Stock Market Trading on Diwali: When the stock market is closed all day on Diwali, the market is traded for a while for the Muhurta trading session in the evening. Muhurta trading is a special symbolic trading session, held on the stock exchange on Diwali. Both BSE and NSE run a one-hour trading session according to “auspicious time” or auspicious time. It is believed that trading in this session brings prosperity for the investors throughout the year. However, there are other reasons as well to look forward to. Muhurta trading consists mostly of buying orders which insist on adding to the market and the market closes with positive notes.
Why is Diwali special for investors?
In India, Diwali signifies the victory of ‘light on darkness’, ‘good over evil’ and ‘knowledge over ignorance’. People clean their homes, wear new clothes, exchange gifts and sweets. Along with this, we also buy gold. Apart from its spiritual significance, it also marks the beginning of the traditional Hindu accounting year, which is called ‘Samvat’. Lakshmi, the goddess of wealth and prosperity and Ganesh, the god of beginnings, is worshiped on Diwali.
Indians worship in honor of books of account and vault. Businesses and shops close their old account books and start the new year from positive notes to new accounting books. Before the traditional trading session, investors and stockbrokers perform ‘Chopda Pujan’ to seek blessings from Lakshmi and Ganesh. This gives you a good reason to invest in Muhurta trading.
Muhurta Trading: Why One Should Invest?
Even though the stock markets are closed on Diwali, the Muhurta trading session lasts for about an hour. The time of trading Muhurta changes every year based on the most auspicious hour of the day. The business community has been following the tradition for half a century. BSE since 1957 and NSE since 1992 are organizing this special trading session. This year, there will be Muhurat trading on the stock exchange on Saturday 14 November from 6:15 to 7:15 pm.
Investment is considered auspicious
In Muhurta trading session, investors and brokers buy value-based stocks, which are good for a long period. It is believed that the position of the planets in a special time is such that the investment made brings good luck to the investors. Many investors believe that the shares bought on this occasion should be kept as lucky charms. They buy shares and even take them to the next generation. Diwali is considered an ideal day to start anything new. Many people make their first investment in the stock market during this particular trading session.
It is observed that markets generally move upwards during the Muhurta trading session. The investors’ sentiment remains positive due to high purchase orders in all segments. Stock prices remain stable on this day as most investors prefer to buy rather than sell. Investors are usually involved in value investment during Muhurat trading.
Better time to start investing
Because of this, it is the right day to invest in the stock market, big purchase, token investment or for the first time purchase. However, it is important that overvalued shares are not swayed by sentiment. Cultural and religious sentiment occupies an important place in the decision-making process of an investor, it is necessary to have strong financial analysis in advance for success in the stock market.