Stock market open on Diwali? Check Muhurat trading schedule
What's the story
India's leading stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), have announced a special one-hour Muhurat trading session on November 1.
The unique event, held during an auspicious time on Laxmi Puja during Diwali, will be the only trading activity for the day as regular sessions will remain closed due to Diwali celebrations.
The Muhurat trading session will begin at 6:00pm and conclude at 7:00pm.
Historical significance
BSE was the first to formalize Muhurat trading in 1957
The BSE was the first to formalize Muhurat trading in 1957, followed by NSE in 1992.
This age-old tradition stems from the belief that investments made during this auspicious period will bring prosperity for the upcoming year.
In India, stockbrokers consider Diwali as their financial year's beginning and many investors see buying stocks during this time as a way to invite wealth for the forthcoming year.
Trading scope
Muhurat trading: A diversified platform for investors
The Muhurat trading session spans across all market segments such as equity, commodity derivatives, currency derivatives, equity futures and options (F&O), securities lending and borrowing (SLB), etc.
The Multi Commodity Exchange of India (MCX) has also announced its participation in Muhurat trading on the same day and time.
This gives traders a diversified platform to expand their portfolios, open new settlement accounts during the special session.
Market performance
Muhurat trading: A history of positive returns
Historically, Muhurat trading sessions have given positive returns with the BSE Sensex ending higher in 13 of the last 17 special sessions.
In 2008, amid a global financial crisis, the Sensex surged an impressive 5.86% during this one-hour session.
In the past decade, nine out of 11 Muhurat Trading sessions have witnessed positive market performance. This trend highlights the growth and prosperity potential of these unique trading events.