There is a tradition of Muhurta trading in the Indian stock market on the occasion of Diwali. Actually, this day is a holiday in the stock exchange. But even on holidays, it is opened especially for one hour in the evening, which is called Muhurta trading. A one-hour special Muhurat trading session will be conducted on stock exchanges BSE and NSE on Friday, November 1, 2024, from 6 PM to 7 PM.
BSE-NSE have announced this in separate circulars on October 20 (Sunday). The pre-opening session will be from 5.45 pm to 6 pm. As per the Hindu calendar year, this session marks the beginning of a new Samvat 2081, which begins with Diwali. It is believed that trading during 'Muhurat' or auspicious hours brings prosperity for investors.
There will be trading in multiple segments like equity-commodity derivatives
The stock market will be closed for regular trading on Diwali, but a special trading window will be open for one hour in the evening. In such a situation, fluctuations are seen in the markets. There will be trading in multiple segments like Equity, Commodity Derivatives, Currency Derivatives, Equity Futures & Options, and Securities Lending and Borrowing (SLB) in the same time slot.
Muhurta trading session is divided into 5 parts
- Block Deal Session: Two parties agree to buy/sell a security at a fixed price and inform the stock exchange.
- Pre-Open Session: In this session the stock exchange determines the equilibrium price. This usually takes about eight minutes.
- Normal Session: In Muhurat trading, this session is of one hour. It is called normal session because most of the trading takes place in it.
- Call Auction Session: Illiquid securities are traded. The criteria for these securities have been decided by the exchange.
- Closing Session: In this, traders/investors can place market orders at the closing price.
On normal days the market opens from 9:00 am to 3:30 pm from Monday to Friday. Pre market session takes place from 9:00 to 9:15. Then normal session till 3:30 pm.
Muhurta trading tradition is about 68 years old
The tradition of Muhurta trading on Diwali in the stock market is about 68 years old. This year, Hindu Vikram Samvat year 2081 is starting from the day of Diwali. Throughout India this festival is considered the most auspicious time to welcome wealth, prosperity and good fortune. Similarly, a similar concept is associated with this Muhurta trading also. Stock market investors consider this day very special to start investing.
Muhurta trading is considered auspicious
In Hindu customs, Muhurta is a time when the movement of planets is considered favourable. Starting any work during the auspicious time ensures positive results.
That is why on the auspicious time of Diwali, when the stock market opens for an hour, many people of Hindu religion start their investments. Most people like to buy stocks as they symbolize Goddess Lakshmi.
According to beliefs, people who trade during this one hour have a better chance of earning money and achieving prosperity throughout the year.
The first Muhurta trading took place in 1957
Muhurta Trading has a history of almost six decades. This tradition started from Bombay Stock Exchange in 1957. Later, it was adopted on the National Stock Exchange in 1992. At that time, there was no online trading. Therefore, during Muhurat trading, traders used to gather to trade in BSE. Although times have changed now, the enthusiasm about Muhurta trading remains intact.
Last year the market had closed with an increase of 354 points
Last year, in the Muhurta trading session, the Sensex closed at 65,259.45 with a gain of 354.77 points (0.55%). Nifty also had a rise of 100.20 points, it closed at the level of 19,525.55. If we talk about the last 5 years i.e. 2019 to 2023, the stock market has closed with gains every time. The Sensex closed with an increase of 525 points in the year 2022, 295 points in 2021, 195 points in 2020 and 192 points in 2019.
Here we are telling you 5 things which stock market investors should keep in mind…
1. Maintain discipline
Making dramatic changes to a portfolio increases risk. Such a habit can have a negative impact on long-term goals. It would be better to ignore the immediate fluctuations in the market and maintain discipline. If changes in the portfolio feel necessary then make small changes.
2. Keep tracking investments
When you invest in multiple types of assets, you may not be tracking all investments regularly. In such a situation, it will be difficult to respond accurately to changing market trends. So if you are unable to track your investments, take the help of a trusted financial advisor.
3. Do not sell shares at loss
Ups and downs are the nature of the stock market. Investors should not panic due to the decline in the stock market. Even if you have invested money in the stock market and have incurred loss in it, you should still avoid selling your shares at a loss, because there is hope of recovery in the market in the long term. In such a situation, if you hold your shares for a long time then your chances of loss will be reduced.
4. Diversify your portfolio
Portfolio diversification is a good way to maintain stable investment value in volatile markets. Diversification means dividing investment among different assets according to risk appetite and goals. Its advantage is that if one asset (like equity) is falling, the simultaneous rise in another asset (like gold) will minimize the loss.
5. Stock basket will be right
In this you create a basket of shares and invest in all these shares. That means, if you want to invest a total of Rs 25 thousand in these 5 shares, then you can invest Rs 5-5 thousand in each. This reduces the risk.
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