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All You Need To Know About Muhurat Trading During Diwali

22 Oct 2019

Muhurat trading is one of the most anticipated events that traders and investors look forward to on the auspicious occasion of Diwali. Why Diwali? It is believed that Muhurat trading during Diwali brings wealth and prosperity throughout the year and since Diwali marks the beginning of the new year (for Gujaratis and Marwaris – the two most dominant communities in the stock broking community in India), there can be no better occasion than this.

The word ‘Muhurat’ itself means an auspicious time, which is mostly followed by Indians when they wish to start any work, undertake a journey or just about anything else. If you have been in India, you are probably quite familiar with the word – ‘Shubh Muhurat’. When it comes to stock market trading and investing, everyone looks for a ‘shubh muhurat’.

Muhurat trading is usually held during evening for an hour where the broking community performs Lakshmi puja and executes certain trades during this period. The exact time of this auspicious hour is not fixed and is usually declared by the stock exchange few days before Diwali. This is one of the most sought-after events by trader during Diwali. For getting the best recommendations for Muhurat Trading, one should consult with investment advisors for making better investment decisions.

Beginning of Muhurat Trading

Muhurat trading has been going on since stock market trading commenced in BSE (in 1957) and NSE (in 1992). One of the reasons behind the market ending on a positive note during this hour-long trading session is that people prefer to buy rather than sell and orders.

Tradition of Muhurat Trading

For trading communities belonging to Northern India, Diwali marks the beginning of the new financial year. As is evident in the Hindu culture, the festivities begin with a puja (performed to the account books and vaults) during Dhanteras and Diwali. It is customary to place a coin on the account books as the coin represents wealth. After this, the stockbrokers perform a puja for the Goddess Lakshmi. Once the ceremonies are completed and the prayers are offered, the auspicious hour of Muhurat Trading commences.

Many new investors try to initiate their first time buying on this day. Even though the volumes tend to remain light, traders look to profit from the generally positive stock movement. The time fixed by the stock exchange for Muhurta trading is usually in Amrit Yoga, and the trade taken is known as “Shagun ka Sauda” by traders.

Performance During Muhurat Trading in 2018

Last year, the stock markets made minor gains while gold prices dropped by over INR 200 during Muhurat Trading. It is interesting to note that Sensex closed around 250 points higher while Nifty gained around 70 points during this auspicious trading hour. At the end of the one-hour muhurat trading, Sensex was up 245 points at 35237.68 while the Nifty closed 68.40 points higher 10598.40. The hour long session was marked by the majority of the traders buying IT and Pharmaceutical stocks.

Muhurat Trading 2019

Muhurat trading will be held on 27th October 2019 between 6:15pm and 7:15pm. The session will be conducted by both NSE and BSE. Circulars for the same have also been shared by the respect stock exchanges. A representative of NSE said, “All trades executed in this Diwali Muhurat trading session would result in settlement obligations.”

Are you prepared to make the most of this year’s Muhurat Trading? Have you picked your favorite stocks to invest in? In case you are still in doubt, get in touch with CapitalVia today to get expert advice on stock market and get recommendations for Muhurat Trading. Make the most of your investments with our research driven advice and more than a decade of experience in helping traders and investors make informed trading decisions.

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