Muhurat Trading: What Is It? Know About Investing In Auspicious Beginnings

Muhurat trading is a special session of trading conducted every year by Indian stock exchanges on Diwali day. The Indian stock exchanges, such as the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), conduct this special trading session. This special one-hour trading window marks the start of the Hindu financial year and is considered an auspicious time for investments. Originating from cultural beliefs, the session is considered an an invitation to welcome prosperity and wealth into the year that is ahead of us, along with Diwali's spirit of light and abundance of darkness.

The time taken for the Muhurat trading session is usually done on Diwali evening during the Lakshmi Puja, where most Indians look for the blessings of the goddess Lakshmi, the goddess of wealth and fortune. But the actual time varies with the astrologers, but it is performed for an hour between 5:30 pm and 7:30 pm in any given year. The BSE started performing Muhurat trading from the year 1957, and since then it has become an event of much importance for traders as well as investors.

It is mainly symbolic and also of great cultural as well as monetary value. Many traders make token investments during the period since they want to usher in the new financial year with a good feeling. The market is visited both by small and large investors, who come here due to the festive season which has overpowered the minds, and the volume of trading generally is low in comparison with that of regular days. However, the market sentiment still continues to be positive, and most of the indices make slight gains due to optimistic investor sentiment and conventionalism.

Muhurat trading is also a ritualistic session in the brokerage houses and stock exchanges, in which pujas are performed, and the traders seek blessings for good fortune and prosperity. It has become a very popular event among the brokers and the investors who belong to Gujarati and Marwari communities, as the job of trading is something handed down from generation to generation; in some instances, even whole families participate in the session.

Financial gurus always advise investors to hold off from making any impulsive purchases of stocks at the trading during the Muhurat trading hour. This comes at a time when during that particular period, one perceives any trade made on it would bring him luck with him as the whole event. Many financial analysts and consultants generally advise token purchases since most investments should practice caution on financial transactions.

Muhurat trading thus is much more than just a trading session; it is the celebration of tradition, hope, and new beginnings, an opportunity for the Indian financial community to blend cultural reverence with the modern-day stock market.