The festival of lights, Diwali, has grown beyond its religious and cultural roots to include the Indian subcontinent as a vivid tapestry of celebration, harmony, and optimism. Due to the tradition of “Diwali Muhurat Trading,” Diwali maintains a particular place in the hearts of investors and merchants, in addition to symbolising the victory of light over darkness through flickering lamps and brilliant fireworks.
In the world of stocks and investing, this long-standing custom heralds the start of a new fiscal year. As people try to align themselves with cosmic forces for a year of financial prosperity, it’s a period when both the markets and the populace are in high spirits.
Traders and investors are excited to see what this year’s auspicious occasion will bring, given the Nifty 50 index reached an all-time high during last year’s Diwali Muhurat trading surge. The numbers tell an intriguing story.
What is Muhurat Trading?
People in India frequently wonder, “What is muhurat trading?” and many aren’t even aware of the idea. In India’s financial markets, Muhurat Trading, or simply “Mahurat Trading,” is a long-standing custom. On the auspicious occasion of Diwali, there is a unique one-hour trading session.
In Hindu astrology, the name “Muhurat” designates an auspicious moment, and it is thought that any effort undertaken at this period is bound for success. Muhurat Trading is a joyous and significant occasion that ushers in a new trading year. Traders and investors take advantage of this short window of opportunity to purchase tokens and equities and start new investment endeavours in the hopes of obtaining good fortune for the upcoming year.
Financial prosperity coincides with cultural and spiritual significance during this period, so the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) look forward to it immensely.
Muhurat Trading: Timing and Date
The specific Diwali muhurat trading timing varies each year based on astrological calculations. It usually falls during the evening, providing an hour of trading that symbolises a fresh start for investors.
In 2023, muhurat trading is scheduled for Sunday, November 12. The pre-opening session commences at 6:00 PM, lasting for a quarter of an hour. Subsequently, the continuous trading session initiates at 6:15 PM and concludes at 7:15 PM.
Here are the Muhurat trading timings as announced by BSE India:
The Muhurat trading session for the Equity Derivatives Segment on November 12, 2023, will be held at:
| Trading Sessions | Time |
| Log-in | 5:15-6:15 PM |
| Continuous trading | 6:15-7:15 PM |
| Trade Modification | Until 7:25 PM |
| Trade Annulment Request | Until 7:30 PM |
The Muhurat trading session for the Commodity Derivatives Segment on November 12, 2023 will be held at:
| Trading Sessions | Time |
| Log-in | 5:15-6:15 PM |
| Continuous trading | 6:15-7:15 PM |
| Trade Modification | Until 7:25 PM |
The Muhurat trading session for the Currency Derivatives Segment on November 12, 2023, will be held at:
| Trading Sessions | Time |
| Log-in | 5:15-6:15 PM |
| Continuous trading for currency derivatives and interest rate derivatives | 6:15-7:15 PM |
| Cross currency derivatives | Until 7:15 PM |
| Trade modification currency derivatives and IRD | Until 7:25 PM |
| Trade modification cross currency derivatives | Until 7:25 PM |
| Trade annulment request | Until 7:30 PM |
The Muhurat trading session for the Electronic Gold Receipts Segment on November 12, 2023 will be held at:
| Trading Sessions | Time |
| Log-in | 5:00-6:00 PM |
| Pre-open: order entry period | 6:00-6:08 PM |
| Pre-open: matching period | 6:08-6:15 PM |
| Continuous trading | 6:15-7:15 PM |
| Closing | 7:15-7:25 PM |
| Post-closing | 7:25-7:35 PM |
| Trade modification | Until 7:40 PM |
History of Diwali muhurat trading
Diwali Muhurat Trading’s history has roots ingrained in India’s rich cultural heritage and has been practised for many years. It aims to bring auspiciousness and spirituality to the financial markets and synchronises them with the celebration of Diwali, the festival of lights.
The National Stock Exchange (NSE) later embraced the idea of muhurat trading, which first gained traction in the 1950s on the Bombay Stock Exchange (BSE). It has developed into a representation of hope and fresh starts over time when merchants and investors gather to pray for good fortune and a thriving trading year.
The rich history of Diwali Muhurat Trading indicates the enduring faith in the efficacy of lucky starts and the harmonious fusion of trade and culture.
Diwali Muhurat Trading in NSE and BSE
For the Indian financial community, Diwali Muhurat Trading on the NSE and the BSE is a highly anticipated occasion. Due to this custom, market participants can participate in a symbolic trading session on the auspicious festival of Diwali, which signifies the start of a new trading year.
Diwali Muhurat Trading NSE provides a venue for traders and investors to unite and commemorate the holiday while making thoughtful financial decisions. During this brief one-hour window, the NSE ensures that trading runs smoothly and efficiently.
Similarly, Diwali Muhurat Trading BSE, which has its historical origins in the 1950s, is quite important. The BSE, Asia’s oldest stock exchange, is essential to maintaining this custom, encouraging optimism, and enabling market players to start a successful trading year. A unique and extraordinary event in the Indian financial calendar, these sessions in both exchanges are marked by an atmosphere of passion and cultural reverence.
Diwali Muhurat Trading Benefits
Prosperous commencement
The primary Diwali Muhurat Trading benefit is the prosperous commencement of the trading year. Making investments now would likely result in wealth and luck.
Market attitude
Traditionally, business during Diwali Muhurat sets the tone for the year. Investor confidence might rise in the market after a successful session.
Low volatility
Compared to ordinary trading days, there is less volatility because the trading session is only one hour long. Low volatility could be advantageous for traders who want to make calculated bets.
Enhanced liquidity
The market is more liquid because of the festive mood and high levels of enthusiasm among participants, even though trading volumes are lower than during regular sessions.
Diwali Muhurat Trading Tips
Not only do you need lamps and pyrotechnics to get through this special trading session, but you also need a well-thought-out plan and insights into the market dynamics. We’ll dive into some excellent Diwali muhurat trading tips to help traders take full advantage of this occasion while balancing the festival’s spirit and the need for financial gain.
Plan ahead
Make sure you have a well-thought-out plan before the trading session. Choose the stocks or other assets you wish to invest in, decide when to enter and quit the market, and be ready to carry out your plan effectively in the time allotted.
Remain up to date
Make sure you are aware of all the most recent events and news about the financial markets. It’s essential to keep updated since stock values might be affected by unforeseen announcements or events.
Refrain from making impulsive decisions
Because the trading session is brief, refrain from making rash choices. Adhere to your prearranged strategy and refrain from chasing erratic price swings.
Spread your assets
Avoid putting all of your money in one place. Spread out the risk in your portfolio and improve your chances of success by diversifying it.
Be cautious
Remember that the market might still be a little muted because of the holidays, so be cautious and don’t take unwarranted risks.
Conclusion
November 6, 2023, is designated as Diwali Muhurat Trading 2023, marking the eagerly anticipated festival of lights. An opportunity for traders and investors to start a successful and lucrative year in the financial markets will present itself during the evening trading session. To secure a prosperous financial year, investors use this time to make symbolic purchases, acquire equities, and open new trading positions.