Muhurat Trading 2021: Timings, Importance, History and Details4 min read
Diwali, the Festival of Lights is indeed a great time to kick off any new task or launch a new initiative. So why should traders and investors hold back? Muhurat trading is a special one-hour trading session allowed by the stock exchanges on the day of Diwali.
Like every year, the stock markets will host a symbolic trading session that marks the beginning of Hindu accounting year called Samvat. Muhurat Trading is on the day of Lakshmi Pujan and market participants believe that buying or trading on this occasion can bring blessings of Goddess Lakshmi and will mark the beginning of the wealth creation journey for the year.
The word Muhurat means an auspicious time to start or to do something. Muhurat trading is the special trading activity in the Indian stock market that is held on the occasion of Diwali which is a big festival for people of India.
The time of the Muhurat trading is not fixed and changes every year. Many investors happen to buy the stocks for long run on occasion of Muhurat Trading since they consider it to be a goodwill.
Trades made on this day are more for traditional, religious and sentimental reasons, Brokers and investors make token investments and usually hold the stock for a year or so. They usually end up booking intra-day profits post Muhurat Trading.
On November 4, 2021, the BSE and NSE will allow investors to buy and sell stocks from 6:15 PM to 7:15 PM on Diwali. Read ahead for the detailed time slots.
What is Muhurat Trading
Muhurat trading is a special one-hour trading session that’s allowed by the stock exchanges on the day of Diwali. A small session for bulk deals precedes the main session. All the trades executed during the Muhurat trading session result in settlement. Buying and selling shares during the Muhurat trading is considered to be auspicious by a large number of traders and stockbrokers.
The symbolic trading session marks the beginning of a new Hindu accounting year, known as Samvat. The new Samvat is expected to bring growth to the market as India is likely to witness renewed economic momentum in the aftermath of the pandemic.
The time slot of this Muhurat trading is not fixed and changes every year. Many investors buy the stocks for the long run during Muhurat Trading since they believe it as a goodwill.
Why Do Muhurat Trading?
It’s a tradition to trade during the Muhurat, as a worship towards the Hindu Goddess of wealth. Trading on this day, which is also the day when the Hindu financial year begins considered to bring a blessing for the year ahead. Further, the Gujarathi community begins their new year a day after Laxmi Puja (Muhurat Trading Day).
Muhurat Trading 2021
According to the Hindu calendar year this year, Diwali is falling on Thursday i.e. November 4, 2021, with Samvat 2078. It is believed that Muhurat trading brings prosperity and wealth throughout the year.
Muhurat trading will also be held on November 4, that is on the day on Laxmi Poojan.
This year’s timings are as mentioned below
History of Muhurat Trading
Muhurat Trading session has a history of nearly six decades. The trades consider this as blessings from the Goddess of wealth and Prosperity which is Goddess Lakshmi.
The oldest stock exchange in Asia which is the Bombay Stock Exchange (BSE) started Muhurat trading in 1957 whereas the National Stock Exchange (NSE) is conducting it since 1992.
4 things you should know about Muhurat Trading
1. Are there any benefits of Muhurat Trading?
There aren’t any particular benefits of Muhurat trading. It is mainly done to worship the profession on an auspicious day i.e. on the very first day of the Hindu calendar.
2. Is Muhurat Trading good for new investors?
Muhurat Trading is said to be a special and auspicious for a newbie trader. As a part of Muhurat Trading, one gets to understand the market and can experiment with a very small investment. After a thorough understanding is gained, traders can invest by picking up the best stocks.
3. Is Intraday allowed in Muhurat Trading?
There are no particular restrictions that prohibit intraday trading during the time of Muhurat Trading. A lot of knowledge and experience however is expected to however be trading in this manner.
4. Is Muhurat Trading profitable?
While seasoned traders may profits during Muhurat Trading and the same has been noted for years in the past, the whole idea of trading during Muhurat Trading is to mark the beginning of prosperity and wealth. Sensex has been noted to be on the bullish side for a long time now.
Disclaimer – This content is purely for informational purpose and in no way advice or a recommendation.
