Muhurat Trading

Diwali (Deepavali in Sanskrit, meaning “row of lamps”; also spelled Divali or Deepavali) is a Hindu festival of lights One of the most popular festivals of Hinduism, Diwali symbolises the spiritual “victory of light over darkness, good over evil and knowledge over ignorance. “During the celebration, temples, homes, shops and office buildings are brightly illuminated with Diya’s and lamps. for most Hindus, Guajarati’s and Marwardis, the calendar New Year starts with this festival. Indian Stock Markets are dominated by Brokers within their communities. Hence, Diwali is an auspicious festival that they look forward to every year. The festival of Diwali is celebrated across country with everyone welcoming the goddess of wealth, Lakshmi, to their house. It is considered an auspicious time to earn and spend money. And since wealth creation is a big function of the Stock Market, the Stock exchanges open a special trading session for Muhurat that marks the beginning of the traditional New Year.

The Name Muhurat itself means “Auspicious Hours”. Muhurat trading is one of the oldest customs at the Stock Market. The schedule of the Muhurat trading is announced by the stock exchange beforehand. With this, the traders on Dalal Street welcome the New Year on a positive note. Stock brokers perform ‘Lakshmi Puja’ at the exchange and the customary Muhurat trading takes place Investors place token orders and generally book profits during the Muhurat trading. Volumes are usually very less as most are only making a symbolic or purchase, along with the Stock exchanges, Investors also indulge in commodity exchanges during this time. Most of the times SENSEX and NIFTY generally tend to end with a positive note on this day, even if one buys stock with a small margin. Trading on Diwali day is a tradition that involves more of a sentimental value than a real portfolio benefit. Muhurat trading is also the perfect timing for first time Investors to invest in stock markets for long term prospective.

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