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Everything About Muhurat Trading

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21 Apr 2025
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JM Financial Services
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Everything about Muhurat Trading - Illustration and Explanation | JM Financial Services

There’s something magical about Diwali - the lights, the sweets, the blessings, and… the stock market? Yes, every year on this festival of wealth and prosperity, traders gather not just around diyas and rangolis, but also around their trading screens. It’s called Muhurat Trading, and for many, it’s more than just buying and selling stocks—it’s a ritual.

Let’s break it down in the most real, easiest way possible. No complicated finance lingo. Just straight-up, heart-to-heart info.

What is Muhurat Trading?

Think of it as a special, one-hour trading session held by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Diwali day. It’s believed that buying stocks during this period brings good luck and wealth for the rest of the year. It’s not just about money—it’s about faith, tradition, and starting the new financial year on an auspicious note.

Why is Muhurat Trading important ?

  • Auspicious Timing: The word “Muhurat” means an ideal time to do something important. It’s like choosing the perfect moment to start something new.
  • Sentimental Value: Many families treat this like a ritual, passing it down through generations.
  • Symbolic Fresh Start: Traders open new books (called “Khata”) during this time. It’s like a financial New Year’s Day.

Even if you’re not super into stocks, there’s something kind of beautiful about combining tradition with investing.

How to do muhurat trading?

It’s not your regular trading day. Muhurat Trading typically lasts for about an hour in the evening. The stock exchanges announce the timing each year and it follows below schedule:

Muhurat Trading Timings

Start Time

End Time

Pre Open

5:45 PM

6:00 PM

Normal Market

6:00 PM

7:00 PM

Block deal session

5:30 PM

5:45 PM

Special Preopen Session ** (For IPO & Relisted security)

5:45 PM

6:30 PM

Normal market open time for stocks in special preopen session

6:45 PM

7:00 PM

Call Auction Illiquid session *

6:05 PM

6:50 PM

Closing Session

7:10 PM

7:20 PM

Trade Modification cut-off time

6:00 PM

7:30 PM

  • Block Deal Session: In this two parties agree to buy/sell a security at a fixed price & inform the stock exchange about it.
  • Pre-Open Session: In this stock exchange determines the equilibrium price (usually around eight minutes)
  • Normal Market Session:- This is where most action happens; the one-hour session where most trading takes place.
  • Call Auction Session :- In this illiquid securities are traded. Security is termed illiquid if it satisfies the criteria set by the exchange.
  • Closing Session :- In this traders can place a market order at the closing price.

During this hour, you can buy and sell stocks just like any other trading day—but with way more excitement and positivity in the air.

Benefits of muhurat trading?

Most investors don’t go all out during Muhurat Trading. They buy small quantities of:

  • Blue-chip stocks (eg. Infosys, TCS, Reliance)
  • Stocks from sectors they believe will grow
  • Gold ETFs (yes, gold makes an appearance again)

It’s less about profit and more about planting a seed for future gains.

Should You Participate?

If you’re even a little bit curious about the stock market, it’s a wonderful time to start. Here’s why:

  • The vibe is positive.
  • You’re not pressured to invest big.
  • It’s a great way to learn and experience the market in a festive spirit.

You don’t need to be a seasoned trader. Just open a Demat account, do a little research, and start small. Even buying one share can make you feel like you’re part of something special.

Final Thoughts :- 

Muhurat Trading is more than just numbers on a screen. It’s a blend of old-world tradition and new-age investing. It reminds us that money isn’t just about wealth - it’s about intention, belief, and hope for a better future.

So this Diwali, while you’re lighting diyas and enjoying sweets, consider joining the celebration on Dalal Street. Who knows? That one share might just bring a little extra sparkle to your portfolio.