Muhurat Trading

Diwali (Hindu festival) is usually a trading holiday declared by NSE, but a special 75 min (approx.) special trading session is conducted by national stock exchange and bombay stock exchange in evening, know as "Muhurat" to pay obeisance to Lakshmi, the goddess of wealth and prosperity. It's a tradition to trade during the Muhurat. So all trades which got executed in this Diwali muhurat trading session shall result in settlement obligations both in equities, derivatives. Annually the exact timings will be declared by NSE a weak before muhurat trading (The time for Muhurat trading changes every year).

Diwali is also the beginning of the Hindu New Year (Samvat Year) for traders which is based on the lunar calendar as per ancient Hindu traditions. Tradition which is over a century old. And that is why it is considered to bring blessing for the year ahead.

Trades or investors made trade on this day are more for traditional, religious and sentimental reasons, Traders consider this day a very auspicious and do token investments on this day. And some investors make investments and usually hold the stock for a year or so. .Most of the times after muhurat trading day, the market has witnessed rally.

Many investors use this muhurat trading session to accumulate investments for long term. In fact, they consider it is a good time for long term investments.

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It is an old believed that this day is an auspicious time according to the Hindu`s calendar where the planets are align in such a way that what ever task you perform during this time duration, becomes profitable & no influences of evil forces. Just like getting married on a specific Muhurat is very common, so does the trading at particular time during the Diwali day.

On Muhurat trading day markets had performed well show positive returns. If you want to experience it then you can make a token investment keeping in mind the basic fundamentals of investing. But, keep in mind, for lay investors it's always the long-term strategy of investments based on your financial goals. Do consult your Financial Advisor before you make any investments.

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