The Hindu accounting year, Samvat, begins with Diwali every year and the Indian equity markets hold muhurat trading to mark the auspicious occasion.
When is Muhurat trading 2024?
This year Diwali falls on November 1 and hence the one-hour muhurat trading session will be held on the same day to mark the new year, Samvat 2081.
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The one-hour symbolic session is finalised based on planetary positions and is believed to bring good fortune. This happens when the ritual of Laxmi Pujan is carried out to celebrate prosperity. Investors buy stocks as a token to mark new beginnings and usually don't make serious investments.
The tradition of Muhurat trading began on the Bombay Stock Exchange (BSE) in 1957. The National Stock Exchange (NSE) picked up the tradition in 1992 when the exchange was founded.
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The session will have various segments, beginning with a 15-minute block deal session when traders commit to buying or selling stocks at a fixed price and report it the exchange. This will be followed by a pre-market session of 15-minute duration.
The main trading session will last for one hour. During this window, call auction will also be held for the transaction of illiquid securitues. The main window will be followed by the closing session when investors are allowed to place orders at the closing price.
Both BSE and NSE are yet to make an official announcement regarding the timings of the session.