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The National Stock Exchange (NSE) will hold its annual Diwali Muhurat trading session on Friday, November 1, 2024, from 6:00 PM to 7:00 PM, marking the start of the Hindu calendar year, Samvat 2081. While regular trading will remain closed for Diwali, the special one-hour Muhurat trading session will be open in the evening. A pre-opening session is scheduled from 5:45 PM to 6:00 PM, just before the main trading window.
The Muhurat trading session is considered an auspicious time, rooted in tradition and aligned with favorable planetary positions. This one-hour trading window has long symbolised a fresh start for businesses as investors make new financial commitments under the glow of Diwali festivities. Historically, these sessions have often delivered positive returns.
Notably, the BSE Sensex has closed higher in 13 of the past 17 Muhurat sessions. While trading volumes tend to be lower during this time, certain years have defied expectations. For instance, in 2008, the Sensex surged 5.
86% during Muhurat trading, despite global financial turbulence. From 2012 onwards, the Sensex has ended in positive territory in 9 of 12 Muhurat trading sessions. The most recent session on November 12, 2023, saw a gain of 355 points, or 0.
55%. However, the period following Muhurat trading has not always been as favorable, with the index dipping in 7 out of the past 11 years. Muhurat trading holds deep significance for investors and brokers, symbolising the financial new year.
Many believe that investing during this session brings prosperity and growth. It also serves as an opportunity to diversify portfolios and open new settlement accounts, reflecting optimism and renewed confidence in the market for the year ahead. For those planning to participate, it is essential to keep the session’s short duration and potential volatility in mind.
Intraday positions will be automatically squared off 15 minutes before the market closes, demanding careful strategy and timing. For long-term investors, the session offers a chance to kickstart new investments or adjust portfolios, while the festive atmosphere adds a unique excitement to this traditional stock market event..
