What is muhurat trading? And when is it this Diwali?
- What is Muhurat Trading?
Stock exchanges hold a special symbolic trading session on the occasion of Diwali, which is called Muhurat Trading. The one-hour session is considered auspicious to mark the beginning of the tradition Hindu accounting year, called Samvat. Worshipping account books and cash chests on this occasion is common among the Gujaratis and Marwaris – two communities that dominate India’s trade and commerce. Stockbrokers perform ‘Chopra Pooja’ i.e. worshipping of account books at stock exchanges, before the customary 'Muhurat Trading'.
- When is it held?
The special live trading session is held at the most auspicious hour of the day. This year it will be held from 6.15 pm to 7.15 pm on Sunday, October 27, 2019.
- What is the Schedule for the session?
Block Deal Session: 5.45 pm to 6 pm Pre-Open: 6 pm to 6.08 pm Normal Market: 18.15 pm to 7.15 pm Call auction illiquid session: 6.15 pm to 7.15 pm Closing session: 19.20 pm to 7.30 pm Trade modification cut-off time: 6.15 pm to 7.40 pm Random closure in last one minute
- What does history say about Muhurat Trading?
BSE, Asia’s oldest stock exchange, has been holding Muhurat Trading since 1957 and NSE since 1992. Trading on this day is symbolic and an old ritual, which is being followed by the trading community for over half a century now. It is believed that buying small quantities of shares on this occasion can bring the blessings of Goddess Lakshmi, the goddess of wealth and prosperity, throughout the Samvat year. A few investors on Dalal Street still believe stocks bought on this day are meant for keeps, so that they can be passed on to the next generation.
- How do the indices behave in Muhurat Trading?
The market momentum historically has remained positive in these special trading sessions, but trading volumes have generally been low. Stocks movements also tend to be low during this short session. BSE Sensex has settled higher in 11 of the last 14 Muhurat trading sessions. Last year, the 30-share Sensex climbed 0.7 per cent to settle at 35,237, while the 50-pack Nifty rose 68.40 points, or 0.65 per cent to 10,598.40. On October 28, 2008, the Diwali day, Sensex surprised many by climbing 5.86 per cent in a single session. The index settled the day at 9,008. For the other years, the index has largely remained range-bound.
- What to expect this year?
Analysts are largely positive about Samvat 2076, with many expecting Nifty to top the 14,000 mark and Sensex at 46,000 level by next Samvat, suggests a Samvat Survey by ETMarkets.com.
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