Muhurat Trading on Diwali: Check Timings, All You Need to Know

On the auspicious day of Diwali, people across India perform Lakshmi Puja and in the evening, the Indian stock market conducts Muhurat trading session. This tradition dates back to the founding of the Bombay Stock Exchange as the trading community believes that it is a good time of the year to invest and Muhurat trading brings prosperity and wealth throughout the year. 

Before the commencement of the Muhurat trading session, investors place token orders and buy stocks for their children. These stocks are usually never sold. During the session, the traders normally book their intra-day profits regardless of its value or volume. On Diwali, the traders first perform Lakshmi Puja and later conduct the Muhurat trading session. 

The traditional business community opens their books of account on Diwali and Muhurat trading in the Indian stock market is a tradition to commemorate the start of new Samvat. On the BSE, the tradition was started in 1957 and in 1922 on the NSE. 

Stock markets are open every day of the week except on the festivals and national holidays. However, the bourses are open on Diwali for an hour which is called as Muhurat tradition. Muhurat trading session is held for an hour on the evening of Diwali. The hour is considered an auspicious time for making investments and creating wealth. 

This year, on the bourses, trading in the equity and equity derivative segment will start at 6:15 pm and end after an hour at 7:15 pm. Meanwhile, the pre-open session will commence at 6:00 pm and last till 6:08 pm. The special trading window opens following Hindu Panchang as it marks the beginning of a new Samvat. 

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