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:

 

Market Schedule	Start Time	End Time
Equity
Pre Open*	1:30 PM	1:45 PM
Normal Market	1:45 PM	2:45 PM
Block Deal Session	1:15 PM	1:30 PM
Closing Session	2:55 PM	3:05 PM
Trade Modification Cut-off	1:45 PM	3:15 PM
Derivatives
F&O, Currency, MCX	1:45 PM	2:45 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.

 

Summarizing Muhurat Trading performance in India over the past 10 years:

2023: Sensex rose 0.55%, with 28 out of 30 Sensex stocks gaining.

2022: Markets were bullish—Nifty gained 0.88%, the best Diwali session in recent years.

2021: Both Sensex and Nifty closed up 0.49% on Muhurat trading day.

2020: Markets posted a 0.45% rise, continuing the festive optimism.

2019: Nifty added 0.49%; Diwali session again favored the bulls.

2018: Nifty climbed 0.7%, with broad sectoral support seen in the session.

2017: The only notable dip—Nifty fell 0.6% on the Muhurat trading day.

2016: Sensex and Nifty remained nearly flat, closing just 0.04% down.

2015: Sensex registered a 0.48% gain, reinforcing the auspicious market sentiment.

2014: Muhurat trading ended with Sensex up by 0.24%, marking another positive year.

 

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.

 

FAQs:-

Q1. When is Muhurat Trading?
Muhurat Trading is conducted on Diwali day every year, usually in the evening during Laxmi Pujan. The exact muhurat trading time is announced by NSE and BSE a few days before the festival.

Q2. Is options trading allowed in Muhurat Trading?
Yes, you can trade in options and futures during the Muhurat Trading session, just like in a regular market day.

Q3. Which stocks to buy in Muhurat Trading?
Many investors prefer blue-chip stocks, banking & financial companies, consumer goods (FMCG), IT, and pharma stocks. The choice depends on your investment goals. JM Financial Services research can guide you in selecting the right stocks for Muhurat Trading.

Q4. Can we trade in options during Muhurat Trading?
Yes, options trading is allowed. Traders often use this session to initiate or square off positions in derivatives.

Q5. Is intraday allowed in Muhurat Trading?
Yes, intraday trading is allowed. However, given the short session (usually 1 hour), many investors use this time for symbolic trades rather than heavy intraday positions.

Q6. What to buy in Muhurat Trading?
You can buy quality stocks for long-term investment, start a Stock SIP, or invest in sectoral opportunities like banking, IT, or consumption-driven stocks.

Q7. Can we sell shares on Muhurat Trading?
Yes, you can sell shares. The market functions like a regular session, so both buying and selling are allowed.

Q8. Is Muhurat Trading real?
Yes, Muhurat Trading is very real. It is conducted officially by NSE and BSE, and all trades are settled like any other trading session.

Q9. What is Shubh Muhurat Trading?
“Shubh Muhurat Trading” is another way of referring to Diwali Muhurat Trading. It means trading during the auspicious hour on Diwali, believed to bring wealth, prosperity, and long-term success.