Muhurat Trading refers to the special trading window on the Indian stock exchanges during Diwali, particularly on the day of Lakshmi Puja. This session is conducted on November 12, 2023, from 6:15 pm to 7:15 pm and is considered auspicious by the trading community.
Contents:
- What Is Muhurat Trading?
- Past Performance Of Muhurat Trading
- Muhurat Trading Time 2023
- Muhurat Trading Session
- What Happens In Muhurat Trading?
- History of Muhurat Trading
- Importance of Muhurat Trading Hour
- What Is Muhurat Trading? – Quick Summary
- Muhurat Trading – FAQs
What Is Muhurat Trading?
Muhurat Trading is a unique tradition in the Indian stock markets during the Diwali festival. It’s a short trading session, symbolizing good fortune and prosperity in the year ahead.
This session is rooted in the cultural belief of starting anew with positivity and blessings for wealth. Traders and investors engage in this session to celebrate Diwali and to set a positive tone for the Samvat year. It’s a time-honored tradition that blends finance with cultural practices, showcasing the unique aspects of the Indian stock market.
Past Performance Of Muhurat Trading
Muhurat Trading, a special trading session on Diwali, has generally shown positive performance in recent years. In 2022, both BSE Sensex and NSE Nifty experienced an increase of 0.88%. This trend of slight increases or occasional decreases reflects traders’ optimism during this auspicious event.
The performance during these sessions is usually not indicative of long-term market trends but rather symbolic of the positive sentiment prevailing among traders. The volumes traded are generally lower than regular trading days, with the focus more on the ceremonial aspect than on heavy trading.
Past Performance of Muhurat Trading
| Year | Sensex Closing (Gain/Loss) | Nifty Closing (Gain/Loss) |
| 2022 | +0.3% | +0.25% |
| 2021 | +0.45% | +0.4% |
| 2020 | +0.5% | +0.55% |
| 2019 | +0.3% | +0.35% |
| 2018 | -0.2% | -0.15% |
Muhurat Trading Time 2023
On November 12th, 2023 (Sunday), the Indian stock exchanges (NSE and BSE) will conduct a special Muhurat trading session for one hour to celebrate Diwali. According to announcements by both BSE and NSE, this symbolic trading period is scheduled from 6:00 PM to 7:15 PM. This timeframe also encompasses a 15-minute pre-market session, as detailed in separate circulars issued by the stock exchanges.
This timing aligns with the evening Lakshmi Puja, a significant ritual during Diwali. The specific timing can vary slightly each year based on the stock exchange’s decision and the Diwali calendar.
Muhurat Trading Session
The Muhurat Trading session is a special, short trading period on the Indian stock exchanges, typically lasting for about an hour. This session is unique in that it takes place after regular market hours, often in the evening of Diwali.
The significance of this session lies in its traditional value. It’s believed to bring good luck and prosperity to traders and the market for the coming year. The session is more about the ceremonial aspect rather than serious trading, and it sees participation from a wide spectrum of investors.
| Aspect | Detail |
| Duration | Approximately 1 hour |
| Timing | Usually in the evening (e.g., 6:15 PM to 7:15 PM) |
| Trading Activities | Primarily token trading, with reduced volumes |
| Market Participants | Wide range, including retail and institutional investors |
| Purpose | Symbolic and traditional, rather than strategic trading |
What Happens In Muhurat Trading?
During the Muhurat Trading session, several activities take place, primarily focused on token trading. This session is symbolic, marking the start of the new financial year in the Hindu calendar, Samvat.
- Token Trading: Investors make token purchases, often of small quantities, to mark the auspicious occasion.
- Ritual Significance: The session aligns with the Lakshmi Puja, and many traders participate as a good omen for prosperity and wealth.
- Retail Investor Participation: It sees a higher participation rate from retail investors, as the session is considered lucky for new investments.
- Limited Operational Hours: The trading session is limited to an hour, making it more of a ceremonial event than a regular trading day.
History of Muhurat Trading
Muhurat Trading has a history marked by varied performances. In 2018, the BSE Sensex closed with a gain of around 0.7%; in 2019, it observed a more modest gain of about 0.3%. These annual sessions, though brief, offer insight into the market’s sentiment and are keenly observed by investors for patterns and trends.
In recent years, such as 2020 and 2021, Muhurat Trading reflected the global economic climate with cautious trading and marginal movements. In 2020, amidst global economic uncertainties, the markets witnessed a slight uptick, indicative of cautious optimism among investors. Similarly, in 2021, the markets showed resilience, albeit with conservative gains, signaling a steady yet cautious approach by traders in the festive season.
Key Historical Insights:
- Origin: Rooted in Hindu tradition, linking finance with cultural practices.
- Evolution: From a regional practice to a nationally recognized event in the Indian stock markets.
- Symbolism: Represents auspicious beginnings and the welcoming of wealth and prosperity.
Importance of Muhurat Trading Hour
The primary importance of Muhurat Trading Hour is its symbolic value in the Indian stock market, signifying prosperity and good fortune for the forthcoming financial year. Investors generally buy stocks for long term during Muhurat Trading hour.
- Cultural Significance: This hour is considered highly auspicious, aligning with the Lakshmi Puja, which is a part of Diwali celebrations.
- Investor Sentiment: It is believed to set the tone for the upcoming financial year; positive trading is seen as a good omen.
- Participation: Encourages broad participation, including retail investors who may not trade regularly but partake in this session for its symbolic value.
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What Is Muhurat Trading? – Quick Summary
- Muhurat trading is a unique tradition in the Indian stock markets, symbolizing good fortune and prosperity during Diwali.
- Historically, Muhurat Trading sessions have shown marginal gains, reflecting positive sentiment among traders.
- Muhurat trading typically lasts for about an hour, often scheduled in the evening to coincide with Lakshmi Puja.
- During Muhrat trading, investors engage in token trading as a good omen, with activities aligning with the Lakshmi Puja.
- Muhurat Trading is a tradition dating back decades, symbolizing the start of a new financial year with blessings for wealth and success.
- Muhurat Trading hour is considered highly auspicious, believed to set a positive tone for the upcoming financial year.
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Muhurat Trading 2023 – FAQs
On November 12th, 2023 (Sunday), the Indian stock exchanges (NSE and BSE) will conduct a special Muhurat trading session from 6:00 PM to 7:15 PM. This timing is chosen to align with the auspicious occasion of Lakshmi Puja, symbolizing prosperity and wealth in the upcoming year.
Muhurat Trading in the Indian stock markets evolved organically, blending cultural traditions with financial activities. It is not attributed to an individual but rather to the collective adoption by the trading community, recognizing the importance of auspicious timings in Hindu culture.
Muhurat Trading is believed to bring good luck and prosperity, a positive omen for the upcoming financial year. It’s more about the symbolic and cultural value, reflecting the optimistic sentiment of traders and investors rather than tangible financial benefits.
While selling during Muhurat Trading is not typical, it’s not inherently negative. The session is more about token transactions, focusing on buying to symbolize entering the new year with positive investments rather than selling.
The rules for Muhurat Trading are similar to regular trading sessions, including regulatory guidelines and trading protocols. However, the session is shorter and often sees a blend of traditional and modern trading practices, emphasizing token trades.
Muhurat Trading is generally viewed with a bullish outlook, reflecting the optimistic sentiment associated with Diwali. It is considered an auspicious time to invest, symbolizing hope and prosperity for the financial year ahead.
Yes, intraday trading is allowed during Muhurat Trading. However, the focus of this session is typically on symbolic or token trading, with many investors participating for its cultural significance rather than for strategic trading purposes.
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