Diwali 2024 Muhurat trading: 10 lesser-known facts about the tradition | Stock Market News
Source: Live Mint
Muhurat trading on Diwali 2024 makes the festival of lights, sweets, and family gatherings more special for stock market investors. The special Muhurat trading session will occur on November 1, between 6 pm and 7 pm .
A pre-opening session will be conducted from 5:45 p.m. to 6 p.m. on Friday before the opening of BSE and NSE for Muhurat trading. Trading equities, derivatives, and currency derivatives during this period is considered auspicious. Here are the exciting facts about Muhurat trading.
Muhurat trading 2024: Top 10 unknown facts about Muhurat trading
-Muhurat trading coincides with Diwali celebrations and the beginning of the Hindu New Year, Vikram Samvat 2081. The one-hour trading is a mix of cultural significance and financial opportunity.
-The practice of Muhurat trading on Diwali symbolises the victory of light over darkness as investors engage in trading and hope for prosperity and wealth throughout the year.
-The practice of trading during the Muhurat trading session dates back to the late 1950s, when the Bombay Stock Exchange (BSE) institutionalised the tradition for the first time in 1957. Thirty years later, the National Stock Exchange (NSE) opted for the tradition and started opening the Muhurat trading window in 1992.
-The roots of Muhurat trading are linked to ‘Chopda Pujan’, a ritual in which the mercantile community opens ledgers and new account books following a special prayer.
-Muhurat trading has been practised for decades, and investors have generally witnessed positive returns during these sessions. Interestingly, BSE Sensex has ended the special trading session on a higher note in thirteen of the last seventeen Muhurat sessions.
-Stock market indices surged significantly during the Muhurat trading session in 2008, the year marred by the global financial crisis. On October 28, 2008, stock market indices skyrocketed to nearly 6 per cent, making it the highest gain for the session.
-It is believed that the stocks bought during this special trading session bring wealth and prosperity to investors throughout the Samvat.
-Muhurat trading generally begins after a person of repute rings the special bell to start the session. Apart from investing in equities, most traders and investors worship the Goddess of Wealth, Lakshmi, during the session.
-On the day, stock market exchanges are adorned with flowers, lamps, and lights. Traders visit the stock market in traditional attires.
-Muhurat trading session is when everyone is in a hurry to close positions. Therefore, there is no time left for a trend to emerge on this day, leading to volatility in stock prices.
