Amid Diwali 2024 celebrations, the Indian stock market is getting ready for the annual Muhurat trading session, a special one-hour event that takes place every year on the day of the festival of lights.
The special one-hour Muhurat trading session will take place from 6 pm to 7 pm on November 1. The time for trade modification will end at 7.10 pm. All intraday positions will be automatically squared off 15 minutes before the session's close, necessitating careful planning for same-day trades.
Muhurat trading `for prosperity'
In India, stockbrokers view Diwali as the beginning of their financial year. Many investors see purchasing stocks during this period as a way to invite prosperity for the coming year. It's also a time for traders to diversify their portfolios and open new settlement accounts.
Although largely symbolic, Muhurat trading often draws active participation, with seasoned investors using the opportunity to adjust their portfolios. However, given the short duration, market fluctuations can be quite volatile. Experienced investors and newcomers eagerly await this festive market event.
Market performance
Historically, the BSE Sensex ended higher in 13 of the last 17 Muhurat trading sessions. In 2008 the BSE Sensex surged the most, 5.86 percent higher at 9,008. Although equity indices have performed well during these sessions, trading volumes tend to be low, and only a few stocks show significant movement in such a short timeframe.
(By arrangement with livemint.com)