Every year, as the festival of lights, Diwali, brings joy and new beginnings, a unique and cherished tradition takes place in the Indian stock market: Muhurat Trading. This special, one-hour trading session is a blend of cultural reverence and financial aspiration, symbolizing prosperity and good fortune for the year ahead.
What is Muhurat Trading?
The word “Muhurat” literally translates to “auspicious time.” For centuries, Indian traders and business communities have marked the beginning of their new financial year, or “Vikram Samvat,” on Diwali by performing special rituals. This tradition has evolved into the modern-day practice of Muhurat Trading, where the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) open for a brief trading period.
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The session is considered an ideal time to make symbolic investments in the hopes of ushering in wealth and prosperity. It’s not just about financial gains; it’s a symbolic gesture of optimism and a positive start to the new year.
The History and Significance of This Auspicious Hour
The practice of Muhurat Trading dates back to 1957 at the BSE, with the NSE adopting it in 1992. Historically, traders would perform Lakshmi Puja (a ritual dedicated to the Goddess of Wealth, Lakshmi) and open new account books, or “Khata,” on Diwali. The modern trading session is a continuation of this custom, with many investors making token purchases of stocks, often for long-term holding or even for their children, as a gesture of inviting good luck.
Muhurat Trading Timings and Schedule for 2025
The exact timing for Muhurat Trading is announced by the stock exchanges a few days before Diwali. The session is usually held in the evening, coinciding with Lakshmi Puja.
The Muhurat Trading session is a special, one-hour trading period. For the year 2025, the session is scheduled for Tuesday, October 21. The exact timings are as follows:
| Session | Time (IST) |
| Pre-open Session | 1:30 PM – 1:45 PM |
| Normal Market Session | 1:45 PM – 2:45 PM |
| Closing Session | 2:55 PM – 3:05 PM |
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How to Participate and What to Trade
Anyone with a Demat and trading account can participate in Muhurat Trading. The process is the same as regular trading; you can buy and sell stocks, futures, options, and other securities. Some brokerage houses even offer a brokerage-free trading window during this hour.
Popular investment choices during this session include:
- Blue-chip stocks: High-quality, fundamentally strong companies like Infosys, Reliance, and TCS.
- Gold ETFs: A traditional way to invest in gold on this auspicious occasion.
- Quality stocks for long-term investment.
Benefits and Risks of Muhurat Trading
Benefits
- Auspicious Start: It’s considered a highly favorable time to start new investments.
- High Liquidity and Volume: The festive sentiment often leads to a surge in trading activity and high liquidity, making it easier to buy and sell.
- Positive Market Sentiment: The celebratory atmosphere often creates a bullish market trend, which can be an opportunity for profitable trades.
Risks
- Market Volatility: The short duration and high trading volume can lead to sudden price fluctuations.
- Impulsive Decisions: The festive excitement can sometimes lead to emotional and impulsive trading without proper research.
- Limited Time: Day traders have a very small window to initiate and close their positions, which might not be enough for a well-thought-out strategy.
Final Thoughts
Muhurat Trading is a unique event that beautifully merges India’s cultural heritage with its modern financial markets. While it’s a time for celebration and symbolic investments, it is crucial to remember that fundamental market principles and risk management still apply. Whether you’re a seasoned investor or a newcomer, approach Muhurat Trading with a clear mind and a well-defined strategy. After all, the best beginnings are those made with both faith and foresight.
