As Diwali, the festival of lights, approaches, a unique event excites traders and investors across India: Muhurat Trading. This one-hour trading session, exclusive to the Diwali day, holds deep cultural significance, symbolising prosperity and good fortune in the Hindu New Year.
Every year, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) hold Muhurat Trading to mark the auspicious beginning of Samvat, the Hindu calendar year, allowing investors to make fresh beginnings in their financial pursuits. Here’s everything you need to know about Muhurat Trading 2024.
What Is Muhurat Trading?
As mentioned, Muhurat trading is a special one-hour trading session that takes place on Diwali evening every year. “Muhurat” is a Sanskrit word signifying an auspicious time. During Muhurat trading, traders and investors buy and sell shares, hoping to attract wealth and good fortune for the upcoming year.
The specific timing for this special session is announced by stock exchanges a few days before Diwali. Similar to regular trading, Muhurat trading is open to all traders and investors. During this period, you can place orders through your stockbroker or Demat app, and invest in stocks, derivatives, and currency derivatives. You can also participate in commodity trading during Muhurat trading.
When Will Muhurat Trading Take Place in 2024?
Muhurat trading time will take place on the day of the Diwali festival, i.e., Friday, 1st November 2024. The date will also mark the beginning of the Hindu New Year, Samvat 2081. As per the circulars released by the stock exchanges, the trading session will begin at 6 PM (Indian Standard Time) in the evening and will remain active for one hour, i.e., till 7 PM. There will also be pre-opening and pre-closing sessions between 5:45 PM to 6 PM and 7 PM to 7:20 PM.
The same time slot will also be designated for trading in the securities as well as in equity futures and options, currencies, and other derivatives.
The table below depicts additional timing details for Muhurat Trading 2024:
| Session | Start Time | End Time |
| Block Deal Session | 5:30 PM | 5:45 PM |
| Special Pre-open Session (For IPOs and relisted stocks) | 5:45 PM | 6:30 PM |
| Normal market time for IPOs and relisted stocks | 6:30 PM | 7 PM |
| Call Auction Illiquid Session | 6:05 PM | 6:50 PM |
| Closing Session | 7:10 PM | 7:20 PM |
| Trade Modification Cut-off Time | 6 PM | 7:30 PM |
All times are in Indian Standard Time (IST)
Significance of Muhurat Trading
Muhurat Trading is more than just a symbolic gesture; it’s a day marked by strong emotional and cultural ties for Indian investors. Here’s why it holds importance:
Symbol Of Prosperity
Investing on the day of Diwali aligns with the tradition of praying for financial prosperity and success in the New Year. It’s a way to seek blessings for wealth and abundance in the coming year.
Low Volume, Lower Volatility
The Muhurat Trading session typically has lower trading volumes compared to regular sessions, which also leads to lower market volatility. This gives new investors a chance to enter the market in a more stable environment.
Positive Market Sentiments
Market sentiments are typically positive during the Muhurat trading session, with a sense of optimism among investors. They are generally bullish, and the market sees increased participation from retail investors.
Long-Term Investments
Many investors choose the Muhurat trading session to make long-term investments, marking the beginning of a financial journey for the new Samvat year. It’s common for family members to get together and participate in the market, adding to the symbolic importance.
Things To Keep in Mind During Muhurat Trading
While Muhurat trading offers an auspicious occasion to make new investments, it also entails certain risks. Below are a few things you must keep in mind during the Muhurat trading session:
Set Investment Goals
Before entering the Muhurat trading session, have clear financial goals. Since the session is short, identify which stocks you want to invest in beforehand, especially those you’re considering for the long term.
Plan Your Trades Early
Since the trading window is short, plan your trades well in advance. Avoid impulsive trading decisions as the focus is on starting the New Year with strategic investments.
Stay Away From Emotional Trading
The festive atmosphere can encourage emotional trading, where investors base decisions on sentiments instead of rational analysis. This behaviour may impair judgment and lead to suboptimal investment choices.
Avoid Intraday Trading
While intraday trading is allowed during the Muhurat trading session, it’s best to avoid it. A one-hour session is too short for such high-risk trades. Instead, you can focus on investing in fundamentally strong stocks that you can hold.
The Final Words
Muhurat Trading is a special occasion that merges finance with tradition, offering a chance for investors to begin the Hindu New Year with positive intent and optimism. Whether you’re a seasoned investor or a beginner, Muhurat Trading 2024 is an opportunity to make thoughtful investments that could shape your portfolio in the coming year. At the same time, you must keep in mind the risks involved and stay clear from making wrong investment decisions.
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