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Muhurat Trading, a unique one-hour trading session held on Diwali, is a significant event in the Indian stock market. The session takes place on the auspicious day of Diwali, which is celebrated as the festival of lights in India. This year, Muhurat Trading 2024 is scheduled for November 1st, 2024, from 6:00 PM to 7:00 PM, according to information released by the Bombay Stock Exchange (BSE).
The practice of Muhurat Trading stems from the belief that conducting financial transactions during this auspicious period brings good luck and prosperity for the coming year. Many Indian stockbrokers consider Diwali to be the start of their financial year, and investors often see this as an opportunity to invest in stocks and attract good fortune. The one-hour session allows traders to diversify their portfolios, open new settlement accounts, and engage in the symbolic act of beginning the new financial year with a positive outlook.
While Muhurat Trading is largely symbolic, it often draws active participation from investors. Seasoned investors use the opportunity to adjust their portfolios, capitalize on market fluctuations, and participate in the festive tradition. However, it's important to note that due to the short duration, the market can be volatile, and trading volumes tend to be low. As a result, only a few stocks show significant movement during this brief period.
Historically, the BSE Sensex has ended higher in 13 of the last 17 Muhurat trading sessions. In 2008, the BSE Sensex surged the most, rising by 5.86 percent to 9,008. While equity indices have generally performed well during these sessions, it's important to approach Muhurat Trading with a balanced perspective and avoid basing investment decisions solely on this symbolic event.
As November 1st approaches, investors, both seasoned and newcomers, are eagerly anticipating the Muhurat Trading session. This festive market event provides a unique opportunity to participate in a tradition steeped in cultural significance and the hope for a prosperous year ahead.
Source: Muhurat Trading 2024: Date, time, other details you must know this Diwali