As India gears up to celebrate Diwali, the festival of lights, the stock market too is set to mark the occasion with the annual Muhurat Trading session – a one-hour special trading window that will take place on October 21 from 1.45 pm to 2.45 pm.
The Muhurat Trading session is considered an auspicious time to invest, as Diwali marks the beginning of a new Samvat year. Trading volumes during this session are usually light.
What is Muhurat Trading?
‘Muhurat’ translates to auspicious time in English. Muhurat Trading refers to this special period, dedicated exclusively to trading.
First introduced by the Bombay Stock Exchange (BSE) in 1957 and later adopted by the National Stock Exchange (NSE) in 1992, India’s stock exchanges open for a special one-hour trading session every Diwali. Rooted in ancient tradition, traders mark the festival by opening new account books and invoking the blessings of Goddess Lakshmi.
Before participating in Muhurat Trading, it is important to decide whether to focus on trading or investing. While trading requires quick execution and short-term gains, investing benefits from long-term fundamentals and compounding. During this period, one can trade and invest across equities, commodities, currencies.
When is Muhurat trading session 2025?
In a departure from the usual practice, this year’s Muhurat Trading session will be held in the afternoon, from 1.45 pm to 2.45 pm, instead of in the evening.
According to the circular, a 15-minute pre-open session will take place from 1.30 pm to 1.45 pm, followed by normal trading from 1.45 pm to 2.45 pm.
It is advisable to pre-decide the stocks, futures, and options (F&O) you plan to trade or invest in. This helps create a clear roadmap for executing orders during the brief one-hour session.
Holiday schedule and market outlook
Despite the festive period, the stock market will remain open on Monday, before closing again on Tuesday and Wednesday for Diwali Laxmi Pujan and Diwali Balipratipada, respectively.
There will be a special one-hour “Muhurat Trading” session on Tuesday, October 21, instead of a full regular trading day.
Market analysts note that Diwali is regarded as an auspicious occasion to begin new ventures, and many investors believe participating in Muhurat Trading brings prosperity throughout the year.
However, since the trading window is limited to just an hour, markets often witness heightened volatility. Analysts emphasize that the session’s importance lies more in its symbolic value than in immediate profitability.