The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India are set to hold their traditional Muhurat Trading sessions on the evening of Diwali, November 12, 2023. This symbolic trading event, which marks the beginning of the Hindu accounting year Samvat, is believed to herald prosperity for the upcoming financial year.
The NSE and BSE will host a one-hour trading session from 6:00 PM to 7:15 PM IST on November 12. The NSE's session will also feature a pre-open segment and a block deal window starting slightly earlier. The Commodity Derivatives Segment, Currency Derivatives Segment (including IRD and cross currency derivatives), and Equity Derivatives Segment will have log-in times from 5:15 PM-6:15 PM, with continuous trading from 6:15 PM-7:15 PM. Specific times have also been allocated for trade modifications and annulment requests.
In addition, the Electronic Gold Receipts Segment will allow log-in from 5:00 PM-6:00 PM, a pre-open order entry period at 6:00 PM-6:08 PM, a pre-open matching period at 6:08 PM-6:15 PM, and continuous trading from 6:15 PM-7:15 PM. Fixed closing and post-closing times have been established for this segment.
The Muhurat Trading tradition was reportedly initiated by King Vikramaditya in ancient India and officially recognized by BSE in 1957 and NSE in 1992. Most traders participate in buying stocks during this evening session as it is considered particularly lucky. It is believed that investing during this auspicious hour can lead to significant earnings from small investments.
According to Motilal Oswal, a renowned brokerage firm, this tradition is seen as an auspicious one-hour trading on Diwali, fixed annually by the stock exchange. The ritual pays homage to Lakshmi, the Hindu goddess of wealth and prosperity, and is widely accepted by a diverse group of investors as a fortuitous start to their financial year.
The performance of Sensex, India's benchmark stock index, during Muhurat Trading, is closely watched as a predictor for the coming year's market trends. The Sensex performance history during Diwali Muhurat Trading has shown a mix of gains and losses, setting the tone for the market.
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