Muhurat Trading | 2023

Muhurat Trading is a special one-hour trading session in India, traditionally held during Diwali, the Hindu festival of lights. It's a time when investors come together to trade in a positive and optimistic atmosphere, seeking blessings for financial success in the coming year. Traders light lamps, offer prayers and make informed decisions in the hope of prosperity. It's a unique blend of tradition and strategy that sets the tone for the year ahead, uniting cultural heritage with financial markets.
 

What is Muhurat Trading?

Muhurat Trading, often referred to as Diwali Muhurat Trading, holds a unique and sacred place within the Indian stock markets. In which the share exchanges take place for one one-hour window period. The term "Muhurat" finds its roots in Sanskrit, where "Muhur" signifies 'moment' and "Rat" translates to 'time.' This combination reflects the significance of selecting an auspicious moment for trading on the special occasion of Diwali.
 

During this special day, traders would engage in puja, or the act of worship, dedicated to their account books and ledgers as a mark of admiration and auspicious beginnings.

This trading tradition is filled with symbolism, representing good fortune and well-wishes for the year ahead. It serves as the inaugural event for the Hindu New Year, bringing investors together in a celebration of new beginnings, wealth, and prosperity.

An Overview of Historic Price Movements during Muhurat Trading

Historically, the stock market has performed well during Muhurat trading sessions over the past decade. Let's examine the data from previous years to see how the Sensex has performed historically on Muhurat trading days.

2013: The Sensex gained 0.02% on the Diwali Muhurat trading day.

2014: The Sensex gained 0.02% on the Diwali Muhurat trading day.

2015: The Sensex gained 0.05% on the Diwali Muhurat trading day.

2016: The Sensex dropped 0.04% on the Diwali Muhurat trading day.

2017: The Sensex dropped 0.06% on the Diwali Muhurat trading day.

2018: The Sensex gained 0.07% on the Diwali Muhurat trading day.

2019: The Sensex gained 0.49% on the Diwali Muhurat trading day.

2020: The Sensex gained 0.45% on the Diwali Muhurat trading day.

2021: The Sensex gained 0.49% on the Diwali Muhurat trading day.

2022: The Sensex gained 0.88% on the Diwali Muhurat trading day.

History of Muhurat Trading

Muhurat trading, a time-honoured tradition in India, involves a short opening of the stock markets during Diwali, one of the most significant festivals in the country.
 

This tradition originated in the 1950s when the Bombay Stock Exchange (BSE) introduced the practice of a one-hour trading session on Diwali. Initially, it was a gesture to mark the festival's celebration and to unite traders and investors on an auspicious and positive note. With the passage of time, this practice gained popularity, and other stock exchanges like the National Stock Exchange (NSE) also embraced the custom of observing Muhurat trading.

Muharat Trading Time and Date

In 2023, Muhurat trading is scheduled for Sunday, the 12th of November. This unique trading tradition unfolds during the celebration of the Diwali Festival, with the exchanges opening for a brief one-hour window.

The Muhurat trading ritual begins with a pre-opening session at 6:00 PM, spanning 15 minutes.
Following this, the main trading session commences at 6:15 PM and extends until 7:15 PM.

It's a special time in the financial markets, marked by auspiciousness and optimism.

Advantages of Muhurat Trading
 

• Propitious Start

Muhurat trading is widely recognised as bringing good luck and financial prosperity for traders and investors. It's a favoured period for making fresh investments.

• Influencing Market Sentiment

The optimistic atmosphere during Muhurat trading has a ripple effect, often shaping investor sentiment for the upcoming year. A positive start can bring confidence in market participants.

• Reduced Volatility

Thanks to its short trading duration and lower trading activity, Muhurat trading tends to be less prone to long price swings, providing a more stable trading environment. This can enhance the safety of trading during this auspicious period.

Conclusion

In conclusion, Muhurat trading is like a tradition that mixes finance and faith. When people take part in Muhurat trading, they're not only looking for financial growth but also holding onto the good feelings and hope that come with this special time.

Here's a simple tip: plan carefully, learn all you can, and control your feelings while trading during this unique session. I hope your investments in Muhurat trading turn out as great as the shining Diwali lamps, bringing you success and prosperity in the year ahead.

Begin your auspicious and optimistic journey with your trusted stock broker. If you have any questions or need assistance, don't hesitate to contact us.