Diwali, the Festival of Lights, is a fantastic time to begin any new project or initiative.
Why, then, should traders and investors be cautious?
On the day of Diwali, the stock exchanges permit a special, one-hour trading session known as “muhurat trading.”
Like every year, the stock markets will host a symbolic trading session to commemorate the start of the Samvat, or fiscal year, in Hinduism.
On the day of Lakshmi Pujan, muhurat trading occurs, and market participants believe that buying or trading on this occasion can bring Goddess Lakshmi’s blessings and will usher in the year’s wealth creation journey.
The Muhurat Trading
Muhurat trade is a unique commercial activity that takes place on the occasion of Diwali, a significant event for the Indian people.
The Muhurat trade hour is not set and varies annually. On occasion of Muhurat Trading, many investors use the opportunity to acquire equities for the long term since they view it as a goodwill.
Brokers and investors make little transactions on this day and often retain the stock for a year or more. Trades are done primarily for traditional, religious, and sentimental reasons.
On Oct 24, 2022, the BSE and NSE will allow investors to buy and sell stocks from 6:15 PM to 7:15 PM on Diwali. Read ahead for the detailed time slots.
What is Muhurat Trading
The stock markets permit a special, one-hour trading session known as “muhurat trading” on the day of Diwali. The main session is followed by a brief session for bulk purchases. Settlement occurs for every deal made throughout the Muhurat trading session. Many traders and stockbrokers view purchasing and selling shares during the Muhurat market as fortunate.
The symbolic trading session heralds the start of the Samvat, or new Hindu financial year. As India is projected to see increased economic impetus in the wake of the epidemic, the new Samvat is anticipated to bring growth to the market.
The time period for this Muhurat trade is flexible and shifts yearly. Several individuals purchase the stocks for the wealth creation during Muhurat time.
Why Do Muhurat Trading?
Trading is customarily done during the Muhurat as a kind of worship for the Hindu goddess of wealth. Trading on this day—the start of the Hindu fiscal year—is seen as bringing good fortune for the next year. Additionally, a day after Laxmi Puja, the Gujarati community starts their new year (Muhurat Trading Day).
Muhurat Trading 2022
This year, Diwali falls on a Monday, October 24, 2022, with Samvat 2079, according to the Hindu calendar. Trading according to the muhurat is said to bring wealth and success all year long.
The day of Laxmi Poojan, October 24, will also see the holding of the muhurat trade.
History of Muhurat Trading
Muhurat Trading Session has been around for about 60 years.
The market sees this as a favour from Goddess Lakshmi, the deity of riches and prosperity.
The National Stock Market (NSE) has been conducting muhurat trading since 1992, whereas the Bombay Stock Exchange (BSE), the oldest stock exchange in Asia, began doing so in 1957.
What advantages does muhurat trading offer?
The use of muhurats for commerce has no distinct advantages.
On the first day of the Hindu calendar, which is an auspicious day, it is mostly done to glorify the profession.
Does Muhurat Trading benefit novice investors?
For a novice trader, muhurat trading is seen as unusual and fortunate.
One benefits from Muhurat Trading by learning about the market and having the opportunity to explore with very little capital.
Once they have a good grasp, traders may invest by choosing the top stocks.
Does Muhurat Trading permit intraday trading?
There are no specific regulations that forbid intraday trading when muhurat trade is taking place.
But it’s predicted that a lot of information and expertise will be traded in this way.
Muhurat Trading: Is it successful?
While experienced traders have made money during muhurat trading in the past and this has been seen for years, the purpose of muhurat trading is to herald the start of prosperity and wealth. For a very long period, the Sensex has been regarded to be bullish.
Disclaimer: The material presented here is solely educational and not intended to be advice or a recommendation.