The long-standing tradition of Indian businesses is to welcome the Indian New Year with an inauguration ceremony known as Muhurat. "Muhurat" is a sanskrit word which is used to denote the most auspicious time to start any new work. One "Muhurat" roughly measures to one-thirteenth of the total day time.
The same ritual is followed by the stock market and traders. On Diwali, a trading session is held in the evening and most traders buy on this day considering it to be prosperous and fortunate for the upcoming year. Many newbies even start their career on this day, with a belief of embracing goddess “Lakshmi” in their life.
This year too “the Muhurat” timing is decided according to the planetary movements, and will last for an hour in both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Since the stock market is closed for the rest of the day, stock prices tend to move in the Muhurat session to reflect the domestic and global news-flow.
Stockbrokers commemorate this day with great zeal and enthusiasm. Stock brokers decorate their offices, wear new clothes and start the day by distributing sweets and even their family members join the prayer held in the office. On this day, they also close their old account books and new account books are opened with the introduction of the new Samvat and the first token order, that is usually a ‘buy’, is then punched in.
Like previous years’ trend, this year also some stocks will make “Dhamaka” on Muhurat trading and are likely to outperform the market and bring success to the traders.
One such stock is Maruti Suzuki India Ltd. (NSE Code: MARUTI). This stock has a history of giving bullish trend on this day and makes good profits for the traders. This year it is expected to reach a level of Rs7990 from current market price Rs7885.
Though this day has mostly proven to be a good day for all traders and bring luck, it is still advisable to traders to invest with sound research and analysis and make this day a kick start for the year ahead.