The stock market will operate today in a departure from its usual schedule for Diwali's Muhurat Trading. This tradition, prevalent in Indian trading circles for over 50 years, holds special significance as it is believed to usher in prosperity and good fortune for the upcoming year.
Initiated at the Bombay Stock Exchange in 1957, Diwali's Muhurat Trading was later adopted by the National Stock Exchange in 1992. The auspicious nature of this event aligns with Hindu traditions, where the worship of Goddess Laxmi on Diwali evening is considered auspicious due to celestial alignments. This belief motivates both experienced and novice investors to engage in trading, aiming for profitable investments.
The focal point of the day in the stock market is the Muhurat Trading, during which many investors seek to make long-term investments, while others opt for short-term trades. This collective endeavour is seen as a symbolic and auspicious commencement for a prosperous financial year.
Image source: Hindustan Times
Information for Investors
This year specifically as of November 10, 2023, market conditions have been favourable. The S&P-BSE Sensex registered a notable growth of over 5.98 percent, while the BSE Mid-cap and BSE Small-cap indices surpassed expectations, showing gains of 27 percent and 30 percent, respectively.
However, the market witnessed a decline of 4.4 percent after reaching a new peak on September 15, 2023, primarily attributed to geopolitical concerns and inflationary pressures. For all investors intending to participate in Muhurat trading, it is advisable to focus on assets with a strong management history and solid fundamentals. This strategic approach ensures resilience against external pressures and contributes to the overall stability of investments amid market fluctuations.
Muhurat Trading Timing and Historical Trends
The NSE and BSE stock markets are set to open for a one-hour Diwali Muhurat Trading session on November 12, 2023 (Sunday). As per announcements from both BSE and NSE, the symbolic trading will take place from 6 pm to 7:15 pm, encompassing a 15-minute pre-market session, as stated in their respective circulars.
Image source: Times Now
Traditionally, this trading has often concluded on a positive note. In 2022, the index witnessed a surge of 524.5 points, marking one of the most favourable Diwali sessions in recent years. In 2021, the Sensex saw gaining 295.70 points, closing at 60,067.62, while the Nifty 50 rose by 91.8 points to reach 17,921. Notable gainers included Kotak Mahindra Bank, L&T, and TCS. Throughout the trading session, 2,535 shares experienced gains, while 514 stocks recorded losses.
Diwali Muhurat Trading carries historical significance, symbolizing optimism. However, investors are advised to align their stock purchases with their risk tolerance and conduct thorough research, rather than participating solely because of festive occassion.
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