Muhurat Trading 2023: BSE Gears Up For Market Session On Diwali

The markets will be open for a special trading session on Diwali on November 12 this year from 6 PM to 7:15 PM, including 15 minutes for a pre-market session

Historically, investors have gained from trading during the Muhurat session, with the BSE Sensex closing on a higher end in seven out of the last 10 such trading sessions.  ( Image Source :getty )

As we enter Diwali week, the stock markets are also gearing up to mark the auspicious festival. The Bombay Stock Exchange announced last month that it will hold the traditional Muhurat Trading session as part of the Diwali celebrations this year. The stock exchange revealed that the markets will be open for a special trading session on Diwali on November 12 this year from 6 PM to 7:15 PM, including 15 minutes for a pre-market session.

Every year, as part of the Diwali celebrations, the stock market opens for a special trading session. During this session, the market remains open for an hour only where traders and investors punch in token trades to mark the start of the new Samvat. 

During the Muhurat Trading, trade across segments like equity, commodity derivatives, currency derivatives, equity futures and options, and securities lending and borrowing (SLB) will take place in the same time slot. 

Significance Of Muhurat Trading

The celebrations mark the start of a new Hindu calendar year, called Samvat, and as part of the tradition, it is considered an auspicious start to the year for the traders and brings financial prosperity and growth to all stakeholders. All trades conducted during this trading session are settled on the same day. Under Indian traditions, Diwali is considered an auspicious time to start any new venture. This tradition is followed by the market through this special Muhurat Trading, believed to benefit investors throughout the year. 

Muhurat Trading In The Past

Apart from the special trading session, the markets will remain closed on Diwali, which falls on a Sunday this year. Historically, investors have gained from trading during the Muhurat session, with the BSE Sensex closing on a higher end in seven out of the last 10 such trading sessions. 

During the last two Muhurat Trading sessions, the markets closed the session in green. Both the benchmark indices, Sensex and Nifty settled 0.88 per cent higher each on Mahurat Trading in 2022 and closed 0.49 per cent higher in the special trading session in 2021. While this special trading hour is considered auspicious, markets can behave with extreme volatility during the session, so it is advised to exercise caution.