Indian markets will enter the Muhurat session with deep woes as it looks at its worst monthly performance since March 2020. In October alone, the Nifty 50 index fell almost 5.5 per cent with foreign investors (FIIs) continuing their series of selloffs, spurring a fifth straight week of the bear run.
Diwali Muhurat trading, as announced by the NSE, will be from 6pm to 7pm on November 1. The one-hour event, which occurs every year during the festive season, aligns with the age-old tradition of traders beginning their commerce on the auspicious day by paying respects to the Hindu goddess of wealth, Lakshmi.
Most business communities in the country consider the new financial year to commence with Diwali, with the "Chopda Pujan". Old accounting books are closed, and new ones are open, marking the beginning of the latest business year. The muhurat also marks the beginning of the Hindu calendar year Samvat 2081.
However, Indian markets are approaching this year with a lot of bearish sentiment. Despite a two-session rally, Dalal Street began to drop in early Wednesday trade, continuing its October woes. Lacklustre corporate earnings did not help matters, with at least six mong the major 13 sectors reporting overall losses. Muhurat trading, which features heightened market activity and potentially higher volatility, seems to be adding a bit of risk into the mix.
However, street sentiments also point to hopes by the trading community that the new year might turn things around for the Indian stock market, given that many are ardent believers of Muhurat regarding money matters. Last week, India saw abyssal results in various sectors during the market peak.