Diwali Muhurat trading 2021: All you need to know about the one-hour special session

Like every year on Diwali, this year too the stock market will be closed for trading throughout the day except for an hour for Muhurat trading.

The special session for trading of Equities, F&O, Currencies and Commodities will be allowed between 6:15pm and 7:15pm. Before the session begins, the 5:45pm-6pm window is reserved for the block deal session, followed by the pre-open session between 6pm and 6:08pm.

It is a symbolic and old ritual that has been retained by the trading community. On the BSE, the practice started in 1957 and in 1992 on the NSE.

Also read: How to start investing, trading in the stock market in India

It is a belief that the ‘Muhurat’ is a time when any business or investment churns fruitful results and leads to prosperity. The one-hour trading window is also a way the community pays tribute to Goddess Laxmi.

The trading sessions will be streamed live on Facebook — facebook.com/BSEIndia and Twitter — twitter.com/BSEIndia.

During the last Muhurat, the trading session witnessed the BSE ending at 43,638, citing a rise of 195 points, while the NSE closed at 12,771, citing a rise of 51 points.

Also read: How to start a Demat account in India

Going by the history, stock movement has been less during this one-hour session over the year, while the trading volume has also remained low traditionally. Despite this, the Muhurat trading has always seen a rise in equity indices over the years even though the stock movement and trading volumes has been low due to the small window of one hour only.

Experts say that whether you invest during Muhurat trading or normal days, you should always do your homework and find out as much as you can about a company you are going to invest in. An investor must go through the company’s financials also.

Muhurat is considered a pious time for investment but the experts also warn against trading strategy as the space for profit-booking is also limited.