Diwali Muhurat Trading 2024: Is it on 31st October or 1st November? Check date, other details here | Stock Market News
Source: Live Mint
Diwali Muhurat Trading 2024: As India enters the festive season, the stock markets are getting ready for the annual Muhurat Trading session, a special one-hour event held on Diwali.
Date, time for Muhurat trading 2024
The stock exchanges have scheduled Muhurat Trading on November 1 from 6:00 to 7:10 pm, as per information on the BSE website. Participants should note that all intraday positions will be automatically squared off 15 minutes before the session’s close, necessitating careful planning for same-day trades.
Why is Muhurat trading important?
In India, stockbrokers view Diwali as the beginning of their financial year. Many investors see purchasing stocks during this period as a way to invite prosperity for the coming year. It’s also a time for traders to diversify their portfolios and open new settlement accounts.
Although largely symbolic, Muhurat Trading often draws active participation, with seasoned investors using the opportunity to adjust their portfolios. However, given the short duration, market fluctuations can be quite volatile.
Beyond ushering in the new year, Muhurat Trading embodies optimism and growth for the upcoming business season. This session fosters confidence in the stock market and captures the spirit of prosperity for the year ahead.
With November 1 approaching, both experienced investors and newcomers are eagerly anticipating this festive market event.
Market performance during Diwali Muhurat trading session
During this hour, trading occurs across multiple segments, including equities, commodity derivatives, currency derivatives, equity futures and options, and securities lending and borrowing (SLB).
Historically, investors have experienced positive returns, with the BSE Sensex finishing higher in 13 out of the last 17 special sessions. Although equity indices have generally performed well during these sessions, trading volumes tend to be low, and only a few stocks show significant movement in such a short timeframe.
In 2008, however, the Sensex surpassed even the most optimistic forecasts, rising by 5.86% in the one-hour session. It ended the day at 9,008, although it remained mostly range-bound for the remainder of the year due to the global financial crisis.
