On the occasion of Diwali Laxmi Puja on Friday evening, stock exchanges in India will be open for a special one-hour trade, in what is called Muhurat trading. The exchange platforms -- Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) -- will be open for trading on Friday -- from 6.0 pm to 7.0 p.m. The pre-market will open at 5:45 pm. This is when the Samvat 2081, a Hindu calendar year, will start.
The Muhurat trading session typically consists of all the market segments, including equity, commodity derivatives, currency derivatives, equity futures and options (F&O), securities lending and borrowing (SLB), and so on, all within that one special hour.
Muhurat Trading significance
The word 'muhurat' means 'auspicious time', and the session typically lasts an hour in the evening on Diwali, marking the beginning of the traditional Hindu accounting year, Samvat. The significance of muhurat trading is tied to cultural and religious beliefs, where it is considered highly fortunate to begin new ventures on Diwali.
The tradition of Muhurat trading, however, goes back a long time with the belief that investments made during this auspicious time will usher in good returns. Also, the purchase of precious metals such as gold and silver, real estate, electronic items, and automobiles, among others, is specially timed by many on this auspicious day.
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Usually, trading volumes at exchanges are high because lots of orders are placed all across. Last year, the benchmark stock indices soared substantially to brighten the investors' fortunes during the stipulated one-hour period. Data showed the number of investors over the past years has also been rising during this one-hour special trade, and also in general.
(With inputs from ANI)
