New Delhi: Diwali is one of the most popular festivals in India, and it is marked by joy and fervour. Apart from the celebrations, this day has a special significance in the share market due to the ‘Muhurat Trading’ session that is held on the festival day every year.
The new Samvat, or Hindu New Year, begins at Diwali. Many investors believe that trades made during Muhurat will bring prosperity for the year ahead.
In view of these sentiments, a special one-hour window is given for investing in the stock market on Diwali. In this special session, investors can easily invest in shares through their demat account.
In 2024, the Muhurat trading session will be held on the evening of November 1, and people can invest in the stock market from 6 p.m. to 7 p.m. However, trading in the market is closed during the day.
During the Muhurat trading session, normal trading occurs in all market segments, and one can trade in derivatives and equity.
Muhurat trading began on the Bombay Stock Exchange (BSE) in 1957 and on the National Stock Exchange (NSE) in 1992.
Before introducing electronic demat accounts, traders participated in Muhurat trading on the exchanges.
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If the history of the last 11 years of Muhurat Trading sessions is reviewed, the stock market will perform positively in 9 out of 11 sessions. Since 2018, the market has consistently given positive returns on the day of Muhurat Trading. Only in 2016 and 2017 did it give negative returns.
In last year’s Muhurat Trading session, the Sensex rose 355 points, or 0.55 percent, to 65,259, and the Nifty 50 index rose 100 points, or 0.52 percent, to close at 19,525. During this period, midcap and smallcap stocks performed better, with the BSE Midcap index giving a return of 0.67 percent and the BSE Smallcap index giving a return of 1.14 percent.
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–IANS
(Photo: BL Soni/IANS)
