The Indian stock market is currently growing and surging upwards. So it has become a good option to invest in securities or trade in indices for traders and investors. The regular trading time in India runs from 09:15 A.M. to 03:30 P.M. So, what about Muhurat Trading, then? Is it different?
Muhurat Trading is conducted on the auspicious occasion of Diwali every year. The Muhurat Trading Session usually starts in the evening session for 1 hour and the exact time is notified to traders and investors two/three weeks before Diwali. How is it different from Regular Stock Market Trading, then?
Let’s find out.
Diwali is one of the most celebrated and an auspicious festival in India. It also marks the beginning of the “Hindu New Year.” So making new investments, and acquiring new assets is considered to be very auspicious during this festival as people believe the Goddess of Wealth and prosperity, Laxmi ji will enter their lives. As this sentiment is so prevalent among the investing community, the stock exchange conducts a special 1-hour trading session every Diwali called “Muhurat Trading.”
The word “Muhurat” itself suggests that it is an auspicious time. The tradition of Muhurat Tradings started way back in 1957 by the Bombay Stock Exchange (BSE) and later on, it was adopted by the National Stock Exchange (NSE) in 1992. There are so many communities involved in the stock market, so there are many traditions for this day.
Some brokers open new settlement accounts for their clients because of this auspicious hour. Some worship their books on the account of Diwali. To put it in a general perspective, people believe it is an auspicious time to buy shares for long-term investments, especially in the name of family members.
Muhurat Trading is usually conducted on the day of Diwali in the evening session. Muhurat Trading 2024 will be conducted on 1st November 2024 and the exact timing shall be notified to investors and traders before 2-3 weeks of Diwali.
Muhurat Tradings is a special trading session conducted on the occasion of Diwali, whereas regular trading refers to the usual daily trading sessions on stock exchanges. While both sessions involve the buying and selling of securities, they differ in several aspects.
Here are the key differences:
Regular trading sessions occur daily from Monday to Friday, typically starting at 9:15 AM and ending at 3:30 PM IST on Indian stock exchanges. The session includes a pre-open market, normal trading hours, and a closing session.
Muhurat Trading is a special, short session that lasts for about an hour. The exact timing varies each year and is announced by the stock exchanges based on auspicious timings (Muhurat). It usually occurs in the evening, aligning with Diwali celebrations.
Regular trading sessions are driven by regular market dynamics, including economic data, corporate earnings, and global events. The primary focus is on financial transactions and investment strategies.
Muhurat Trading is symbolic and is considered an auspicious time to trade, aligning with the cultural and traditional significance of Diwali. Many investors participate for ceremonial reasons, making small, symbolic investments to mark the start of a new financial year or to invoke prosperity.
Market sentiment during regular stock market trading can vary significantly based on news, economic indicators, and investor behavior. It can be bullish, bearish, or neutral depending on various factors.
The sentiment during Muhurat Trading is generally optimistic. The festive atmosphere and the belief in auspicious beginnings create a unique market environment, often leading to a temporary uplift in stock prices.
Regular trading sessions usually have higher trading volumes and liquidity due to the participation of a wide range of investors, including retail, institutional, and foreign investors.
Diwali Muhurat Trading typically sees lower trading volumes compared to regular sessions. The session’s symbolic nature and shorter duration mean that fewer transactions occur, and liquidity may be limited.
Standard regulatory procedures apply, including market surveillance, margin requirements, circuit breakers, and settlement processes. Regular trading days are subject to routine market announcements and news releases.
Diwali Muhurat Trading follows the same regulatory framework but may have specific procedures for reporting and compliance given its unique timing. The session is often seen as an exception, with special announcements from exchanges and SEBI, the market regulator.
Investor behavior during regular stock market trading is influenced by financial goals, market analysis, and economic conditions. Investors typically make decisions based on long-term strategies, short-term opportunities, or speculative moves.
Participation in Muhurat Trading is often more ceremonial than strategic. Many investors, especially retail investors, make small, token investments to honor tradition rather than to achieve significant financial gains. The session may also attract those who wish to experience the market in a unique setting.
Regular Stock Market Trading has a significant impact on market trends, stock prices, and investor portfolios. The cumulative effect of daily trading sessions shapes the long-term trajectory of the stock market.
The impact of Diwali Muhurat Trading on the market is typically short-lived. While it can result in a temporary spike in stock prices due to positive sentiment, it does not significantly influence long-term market trends or valuations.
| Factors | Regular Trading | Muhurat Trading |
| Timing and Duration | 9:15 AM – 3:30 PM IST, Monday to Friday | Typically around 1 hour in the evening on Diwali |
| Purpose | Primarily financial, driven by market dynamics | Symbolic and ceremonial, with cultural and religious significance |
| Market Sentiment | Varies based on economic and market conditions | Generally optimistic |
| Trading Volume | Higher volume due to regular participation | Lower volume, with more symbolic investments |
| Regulatory Framework | Standard regulatory rules and market surveillance apply | Same regulatory framework, but with specific session timing |
| Investor Participation | Wide range, including retail, institutional, and foreign investors | Predominantly retail investors, with ceremonial participation |
| Market Impact | Significant impact on market trends and stock prices | Minimal long-term impact, short-term price fluctuations possible |
Muhurat Trading, held on the auspicious occasion of Diwali, is deeply rooted in Indian cultural and religious traditions. It is not just a regular trading session but a ceremonial event that combines finance with spirituality and cultural practices. Here are some key rituals and beliefs associated with Diwali Trading Muhurat:
The term “Muhurat” refers to an auspicious time chosen for significant activities, believed to bring good luck and prosperity. During Diwali, the Muhurat Trading session is scheduled based on astrologically favorable timings. It is believed that trading during this specific period can lead to positive outcomes and financial success.
Many investors and traders, particularly those from business communities, see Muhurat Trading Diwali as the start of a new financial year. It is a common practice to open new trading accounts or financial books on this day, symbolizing a fresh beginning and the welcoming of wealth and prosperity.
Lakshmi, the Hindu goddess of wealth and prosperity, is worshipped during Diwali. Before the Muhurat Trading session begins, many traders and investors perform Lakshmi Pujan at their offices, homes, or on the trading floor. This ritual involves offering prayers, lighting lamps, and making offerings to seek the goddess’s blessings for wealth and success in the coming year.
It is a common practice for investors to make small, token investments during Muhurat Trading Diwali, irrespective of market conditions. This act is considered a good omen, symbolizing the start of a prosperous journey. The emphasis is more on the act of investing rather than the financial returns.
Exchanging gifts and sweets is an integral part of Diwali celebrations, and this tradition extends to Muhurat Trading as well. Some investors gift shares or financial instruments to family members or friends, symbolizing the sharing of wealth and good fortune.
The atmosphere during Muhurat Tradings is festive and celebratory. It is a time for investors and traders to come together, often in traditional attire, to mark the occasion. Stock exchanges may also be decorated, and special events or ceremonies may be organized, adding to the festive spirit.
Many traders and investors seek the blessings of elders and family members before participating in Muhurat Tradings Diwali. This is seen as a way to honor traditions and seek guidance and good wishes for the financial endeavors ahead.
On this auspicious day, it is believed that negative actions, such as arguments or unethical practices, should be avoided. The focus is on positivity, ethical trading, and harmony, reflecting the values of Diwali and the spirit of the occasion.
Also Read: Significance of Muhurat Trading on The Indian Stock Market
While regular trading sessions offer consistency and a routine trading environment, Muhurat trading provides a unique opportunity for participants to engage in trading with a spiritual and auspicious mindset. The decision to participate in either session depends on individual preferences, investment goals, and belief systems that guide trading activities.
For Muhurat trading 2023 not only has sentimental value but also the stock market dynamics has impacted to some extent. The positive sentiment and increased trading activity during this auspicious session can influence market trends, stock prices, and overall investor sentiment in the short term. Traders often observe the market behavior post-Muhurat tradings to gauge the momentum for the upcoming days.
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Written by Jainam Admin
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Muhurat trading holds immense significance in the Indian stock market as it is considered an auspicious time to invest and trade. Participants believe that trading during this time can bring prosperity, wealth, and favorable outcomes in the coming year.
The primary difference between Muhurat trading and regular trading sessions lies in the timing and duration of the sessions. While regular trading occurs on all working days within specified hours, Muhurat trading is a special and brief trading session conducted on auspicious occasions such as Diwali. The sentiment, beliefs, and auspicious nature associated with Muhurat trading make it unique.
The Muhurat trading time for Diwali varies each year and is announced by the stock exchanges in India. Usually, it is a one-hour trading session in the evening on the day of Diwali, allowing participants to make investment decisions and trade during this auspicious window.
For beginners participating in Muhurat trading, it is essential to stay updated about market trends, conduct thorough research, set realistic goals, and have a well-thought-out trading plan before taking part in Muhurat Trading.
Muhurat trading, with its aura of positivity and auspiciousness, can impact stock market trends and investor sentiment to some extent. The increased trading activity during this session, along with the sentiment of new beginnings and prosperity, can influence stock prices, and market dynamics in the short term.
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