The National Stock Exchange (NSE) has announced its annual Diwali Muhurat trading session for Friday, November 1, 2024, from 6:00 PM to 7:00 PM, marking the beginning of the Hindu calendar year Samvat 2081.
Although regular trading will remain closed on Diwali, the one-hour Muhurat trading session will be open in the evening. A pre-opening session is scheduled from 5:45 PM to 6:00 PM, just before the main trading window.
The Muhurat trading session, steeped in tradition, is viewed as an auspicious time due to favorable planetary alignments. It symbolizes a fresh start for businesses, with investors making new financial commitments under the Diwali festivities. Historically, these sessions have often delivered positive returns, with the BSE Sensex closing higher in 13 of the last 17 sessions.
In 2008, despite the global financial crisis, the Sensex surged by 5.86% during Muhurat trading. More recently, the November 12, 2023 session saw a 355-point gain, or 0.55%. However, post-Muhurat trading periods have sometimes been less favorable, with the index dipping in 7 out of the last 11 years.
The Muhurat session holds deep significance for investors and brokers, symbolizing the financial new year. Many believe that investments made during this time bring prosperity and growth. The session is also an opportunity to diversify portfolios and open new settlement accounts, reflecting optimism in the market for the year ahead.
Participants are advised to be mindful of the session’s short duration and potential volatility. Intraday positions will be squared off 15 minutes before market close, requiring careful strategy and timing. For long-term investors, the session offers a festive opportunity to adjust portfolios and initiate new investments.