What Is Muhurat Trading? The Diwali Trading Session
Muhurat trading is a special, symbolic trading session the NSE and BSE conduct on the evening of Diwali, even though the markets are otherwise a holiday that day. It marks the beginning of Samvat, the Hindu accounting/new year, and is considered an auspicious time to start fresh investments.
Timing and format
The session typically runs for about an hour in the evening (the exact one-hour window is announced by the exchanges each year). Normal trading rules apply — it's a real session with real settlement, just short and ceremonial.
Why investors take part
- Tradition: many buy a token quantity of shares for good fortune.
- Long-term intent: some pick 'Samvat' stock ideas they plan to hold for the year.
- It's a cultural ritual as much as a financial one.
Reading the session in the data
Muhurat trades still produce official prices and volumes, so they appear in end-of-day price history like any other session. Volumes are usually thin, so don't read too much into single-day moves. See also the regular market trading hours.