Before we explore the meaning of Muhurat trading, let’s understand the term “Muhurat.” In Hindu tradition, “Muhurat” signifies an auspicious moment when planetary positions align favorably to bring positive outcomes.
Muhurat Trading is a special tradition observed by traders in India. It refers to a one-hour window on Diwali day that is considered auspicious for investing in stocks. Each year, the stock exchange announces the specific timing for Muhurat trading.
Many believe that trading during this time can bring prosperity and wealth for the coming year. Traditionally held in the evening of Diwali, this period is when people often invest in stocks as a symbolic offering to Goddess Lakshmi. This unique custom is specific to the Indian stock markets.
What Happens in Muhurat Trading?
During Muhurat Trading on Diwali, both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) allow trading for a short, designated period. This session is usually divided into several parts:
- Block Deal Session – In this segment, two parties agree on buying or selling a security at a predetermined price and notify the stock exchange of the transaction.
- Pre-Open Session – This short session, usually lasting around eight minutes, helps the stock exchange determine the equilibrium price.
- Normal Market Session – The main one-hour session where most trading activity occurs.
- Call Auction Session – In this segment, illiquid securities, or those meeting specific criteria set by the exchange, are traded.
- Closing Session – Investors and traders can place market orders at the closing price during this final segment.
Muhurat Trading Timings 2024
Muhurat Trading will be conducted on Friday, November 01, 2024. Timings of Muhurat Trading are as follows:
Diwali Muhurat Trading Session on Friday, November 01, 2024 | Start Time | End Time |
Pre Open* | 17:45 hrs | 18:00 hrs |
Normal Market | 18:00 hrs | 19:00 hrs |
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