Muhurat Trading 2024: Know the date, time and importance of this special trading session on Diwali

The festive season is in full swing, and as India gets into a celebratory mood, investors eagerly await the Muhurat Trading session held each year on the occasion of Diwali.

Here’s a look at the date, time and importance of Muhurat Trading:

What is Muhurat Trading?

The word ‘Muhurat’ means an auspicious time. As per Hindu traditions, Muhurat is an auspicious period decided as per the planetary positions based on astrological reading. It’s believed that the auspicious period brings good luck and it’s the most suitable time for new beginnings.

Muhurat Trading is a special one-hour trading session held for investors on the day of Diwali. This session is generally held in the evening during the auspicious period of Laxmi Pujan on Diwali.

During the special trading session, the BSE and NSE remain open only for one hour, and investors participate in token trades to mark the start of the new Samvat, or new year, as per the Hindu calendar. This year, Muhurat Trading will mark the beginning of Samvat 2081.

During the special trading session, investors can buy and sell stocks and trade in futures & options and other market securities.

Muhurat Trading date and time

The stock exchanges specify the time of Muhurat Trading for every year. Muhurat Trading session 2024 will be held on Friday, November 1. The special trading session will be held from 6:00 pm to 7:00 pm. The stock exchanges also conduct a 15-minute pre-open session starting 5:45 pm. The trades taking place during the special trading session are also settled on the same day.

Apart from normal trading session, other market session timings are as follows (Source: NSE circular) However, investors should note that the markets will not remain open during the usual trading hours on account of the Diwali holiday on November 1.

Importance of Muhurat Trading

Stockbrokers in India traditionally start their new year on the day of Diwali. Muhurat Trading is considered an auspicious occasion to trade and invest in stocks. Generally, investors believe that buying stocks during Muhurat Trading can bring them good luck, prosperity and wealth throughout the year. Some stock traders also open new settlement accounts on Diwali.

Muhurat Trading also presents an opportunity for experienced investors to diversify their portfolios by buying new stocks and increasing their holdings in existing stocks. Investors must note that Muhurat Trading is a one-hour trading session, and market movements could be volatile.