Diwali Muhurat Trading: Special One-Hour Session at BSE and NSE
On Friday evening, during the Diwali Laxmi Puja, stock exchanges in India will open for a special one-hour trading session known as Muhurat trading. The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will operate from 6:00 pm to 7:00 pm, with the pre-market opening at 5:45 pm. This marks the beginning of Samvat 2081, a new year in the Hindu calendar.
The Muhurat trading session includes all market segments such as equity, commodity derivatives, currency derivatives, equity futures and options, and securities lending and borrowing. This tradition is believed to bring good returns on investments made during this auspicious time. Many people also time their purchases of gold, silver, real estate, electronics, and automobiles on this day.
Trading volumes are typically high during this session as many orders are placed. Last year, stock indices rose significantly, benefiting investors. Data shows an increase in the number of investors participating in this special trade over the years.
Vikram Kasat, Head of Advisory at PL Capital – Prabhudas Lilladher, noted that markets have closed in the red only three times during Muhurat trading in the past decade, suggesting potential festive cheer. Amit Goel, Group CEO of MarketsMojo, advised investors to focus on sectors like technology, healthcare, renewable energy, and infrastructure, which are expected to drive significant value in the future.
Doubts Revealed
Diwali -: Diwali is a major Hindu festival celebrated in India, known as the Festival of Lights. It symbolizes the victory of light over darkness and good over evil.
Muhurat Trading -: Muhurat Trading is a special trading session conducted by Indian stock exchanges on Diwali. It is considered an auspicious time to invest in stocks, believed to bring prosperity and wealth.
BSE -: BSE stands for Bombay Stock Exchange, which is one of the largest and oldest stock exchanges in India where people buy and sell shares of companies.
NSE -: NSE stands for National Stock Exchange, another major stock exchange in India where people trade shares and other financial instruments.
Samvat 2081 -: Samvat 2081 refers to the Hindu calendar year starting on Diwali. It is used by traders to mark the beginning of a new financial year.
Stock Indices -: Stock indices are indicators that show the performance of a group of stocks, like the Sensex or Nifty, which represent the overall market trends.
Vikram Kasat -: Vikram Kasat is likely a financial expert or analyst who provides insights on stock market trends and trading strategies.
Amit Goel -: Amit Goel is likely a financial advisor or market analyst who gives advice on which sectors to invest in for better returns.
Technology Sector -: The technology sector includes companies that create or provide technology products and services, like software, hardware, and IT services.
Renewable Energy -: Renewable energy refers to energy sources that are sustainable and can be replenished, like solar, wind, and hydroelectric power.