Diwali Muhurat Trading 2024: Date, Timing, and Historical Sensex Performance
Discover the details of Diwali Muhurat Trading 2024, including the date and timing, as well as a look at historical Sensex performance. Explore how this auspicious trading session can impact the market and set the tone for the financial year ahead
Diwali Trading Muhurat
Muhurat trading is a special and auspicious tradition in India, where stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) open for a brief one-hour session on Diwali. During this time, traders and investors engage in symbolic trades, seeking good luck and prosperity for the upcoming financial year. This unique blend of spirituality and finance reflects the belief that conducting trades during this auspicious hour can attract wealth and success.
Muhurat trading is considered a positive way to kick off the new financial year and is a cherished tradition in the Indian stock market.
Muhurat Trading: Timing and Date
The specific timing for Diwali muhurat trading varies each year based on astrological calculations, typically occurring in the evening to symbolise a fresh start for investors.
In 2024, muhurat trading is scheduled for Friday, November 1. The pre-opening session begins at 6:00 PM and lasts for 15 minutes, followed by the continuous trading session from 6:15 PM to 7:15 PM.
Here are the Muhurat trading timings announced by BSE India:
The Muhurat trading session for the Commodity Derivatives Segment on November 1, 2024, will be held at:
Log-in: 5:15-6:15 PM
Continuous trading: 6:15-7:15 PM
Trade modification: until 7:25 PM
The Muhurat trading session for the Currency Derivatives Segment on November 1, 2024, will be held at:
Log-in: 5:15-6:15 PM
Continuous trading for currency derivatives and interest rate derivatives: 6:15-7:15 PM
Cross currency derivatives: until 7:15 PM
Trade modification currency derivatives and IRD: until 7:25 PM
Trade modification cross currency derivatives: until 7:25 PM
Trade annulment request: until 7:30 PM
The Muhurat trading session for the Electronic Gold Receipts Segment on November 1, 2024, will be held at:
Log-in: 5:00-6:00 PM
Pre-open: order entry period: 6:00-6:08 PM
Pre-open: matching period: 6:08-6:15 PM
Continuous trading: 6:15-7:15 PM
Closing: 7:15-7:25 PM
Post-closing: 7:25-7:35 PM
Trade modification: until 7:40 PM
The Muhurat trading session for the Equity Derivatives Segment on November 1, 2024, will be held at:
Log-in: 5:15-6:15 PM
Continuous trading: 6:15-7:15 PM
Trade modification: until 7:25 PM
Trade annulment request: until 7:30 PM
Muhurat Trading: History and Origin
The origins of muhurat trading can be traced back to ancient India, with the practice believed to have been initiated by King Vikramaditya. He held the belief that commencing Diwali muhurat trading would bring prosperity to his kingdom. Over time, this practice evolved into a cherished tradition among traders.
In the 20th century, muhurat trading gained official recognition in the Indian stock market. The Bombay Stock Exchange (BSE) was one of the first to adopt this tradition in 1957, followed by the National Stock Exchange (NSE). Since online trading was not prevalent at the time, traders would gather physically at the stock exchange during this auspicious hour to execute their trades.
Muhurat Trading: How Does It Work?
India's major stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), conduct Diwali muhurat trading annually. The stock market remains closed throughout Diwali, with a special one-hour window opened exclusively for this event, allowing traders to make auspicious trades.
The muhurat trading session lasts about an hour and is divided into multiple segments, each dedicated to specific market categories, including stocks, derivatives, commodities, and more. Traders typically begin their Diwali muhurat trading with various religious rituals and prayers. During this period, they can buy and sell stocks, marking a fresh start in their financial journeys.
With advancements in technology, muhurat trading is no longer confined to physical trading floors. Online trading platforms enable traders and investors to participate from the comfort of their homes.
Muhurat Trading: Historical Sensex Performance
A significant aspect of muhurat trading is its impact on the Sensex, India’s benchmark stock index. The performance of the Sensex during Diwali muhurat trading is closely monitored and interpreted as a sign for the upcoming year.
Historically, muhurat trading has often set a positive tone for the market, bringing good luck and substantial gains for investors. It is not unusual for a bullish trend to carry over into the following trading days and months.
Over the years, the Sensex's performance during Diwali muhurat trading has shown a mix of gains and losses. Notable trends include a significant surge in 2008 (5.9%) and consecutive declines in 2016 (-0.4%) and 2017 (-0.6%). Conversely, the years 2018 (0.7%), 2019 (0.49%), 2020 (0.45%), 2021 (0.49%), 2022 (0.88%) and 2023 (0.55%) all recorded positive gains, suggesting a more optimistic outlook during these sessions.
