Diwali Muhurat Trade Timings:
The National Stock Exchange (NSE) will conduct its Diwali Muhurat trading session on Friday, 1st November, 2024, from 6:00 PM to 7:00 PM, celebrating the start of Samvat 2081 in the Hindu calendar.
Regular trading will remain closed for Diwali, but a special one-hour Muhurat trading session will take place from 6:00 PM to 7:00 PM, with a pre-opening session from 5:45 PM to 6:00 PM.
Market Schedule | Opening Time | Closing Time |
Equity | ||
Pre-Open | 5:45 PM | 6 PM |
Normal Market | 6 PM | 7 PM |
Closing Session | 7:10 PM | 7:20 PM |
Derivatives | ||
F&O, Currency, MCX | 6 PM | 7 PM |
All intraday positions will be squared off 10 minutes before market closing. After Market Orders (AMO) will be accepted until 5:42 PM for Equities and 5:55 PM for F&O on 1st November, for the Muhurat trading session.
Muhurat trading is a tradition that represents a new beginning for businesses, as investors make fresh financial commitments during this auspicious period. It is based on favourable planetary alignments and coincides with the Diwali celebrations.
History of Muhurat Trading
Historically, these sessions have often delivered positive returns, with the BSE Sensex closing higher in 13 of the past 17 Muhurat sessions. Although trading volumes are usually lower, certain years have seen surprising results.
The Sensex, in 2008, despite global financial turbulence, was up 5.86% during Muhurat trading, which indicates that there can be no predictability attached to these sessions.
Since 2012, this benchmark index has closed in positive territory in 9 of the last 12 Muhurat trading sessions. The most recent one was on 12th November, 2023 where the Sensex gained 355 points, or 0.55%.
Despite positive Muhurat results, the period after these sessions has been less favorable, with the index falling in 7 of the past 11 years.
Importance of Muhurat Trading
Muhurat trading symbolises the financial new year, with many investors believing it brings prosperity and growth. It’s an opportunity to diversify portfolios and open new settlement accounts, reflecting market optimism.
With the session’s short duration and potential volatility, participants should plan carefully. Intraday positions will be automatically squared off 15 minutes before market close, making timing crucial.
This is also a classic event where long-term investors can initiate new investments or make changes in positions while the season of celebration brings in enthusiasm.
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Frequently Asked Questions (FAQs)
When is the opening and closing time for Equity Segment?
Normal Market will open at 6 PM and close at 7 PM on the day of Muhurat Trading.
What is the opening and closing time for Derivatives Segment?
For F&O, MCX and Currency, the Market will open at 6 PM and close at 7 PM.
When will the pre-opening session take place at Muhurat Trading 2024?
For Equity Segment, the pre-opening session will take place from 5:45 PM to 6 PM.