Diwali is just around the corner and will be celebrated on November 4, Thursday, this year. Like every other year, the stock market would arrange Muhurat Trading 2021 for an hour, which is a symbolic trading session held by stock exchanges to mark the auspicious festival. The fifty year old tradition for Equities, Equity F&O, Currency F&O, and Commodities for Diwali 2021 is set to be held between 6:15 PM to 7-15 PM on November 4, Thursday. Before the hour-long session takes place, a window from 5:45 PM to 6 PM has been reserved for the block deal session,. This will be followed by the pre-open session between 6 PM and 6:08 PM.
The customary one-hour session of Muhurat Trading is considered auspicious by many and marks the start of Samvat, meaning the accounting year in Hindu religion. The stock market remains closed for rest of the day and opens only during this occasion for an hour. Here is everything you need to know about Muhurat Trading 2021.
What is Muhurat Trading?
As mentioned before, Muhurat Trading is a customary trading of stocks done for one hour during Diwali and is considered auspicious among many. As the years have passed, Muhurat Trading has become more of a tradition, blended with shades of religion and culture and is an interesting event. According to the Hindu tradition, Diwali this year marks Samvat 2078 — that is the new financial year. The traders of the stock market do special share trading in just an hour, and so it is called Muhurat Trading. Muhurat Trading 2021 is scheduled to take place between 6:15 PM to 7:15 PM.
Significance of Muhurat Trading
Muhurat Trading was first introduced by the Bombay Stock Exchange (BSE) when it reserved an hour on Diwali for stock trading in 1957. The National Stock Exchange (NSE) followed this move and allowed trading for one hour on the day of Diwali in 1992. Since then, traders believe that any deal done during Muhurat Trading brings in fruitful results as well as prosperity. During this time, is a way the trading community prays to Goddess Laxmi, the Hindu deity of wealth.
How Have Stocks Performed During Muhurat Trading?
The special Muhurat Trading session was held on November 14 last year. During that time, the trading session witnessed the Bombay Stock Exchange or BSE Sensex ending at 43,638, citing a rise of 195 points. On the other hand, the National Stocl Exchange or the the NSE closed at 12,771, citing a rise of 51 points during Muhurat Trading session last year. Going by the history, stock movement has been less during this one-hour session over the year, while the trading volume has also remained low traditionally. Despite this, Muhurat Trading has always seen a rise in equity indices over the years. So this year too, investors are expecting the markets to rise like every other year during Muhurat Trading 2021.
What Experts Say
According to experts, since Muhurat 2021 or Samvat 2078 will mark the beginning of a new year, it will be the correct time to analyse asset allocation and calculate what is working and what is not.
“Whether you invest during Muhurat trading or normal days, an investor has to check due diligence before investing. Once the company clear due diligence, an investor must go through the company’s financials and what are the aspects which will drive growth and return ratio,” Jaikishan Parmar, senior equity analyst at Angel Broking earlier said.
Experts also suggest that new investors may make token investments to mark the pious occasion in order to get started. However, they warn against trading strategy as the space for profit-booking is also limited during Muhurat Trading.
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