Muhurat trading: How to invest without a demat account today
What's the story
Muhurat trading, a special stock trading session on Diwali evening, is seen as an auspicious time to invest for the long-term.
The one-hour session will kick off today at 6:00pm (pre-open at 5:45pm), allowing you to invest in equities, equity F&O, currency F&O, and commodities.
However, this tradition isn't restricted to demat account holders, as investors without one can still invest in the stock market via mutual funds.
Options
Alternative investment options during Muhurat trading
You can invest in mutual funds during Muhurat trading. However, settlement follows the T+2 cycle, delaying the actual unit allocation in your account.
Gold Exchange-Traded Funds (ETFs) can also be purchased without a demat account, though through brokerage houses or online platforms. Settlement still follows the T+2 cycle.
Investing in a Nifty 50 ETF indirectly through a Fund of Funds scheme may be possible with certain brokers, potentially without requiring a demat account.
Historical significance
BSE introduced Muhurat trading in 1957
The Bombay Stock Exchange (BSE) introduced Muhurat trading in 1957, a tradition later adopted by the National Stock Exchange (NSE) in 1992.
Historically, Muhurat trading sessions have been associated with positive market sentiment. In 13 of the last 17 sessions, Sensex has closed higher.
Over the past decade, nine out of 11 such sessions have witnessed positive market performance, underlining the potential for growth and prosperity during these special trading events.