Muhurat Trading: A Symbolic Session for Hindu Diwali Celebrations

Strategic Insights -

As the Hindu financial year is set to begin on Diwali 2025, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed on October 21 and 22, with a one-hour Muhurat Trading session scheduled for the afternoon. This traditional ritual marks the start of the Hindu New Year, symbolizing renewal, prosperity, and good fortune. Despite being a short and often volatile session, experts observe that the Muhurat Trading has historically been positive for markets, with the BSE Sensex closing higher in 14 out of the last 18 sessions.

Key Takeaways:

  • The BSE and NSE will remain closed on October 21 and 22 for Lakshmi Puja and Balipratipada, with Muhurat Trading taking place from 1:45 PM to 2:45 PM on October 21.
  • Muhurat Trading is a symbolic session, meaning it is more cultural and financial ritual than profit-driven.
  • The session marks the start of Hindu New Year (Samvat 2082), representing renewal, prosperity, and good fortune.
  • Historically, the BSE Sensex closed higher in 14 out of the last 18 Muhurat Trading sessions.
  • The session allows trading across equities, futures and options, currency and commodity derivatives, and securities lending and borrowing (SLB).
  • This year's session will be held in the afternoon, with trade modifications allowed until 2:55 PM.
  • The Muhurat Trading has been observed to be positive even during turbulent periods, with the Sensex rising 5.86% during the 2008 financial crisis.
  • Investors view the session as a cultural and financial ritual, with many believing that investments made during this auspicious hour can bring prosperity and good fortune for the year ahead.
  • This year, the session's schedule has been seen as a change from recent years, where it was typically held in the evening.

Statistics:

  • The BSE Sensex closed higher in 14 out of the last 18 Muhurat Trading sessions.
  • The Sensex rose 5.86% during the 2008 financial crisis, observed during Muhurat Trading.

Sources:

  • Times of India: "Muhurat Trading: What is it and why it matters for investors"
  • Economic Times: "Muhurat Trading: A tradition with a twist"