat 2082
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