November 1, 2024 – Today, the Indian stock markets are closed for regular trade and will open in the evening only for the one-hour muhurat session. This trading session today, November 1, will be from 6:00 pm to 7:00 pm and will mark the first day of the Hindu year Samvat 2081. This special trading session is a one-hour event which takes place every year on Diwali.

What is muhurat trading?

Muhurat means an auspicious start. And with Diwali marking the beginning of the new Hindu year, stockbrokers and traders consider it to be a special time, an auspicious opportunity, to begin new ventures. During this one-hour period, investors and traders often buy stocks and commodities.

Muhurat trading, conducted on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), is a symbolic session. Its origin goes back to the times when stockbrokers began their financial year with the festival of Diwali. And in those days, brokers would open fresh settlement accounts for clients on Diwali day. However, today it is just a symbolic practice.

During the hour-long session, the market functions similarly to any other trading day. The sentiment is generally upbeat. Although equities can be bought and sold, most traders just make little, symbolic investments. Investors go for high-quality stocks with long-term potential rather than concentrating on making quick money.

Despite the brief session, there is a high degree of participation, and because of the symbolic nature of the event, trading volumes are often high.

After the session ends, there is an atmosphere of celebration, especially seen on the trading floors of major exchange houses. The closing bell ceremony is often marked with festivities.

In the past, muhurat trading has frequently produced profits; in 13 of the previous 17 sessions, the BSE Sensex closed higher.

Trade on Thursday (October 31), the last day of the traditional Hindu year of Samvat 2080, closed weak. A sell-off in software companies and continued selling by Foreign Institutional Investors (FIIs) led to Indian stock markets ending lower.

BSE Sensex fell 553 points, or 0.69%, to close at 79,389, while the National Stock Exchange’s Nifty50 declined 135.5 points, or 0.56%, to 24,205.35. The Nifty50 fell more than 6% in October — the sharpest drop in a month for four-and-a-half years on the back of weak global cues, FIIs selling and lower quarterly earnings.