Rahul Jain
The Indian economy, despite all its inherent potential, is going through one of its leanest patches recently. Renowned global agencies like the International Monetary Fund (IMF) and the Asian Development Bank (ADB) have slashed the country’s growth forecast in their publications. Today, the signs of an economic slowdown are all the more evident.
With the economic slowdown taking the center-stage, resulting in most investments turning red, investors are looking at ways to reverse fortunes and be optimistic.
Interestingly, our rituals, too, are all about keeping negativities at bay, being positive and Muhurat trading is just the beginning.
Positive sentiment on the horizon:
Muhurat trading is an auspicious slot on the day ‘Lakshmi Pujan’ on Diwali when markets open for an hour in the evening. Trading done during that particular period is believed to bring good luck, wealth and prosperity.
For individual and institutional investors, Muhurat trading presents an opportunity to carry out some trading as a token of auspicious buying. More than a means for booking profit, transactions are carried out with the hope of a profitable year ahead.
This year, BSE and NSE will conduct Muhurat trading on October 27 from 18:15 hrs to 19:15 hrs.
How to make the most of Muhurat trading?
As Muhurat trading is the mark of a new beginning, it’s the right time to take stock of your asset allocation and find out if it’s performing as per your liking, most importantly according to your financial goals. Note that with trading restricted to only an hour, Muhurat trading limits liquidity.
With little space to book profit, it is advisable to avoid day trading strategy during this special trading session. New investors looking to get started can make token investments to mark the auspicious occasion.
While doing so, don’t get swayed by the festive sentiments. Invest a small amount, ideally in large-cap scrips. If you are in a dilemma, you can take help from a certified financial planner.
To sum up:
Amid the domestic slowdown, international developments like political tension in the Middle East and the raging trade war between global powers are further expected to put pressure on the Indian economy.
As a response to the ongoing crisis, the concerned authorities have come up with several initiatives like concession in corporate tax, cut in the repo rate and linking of lending rate to external benchmarks for the efficient transfer of benefits of such cuts to the borrowers.
A boost in domestic investment holds the key to the revival of the spirits in the Indian financial markets. Also, paying homage to the goddess of wealth, Lakshmi, there can’t be a better occasion than Muhurat Trading to get started.
India, with its highly developed regulatory infrastructure and policy machinery, has gone a long way to set up a competitive business environment. Tiding over the current economic slowdown calls for financial consolidation, of which Muhurat trading can be the perfect beginning.
In a fluid market scenario, a long- term investment strategy can help you leverage the power of compounding and benefit from the inflation-beating returns of equities.
Happy trading!
(The author is Head, Personal Wealth Advisory, Edelweiss)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
