Muhurat Trading will be conducted on 12th October 2023 at 6 PM to 7:15 PM, on the auspicious occasion of Diwali.
On the occasion of Diwali, stock exchanges hold the ‘muhurat’ trading, one-hour session, which is considered auspicious to mark the beginning of the Hindu calendar year, called ‘VikramSamvat’.
Investors usually trade on Diwali Muhurat Trading day only for tradition and in order to make a symbolic gesture. The day is considered sacred and fortunate. And Muhurat Trading has been a decade’s long tradition which is now celebrated by traders and investors across the country.
The stock exchanges open from 9:15 am to 3:30 officially every day. But on Diwali Muhurat Trading, Stock exchanges open for 1 hour in the following parts.
During block-deal sessions, buyers and sellers agree to buy/sell securities at a fixed price and update the exchange.
The pre-opening session consists of eight minutes to calculate the equilibrium price of the securities.
Muhurat trading session
The Muhurat Trading session is the 1 hour period where the buying and selling take place.
Call Auction session
It is a session to trade illiquid securities.
During the closing session, traders can place their orders at the closing price.
Facts you should know before Trading & Investing during Diwali Muhurat Trading hours.
If you are planning to Trade during Muhurat Trading 2023, you should be aware of a few facts.
- As per the data from the past 5 years, the options volume is lower than the Average daily trading volume.
- Sensex has closed negative on 3 Muhurat Trading days and Positive on 7 Muhurat Trading Days during the last 10 years.
- Another interesting fact is that The Next day after the Muhurat trading session, the Sensex closed negative on 6 occasions and positive on 4 occasions during the last 10 years.
The data of the last 5 years shows that the Index closed positive on 4 Muhurat trading days and also the next day after the Muhurat Trading day.
History of Muhurat Trading.
Meaning of Muhurat – A day of good fortune as per Indian astrology, on which beginning any new project is deemed to bring good luck in the future.
Diwali Muhurat trading has a long history in the Indian market. Diwali is considered the beginning of the New Year as per the Hindu calendar. Thus, Traders in India started their new accounts on the auspicious day of (“Shubh Muhurat”) Diwali.
The Custom of Diwali Muhurat Trading was started by Gujarati and Marwari Traders and Brokers, although we couldn’t find any official records to authenticate this. But a large part of the trading and broking community were Gujarati and Marwari back in those days, who followed their financial year as per the Indian (Hindu) Calendar.
The custom was to perform Lakshmi Pooja at the Stock Exchange and also worship their Khata Books. Goddess Lakshmi is the goddess of wealth,fortune, Prosperity,beauty,power, andfertility. Thus, Lakshmi Pooja has become a tradition on every Diwali for Traders which led to the beginning of Muhurat Trading at Both our major Stock Exchanges every Diwali.
The Tradition of Diwali Muhurat Trading was started in 1957 by BSE, and in 1992 by The National Stock Exchange. And Muhurat Trading has since become a regular tradition for most traders in the Stock market.
The Stock market shows volatility during the Muhurat Trading hours and Investors should exercise caution during those hours. The Stock market has been extremely Volatile During past 2 months and Investors should use proper Knowledge before Investing in the stock market or take help from a Market expert to be safe.