In celebration of the auspicious Hindu festival of Diwali, the Indian stock markets, NSE and BSE, will hold a special one-hour muhurat trading session on Sunday, November 12, 2023. This symbolic trading session, considered an opportune time for new investments, will take place between 6 pm and 7.15 pm IST.
The concept of muhurat trading stems from the belief that certain times of the day or year are particularly auspicious for financial endeavors. Diwali, the festival of lights, is widely regarded as a time of prosperity and wealth, making it an ideal occasion for investors to initiate new ventures.
During the muhurat trading session, investors will have the opportunity to place orders for equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB). The session will commence with an 8-minute pre-opening window between 6 pm and 6:08 pm, followed by the regular trading session from 6:08 pm to 7 pm. The block deal session will commence at 5:45 pm on November 12.
While muhurat trading is primarily considered a symbolic gesture, it has been observed to have a positive impact on market sentiment in the past. In the previous ten muhurat trading sessions, seven times the market concluded with positive returns. Notably, in 2022, benchmark indices Sensex and Nifty gained 0.88% during the one-hour trading session, while in 2021, they gained 0.49%.
Investors who choose to participate in muhurat trading should exercise due diligence and conduct thorough research before making investment decisions. It is advisable to consult with financial advisors to understand the risks and potential returns associated with specific investments.