Diwali Muhurat Trading: A One-Hour Financial Celebration

Stock exchanges in India will open for a special one-hour Muhurat trading session on Diwali, marking the start of Samvat 2081. The tradition promises auspicious investments, high volumes, and potential positive returns, with a focus on sectors like technology, healthcare, renewable energy, and infrastructure.

In a unique annual tradition, India's stock markets will conduct a special one-hour Muhurat trading session on Friday evening, coinciding with Diwali's Laxmi Puja. Investors will engage in trading between 6:00 pm to 7:00 pm on the Bombay Stock Exchange and National Stock Exchange, following a pre-market session at 5:45 pm.

This session marks the commencement of Samvat 2081, a significant year in the Hindu calendar. Muhurat trading encompasses all market segments such as equity, commodity derivatives, and currency derivatives, among others, concentrating trading activities in this auspicious timeslot.

The practice has deep-rooted cultural significance, based on the belief that investments made during Muhurat trading bring prosperity. Traditionally, high trading volumes are noted as investors prefer making strategic investments in stocks and precious metals during this festive period. Last year's Muhurat trading session saw benchmark indices rising significantly, boosting investor confidence.

Historical data suggests that markets have closed the Muhurat session in the red only three times over the past decade, sparking optimism for upcoming trading activities. Experts like Vikram Kasat of PL Capital – Prabhudas Lilladher note this trend, while Amit Goel of MarketsMojo advises investors to opt for durable sectors such as technology, healthcare, renewable energy, and infrastructure, essential to a rapidly evolving economy.

(With inputs from agencies.)