Investors and traders in India are gearing up for the much-anticipated Muhurat Trading session, a unique trading opportunity that coincides with the auspicious occasion of Diwali. This year, the special trading window is scheduled for November 1, 2024, from 6 PM to 7 PM. The session will be held on Laxmi Pujan Day, marking the beginning of the new Samvat year, Samvat 2081.
Traditionally observed on Diwali, Muhurat Trading is considered a time to invoke blessings from Goddess Laxmi, the deity of wealth. Investors believe that trades made during this hour will bring prosperity throughout the year. The practice began with the Bombay Stock Exchange (BSE) in 1957 and has since been adopted by the National Stock Exchange (NSE) and other exchanges, making it a significant event in the financial calendar.
The Muhurat Trading session will feature all market segments, including equities, commodities, currency derivatives, and futures and options. The pre-opening session will commence at 5:45 PM, allowing traders to prepare for the main trading hour. Notably, all intraday positions will be squared off 15 minutes before the session ends to ensure a smooth close.
Despite its ceremonial nature, Muhurat Trading can influence market sentiment. Historically, stocks tend to perform well during this period due to the optimistic outlook associated with Diwali. However, investors are advised to approach this session with a long-term perspective rather than expecting immediate gains.
As part of this festive trading experience, many retail investors engage in small transactions as a symbolic gesture of starting fresh in the new financial year. While participation is voluntary, it has become a cultural norm for many traders who wish to align their financial activities with traditional beliefs.
In summary, while the stock market will remain` closed on November 1 for regular trading due to Diwali celebrations, the Muhurat Trading session offers a unique opportunity for investors to start their financial year on an auspicious note.
