Muhurat trading 2024: everything you need to know

A stockbroker prays before the start of Muhurat Trading, a special trading session on the occasion of Diwali, at a brokerage firm in Mumbai. | Photo Credit: AFP

While stock markets remain closed for normal trading on Diwali day, the annual Muhurat Trading session will take place today (November 1, 2024) from 6 PM to 7 PM, as per NSE notification.

Every Deepavali, Indian stock markets hold a special trading session known as Muhurat Trading, symbolizing prosperity and new beginnings in keeping with the spirit of the festival.

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Typically this period is Deepavali evening and most people choose to buy shares as a symbol of Goddess Lakshmi. This is specific to Indian stock markets only.

What is the Muhurat Processing time?

The exact timing of Muhurat Trading varies every year and the session is usually held in the evening. In 2024, the trading window will likely occur between 18:00 and 19:00. Before this period, pre-market orders may be placed during a short pre-opening session, typically 15 minutes before the start of main trading. The trade takes place on the evening of Deepavali to mark the beginning of the new Samvat or the Indian calendar followed mostly in the northern parts of India. This year will mark the beginning of Samvat 2081.

What makes Muhurat Trading unique?

Investors and traders in India join Muhurat Trading not only because of its traditional importance but also because of its strategic benefits. This session marks the beginning of a new financial year as per the Hindu calendar and many institutional and individual investors and brokers are looking to invest in stocks with high potential. Understanding these strategic benefits can help investors make informed decisions during this auspicious session.

What’s going on in Muhurat Trading?

On Deepavali, NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) allow trading for a limited period. Typically the session is divided into the following sections:

1. Block Trading Session – a session in which two parties agree to buy/sell a security at a fixed price and inform the exchange about it.

2. Pre-Open Session – where the exchange determines the equilibrium price (usually about eight minutes).

3. Regular Market Session – a one-hour session where most trading takes place.

4. Call Auction Session – where illiquid securities are bought and sold. The security is called illiquid if it meets the criteria set by the exchange.

5. Closing Session – where traders/investors can place market orders at the closing price

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Muhurat Trading 2024 offers a unique opportunity to start the new financial year with optimism and strategic investments. Markets are known to be volatile as the trading window is only one hour. As with every trading session, careful planning, research and a cautious approach can help traders maximize this auspicious opportunity.