NSE to conduct one-hour Diwali ‘Muhurat Trading’ on Oct 21 from 1:45 pm-2:45 pm

NSE to conduct one-hour Diwali ‘Muhurat Trading’ on Oct 21 from 1:45 pm-2:45 pm

NSE will conduct a one-hour special ‘Muhurat Trading’ session on the occasion of Diwali on October 21.

The symbolic trading session will be held between 1:45 pm and 2:45 pm, the stock exchange said in a circular. The exchange announced that the pre-opening session will take place from 1:30 pm to 1:45 pm.

Accordingly, the block deal session will be between 1:15 pm – 1:30 pm. Special pre-open session (for IPOs & relisted securities) will be between 1:30 pm – 2:15 pm. Normal market open for stocks in special pre-open session will be from 2:30 pm – 2:45 pm. Closing session time is fixed between 2:55 pm – 3:05 pm and trade modification cut-off time will be between 1:45 pm – 3:15 pm, announced NSE.

All trades executed in this Diwali Muhurat trading session shall result in settlement obligations, said NSE.

The session also marks the beginning of a new Samvat — the Hindu calendar year that starts on Diwali — and it is believed that trading during the ‘Muhurat’ or auspicious hour brings prosperity and financial growth for the stakeholders.

The market will remain closed for regular trading on Diwali, but a special trading window will be open for one hour in the afternoon.

Other exchanges are also expected to issue a similarly worded circular as exchanges after consultation with each other fix the trading time on Muhurat Trading.

Muhurat Trading, a long-standing tradition in Indian stock markets, is held every year on Diwali. The session marks the start of the new financial year as per the Vikram Samvat calendar, currently the Vikram Samvat year is 2082. Trading on Muhurat day is seen by investors as a symbolic gesture to usher in prosperity and wealth.

Market analysts said that Diwali is considered to be the ideal time to start anything new. Investors are said to benefit from trading during this session all through the year.

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.