Diwali, the festival of lights, marks the beginning of the traditional Hindu accounting year. The Indian Stock exchanges NSE or BSE hold a special symbolic trading session on the occasion of Diwali, which is called Muhurat Trading. This one-hour trading session is considered auspicious as it marks the beginning of the traditional Hindu accounting year. Here is what you should know about Muhurat Trading.

What is Muhurat Trading?

The word muhurat means ‘an auspicious time’. According to the Hindu calendar called Samvat, this is the auspicious one-hour trading session for the Indian stock market that is held on the day of Diwali and the time for the same is specified by BSE or NSE every year. It is believed that investing or trading on this occasion can bring you wealth and prosperity throughout the year.

History and Significance of Muhurat Trading.

Stock trading on this day is an old symbolic ritual that the trading community has followed for more than half a century now. BSE, Asia’s oldest stock exchange, has been holding Muhurat Trading since 1957 and NSE since 1992. Worshipping the books of account and cash chests on this occasion is common in India. Every year, investors and traders perform ‘Chopda Pooja’ i.e. worshipping of the books of account at stock exchanges, before ‘Muhurat Trading’.

Muhurat Trading Timings in 2020?

Both BSE and NSE announce the one hour time slot for Muhurat Trading, which is held in the evening. In the year 2020, it will be held on Saturday, 14th November, from 6:15 pm to 7:15 pm. A block deal session will precede this main session and the pre-opening session between 5:45 pm to 6:00 pm. Traders have been advised to login between 5:15 pm to 5:45 pm.

Why is it important?

The Muhurat Trading day is considered to be quite auspicious to invest one’s money or to make a new beginning. Diwali marks the starting of the new accounting year, and the trading done on this day is considered to bring prosperity and wealth with the blessings of Goddess Laxmi. Further, it’s a very promising time to plan your investment for the upcoming year with long-term equity investments to achieve your financial goals.

Benefits of Muhurat Trading

Muhurat Trading is not only the time to simply make a buy or sell of stocks. Instead, use this time to plan your future trading strategy. Here are some ways in which you can benefit from the Muhurat Trading session:

1. Start a new beginning in the stock market: If you are new to the stock market, use the occasion of Muhurat Trading to start your trading journey. You could do so by investing a small amount on this day. Once you gain some trading experience, you could increase your trading to include more securities in your portfolio.

2. Gain from the bullish trend: It is believed that Muhurat Trading brings in a bullish trend and therefore it makes sense for an intraday trader to buy and sell the shares on the same day. However, one must be cautious and should make decisions based on sound analysis and not be driven by superstition and sentiment alone.

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