Diwali Muhurat Trading 2024: Date, time and historical Sensex performance

Muhurat trading is a special and auspicious tradition in India where stock exchanges, such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), open for a brief one-hour session on the day of Diwali.

During this time, traders and investors conduct symbolic trades, seeking good luck and prosperity for the upcoming financial year. It's a unique blend of spirituality and finance, as it aligns with the belief that conducting trades during this auspicious hour can bring wealth and success.

Muhurat trading is seen as a positive start to the new financial year and is a cherished tradition in the Indian stock market.

Let’s look at muhurat trading timing and date.

Muhurat trading: Timing and date

The specific Diwali muhurat trading timing varies each year based on astrological calculations. It usually falls during the evening, providing an hour of trading that symbolises a fresh start for investors.

In 2024, muhurat trading is scheduled for Friday, November 01. The pre-opening session commences at 6:00 PM, lasting for a quarter of an hour. Subsequently, the continuous trading session initiates at 6:15 PM and concludes at 7:15 PM.

Here are the Muhurat trading timings as announced by BSE India:

The Muhurat trading session for the Commodity Derivatives Segment on November 1, 2024 will be held at:

Trading Sessions	Time
Log-in	5:15-6:15 PM
Continuous trading	6:15-7:15 PM
Trade Modification	Until 7:25 PM

The Muhurat trading session for the Currency Derivatives Segment on November 1, 2024, will be held at:

Trading Sessions	Time
Log-in	5:15-6:15 PM
Continuous trading for currency derivatives and interest rate derivatives	6:15-7:15 PM
Cross currency derivatives	Until 7:15 PM
Trade modification currency derivatives and IRD	Until 7:25 PM
Trade modification cross currency derivatives	Until 7:25 PM
Trade annulment request	Until 7:30 PM

The Muhurat trading session for the Electronic Gold Receipts Segment on November 1, 2024 will be held at:

Trading Sessions	Time
Log-in	5:00-6:00 PM
Pre-open: order entry period	6:00-6:08 PM
Pre-open: matching period	6:08-6:15 PM
Continuous trading	6:15-7:15 PM
Closing	7:15-7:25 PM
Post-closing	7:25-7:35 PM
Trade modification	Until 7:40 PM

The Muhurat trading session for the Equity Derivatives Segment on November 1, 2024, will be held at:

Trading Sessions	Time
Log-in	5:15-6:15 PM
Continuous trading	6:15-7:15 PM
Trade Modification	Until 7:25 PM
Trade Annulment Request	Until 7:30 PM

Muhurat trading: History and origin

The roots of muhurat trading can be traced back to ancient India. It's believed that King Vikramaditya started this practice. He believed that commencing Diwali muhurat trading would bring prosperity to his kingdom. Over time, it evolved into a cherished custom among traders.

Muhurat trading received official recognition in the Indian stock market during the 20th century. The Bombay Stock Exchange (BSE) was among the first to adopt this tradition in 1957, and it was later embraced by the National Stock Exchange (NSE).

As online trading was not the norm then, traders would gather physically at the stock exchange during this auspicious hour to initiate their trades.

Muhurat trading: How does it work

India's major stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), annually conduct Diwali muhurat trading.

The stock market remains closed throughout Diwali, and only a special one-hour window is opened for Diwali muhurat trading, permitting traders to make auspicious trades.

The muhurat trading time lasts for about an hour. It's divided into multiple slots, each dedicated to specific market segments. These segments include stocks, derivatives, commodities, and more.

Traders often begin Diwali muhurat trading with various religious rituals and prayers. During muhurat trading timing, traders can buy and sell stocks, starting afresh in their financial journey.

With the advent of technology, muhurat trading is not restricted to physical trading floors. Online trading platforms now allow traders and investors to participate from the comfort of their own homes.

Muhurat Trading: Historical Sensex performance

A significant aspect of muhurat trading is its impact on the Sensex, India's benchmark stock index. The performance of Sensex during Diwali muhurat trading is closely watched and interpreted as an omen for the upcoming year.

Historically, muhurat trading has often set a positive tone for the market, bringing in good luck and substantial gains for investors. It is not uncommon for a bullish trend to persist in the following trading days and months.

Over the years, the Sensex's performance during Diwali muhurat trading has shown a mix of gains and losses. Notable trends include a significant surge in 2008 (5.9 percent) and consecutive years of decline in 2016 (-0.4 percent) and 2017 (-0.6 percent). On the positive side, 2018 (0.7%) and the more recent years, 2019 (0.49 percent), 2020 (0.45 percent), 2021 (0.49 percent) and 2022 (0.88%), have seen positive gains, suggesting a more optimistic outlook during these sessions.

Frequently asked questions

1. Is intraday trading allowed in muhurat trading? Can we trade in F&O during muhurat trading?

Intraday trading is typically allowed during muhurat trading, as it follows the regular trading rules and is subject to the market's regulations. However, you must check with your specific broker and the stock exchange for any guidelines or restrictions that may apply during the muhurat trading session.

2. Can we trade in F&O during muhurat trading?

Yes, you can trade in Futures and Options (F&O) during muhurat trading. It's one of the segments available for trading during this special session, allowing investors and traders to engage in derivative transactions as part of the overall muhurat trading experience.