Significance and Trends of Trade from Muhurat to BSE, NSE on Diwali

The tradition of Muhurat Trading started in the Bombay Stock Exchange in 1957. Later it was adopted in the National Stock Exchange in 1992.

Among the Indian trading community, Muhurat Trading on the occasion of Diwali is considered auspicious as it is believed to bring wealth and good luck throughout the year.

Diwali will mark the start of the new Samvat 2077, which is the new year according to the Hindu calendar, known as Vikram Samvat. According to Hindu tradition, the worship of Goddess Laxmi, the Goddess of Wealth and Prosperity on Diwali evening is considered auspicious as the planets align in auspicious positions.

The Indian stock market also opens for one hour for stock trading every year on Diwali. This annual ritual is known as Muhurat Trading.

Moment of Muhurat trade

The bundle session will start at 5:45 p.m. and end at 6:00 p.m. on October 24, 2022. The pre-market session will start at 6:00 p.m. and end at 6:08 p.m. The corresponding timing will be from 6:08 p.m. to 6:15 p.m., and the Muhurat Trading session will start at 6:15 p.m. and end at 7:15 p.m. The closing session will take place from 7:15 to 7:25 p.m.

Historical trend

Demand during Muhurat Trading hour has generally been higher.

Tejas Khoday, CEO and co-founder of FYERS, a stock trading platform, says, “Muhurat Trading session has a history of almost six decades. Traders regard this as a blessing from Goddess Laxmi, the Goddess of Wealth and Prosperity. Usually the trend is buying and most Muhurat Trading sessions ended in the green. The trend on the next trading day was that the index closed in the red most of the time.

Every year, markets note a significant increase in trading volume during a certain period of Muhurat trading hour, “between 6:30 and 7:00 a.m., when there is a significant increase in volume.”

Historical review of Muhurat Trading

In 2017, the Sensex opened at 32,656.75 but closed 194.3% lower at 32,389.9. Similarly, the Nifty 50 fell 0.63% to 10,146. Markets started on a strong note but then fell as demand waned. Airtel, RIL, M&M and Lupin were the top earners.

In 2018, the BSE Sensex jumped 245.77 points to 35,237.6, while the NSE rose just 0.65% to 10,598.40. The BSE performed much better than the NSE, but overall demand was high during the 2018 Muhurat Trading. BCPL, HPCL, IOC, Infosys and Vedanta were the main gainers.

In 2019, the BSE Sensex climbed 192 points to close at 32,250, and the Nifty 50 opened at 11,662.25 and fell 35.1 points to close at 11,627.15. Tata Motors, Vedanta, Yes Bank, ITC and Tata Steel were the main winners.

In 2020, the Sensex jumped 195 points to close at 43,638, and the Nifty 50 rose 51 points to close at 12,771. Airtel, Tata Steel and Sun Pharma were the main gainers in the Muhurat Trading session.

In 2021, the Sensex gained 295.70 points to close at 60,067.62, while the Nifty 50 jumped 91.8 points and closed at 17,921. Top gainers were Kotak Mahindra Bank, L&T and TCS. During the trading session, 2,535 shares gained, while 514 shares fell. General market sentiment was bullish and demand was strong as the NIFTY and Sensex reached new highs.

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