'Muhurat Trading' for Diwali on October 21: Check timings
What's the story
The National Stock Exchange (NSE) has announced a special 'Muhurat Trading' session on the occasion of Diwali. The event will take place on October 21, between 1:45pm and 2:45pm. This year, the pre-opening session will be held from 1:30pm to 1:45pm as opposed to the evening timing it usually follows.
Tradition
Muhurat Trading to cover multiple segments
Muhurat Trading marks the start of a new Samvat, or Hindu calendar year. It is believed that trading during this auspicious hour brings prosperity and financial growth to stakeholders. The session will cover various segments like equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB).
Market closure
Stock market closed for regular trading on Diwali
The stock market will be closed for regular trading on Diwali, except for this special one-hour session. All trades executed during this time will result in settlement obligations. Despite being a short session, Muhurat Trading is conducted with full formality and recorded like any other trading day. It is considered auspicious to invest during this period, with many investors buying shares for long-term holding or as part of a family ritual.
Market trends
Last year's trading session ended on positive note
Historically, the Muhurat Trading sessions have yielded positive returns, even if trading volumes are relatively low. In the last 16 years, indices have ended in the green in 13 of these sessions, highlighting the favorable trend this event brings. Last year, Sensex and Nifty ended the Muhurat Trading session on a strong note, with the former closing up by 335 points or 0.42% at 79,724 while Nifty gained 99 points or 0.41% to end at 24,304.