The stock market will hold a special Muhurat trading session from 6.15 pm to 7.15 pm, like every year. Muhurat trading has been a symbolic ritual that has been followed for many years. The BSE has been following the practice since 1957, while the NSE from 1992.
It is believed that Muhurat trading brings prosperity and wealth throughout the year. The special Muhurat session for Diwali on Thursday evening would be more for token trades to get off to an auspicious start of the new Samvat year 2078.
Muhurat Trading Schedule
Pre-Open: 6:00pm-6:15pm
Normal market: 6:15pm-7:15pm
Closing session: 7:25pm-7:35pm
How Did The Markets Fare In Samvat 2077?
Last year, both broad indices Sensex and Nifty closed at record highs in the special, one-hour trading session on Diwali to mark the beginning of Samvat 2077. Since then, markets are in upbeat mood, creating new milestones in every trading session with some small hiccups every now and then.
Since last Diwali, the Sensex and the Nifty have gained over 40 per cent. Despite the second wave of the Covid pandemic, the Indian stock markets have outperformed every other major market in the world this year and Samvat 2077 proved to be a great year for investors.
How to Approach Muhurat Trading?
Typically, there is very thin liquidity during Muhurat trading as investors do token trading, so it is better to keep your greed under control and avoid any large positions.
“While no action is expected on the rates, the (US Federal Reserve’s) commentary on tapering, growth and inflation would be a key thing to watch out for. We will see the participants’ initial reaction on Thursday evening, November 4, in the special Diwali Muhurat trading session. We reiterate our cautious view on markets and suggest limiting leveraged positions,” says Ajit Mishra, vice-president, research, Religare Broking Ltd.
