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Diwali, the festival of lights, is one of the most prominent Indian festivals. It marks the beginning of the Hindu accounting year called Samvat. Most people consider Diwali an auspicious occasion to make financial investments because of the blessings of Goddess Laxmi.
Published on 01 September 2023
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Even when it comes to the stock market, the festival of Diwali holds a special place. Stock exchanges have a special symbolic trading period on Diwali, which is known as Trading. Investors believe trading during this particular hour will help them bring good luck and earn better profits.
If you hold a trading account, it is good to know about trading time, its history, significance and relevance:
trading is a ritual followed in India, where the stock exchanges allocate a one-hour slot for trading online on Diwali. This one hour is considered auspicious for making financial investments, such as investing in shares. Each year the stock exchanges specify the trading time before Diwali.
Muhurat trading in the year 2023 will take place on Sunday, 12th November 2023. Muhurat trading occurs when the exchanges open for one hour, on Diwali.
The pre-opening session for muhurat trading starts at 6:00 PM and lasts for 15 minutes.
This is followed by a continuous trading session that starts at 6:15 PM and ends at 7:15 PM.
Event |
Time |
|
6:00 PM – 6:08 PM IST |
|
6:15 PM – 7:15 PM IST |
|
7:30 PM – 7:38 PM IST |
|
7:40 PM IST |
*Please note that the exact timings for Muhurat Trading are usually announced by the stock exchanges a few days before Diwali. The above timings are just an example and may differ from year to year.
Traditionally, Hindus, specifically the Gujarati and Marwari communities in India, highly regarded Diwali as an auspicious occasion to make fruitful financial investments. Hindus also worshipped account books and cash chests on Diwali, hoping for Goddess Laxmi, the goddess of wealth and prosperity, to bless them with better monetary luck. Stockbrokers also performed ‘Chopra Pooja’, where they worshipped the books at stock exchanges.
Over the years, this belief of making financial investments during Diwali was formally imbibed by the stock market. Even though the stock market remains closed on Diwali Muhurat Trading for all online trading accounts, a particular time is designated on the day, allowing investors with a trading account to trade online. Exchange have been offering stock market Diwali Muhurat Trading since 1957 and 1992, respectively.
Today, Trading occupies a symbolic rather than a cultural significance for online trading account holders. Traders believe in this old ritual and consider buying in this particular period to take the blessing of Goddess Laxmi. Some investors hold the stocks brought during the Trading time to pass them on to the next generation.
Each year before Diwali, the stock exchanges officially announce the Trading time. Typically, this one-hour trading session consists of:
For 2020, the Trading time for Exchange was between 6:15 PM to 7:15 PM on November 14.
Primarily because of being a favourable period for trading, the Trading time experiences high trading volumes. Further, since the festive seasons bring out the bullish side of the stock market, trading during the Trading time can be beneficial.
Moreover, if you believe in the alignment of stars for prosperity, you can consider the Trading time good for investment or trading. However, investing during the Trading time does not guarantee profits.
If you are a new investor, you can open an online trading account and make this day to start your investment journey. Existing investors can use their active trading accounts for Trading and do not need to open a special Trading account online.
If you want to take advantage of the Trading time, be careful of these points:
In all, investing during the Trading time can be advantageous but does not guarantee profits. As a wise investor, it is advisable to make investments aligned with your investment goals, time horizon and risk tolerance. If you wish to make the most of the Trading time, you can consult a professional broker to open your Trading account online.
We care that you succeed
Bringing readers the latest happenings from the world of Trading and Investments specifically and Finance in general.
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...Read MoreNo, the stock market in India is closed on Diwali, except for the one hour of Muhurat Trading.
Anyone who has an active online trading account can invest in their choice of assets during the Muhurat Trading time. If you are a new investor, you need to open your trading account before the Muhurat Trading time.
Muhurat Trading is open to all individuals who have trading accounts with registered stockbrokers in India. It is not restricted to any specific group or category of investors. However, individuals must adhere to the rules and regulations set by the stock exchanges and their respective brokers.
The trading time in India for 2023 remains largely consistent with regular trading hours. Trading typically occurs from 9:15 AM to 3:30 PM on normal trading days. However, Muhurat Trading, which takes place on Diwali day, follows a special schedule with a shorter trading window, usually in the evening.
Muhurat Trading, like regular trading, can be profitable if one makes informed investment decisions. It's important to note that the profitability of Muhurat Trading, like any other trading day, depends on market conditions, individual strategies, and the stocks chosen for investment.
There is no universal "best" Muhurat for investment, as it varies from year to year and depends on market conditions. Investors should conduct thorough research, consult with financial advisors and consider their own financial goals and risk tolerance before making investment decisions on Muhurat Trading.
Muhurat Trading is a special trading session that marks the beginning of the Hindu financial year. It is typically considered auspicious but follows a shorter trading window compared to standard trading days. The main difference is the ceremonial aspect and the sentiment associated with Muhurat Trading, which can influence market behaviour.
Muhurat Trading follows the same rules and regulations as regular trading sessions in India. Stock exchanges like the BSE and NSE may issue specific guidelines for Muhurat Trading, but these are typically related to the timing and conduct of the session. Traders and investors are expected to follow all applicable market regulations.
Participation in Muhurat Trading is not mandatory. It's a matter of personal choice for investors and traders. Some individuals participate as a tradition or to seek auspicious beginnings for their investments, while others may choose to skip it.
The risks associated with Muhurat Trading are similar to those of regular trading. Market volatility, sudden price fluctuations and liquidity issues can pose risks. Additionally, since Muhurat Trading has a shorter window, there may be limited time to react to market changes. It's essential for participants to be cautious, have a well-defined strategy and manage risks appropriately.
Day trading, also known as intraday trading, is the process of buying and selling securities in the stock market on the same day through a margin account. The objective of day trading online is to lock in profits from the movement of stock prices.
...Read More
While investing in the stock markets, there are several things that you need to look at. One such factor is the volume of a specific stock being traded at a given point in time. In the stock market, many trade exchanges take place every day. While some investors buy and sell their stocks on the same day, others hold them for a longer period.
...Read More
Investing in the stock market can be curiosity-inducing but nerve-racking, especially for beginners. Even expert traders often have questions about the stock market and the factors that influence it. So, as a lay investor, it is only natural to be confused about the ways of the stock market and its vast terminology.
...Read MoreNo, the stock market in India is closed on Diwali, except for the one hour of Muhurat Trading.
Anyone who has an active online trading account can invest in their choice of assets during the Muhurat Trading time. If you are a new investor, you need to open your trading account before the Muhurat Trading time.
Muhurat Trading is open to all individuals who have trading accounts with registered stockbrokers in India. It is not restricted to any specific group or category of investors. However, individuals must adhere to the rules and regulations set by the stock exchanges and their respective brokers.
The trading time in India for 2023 remains largely consistent with regular trading hours. Trading typically occurs from 9:15 AM to 3:30 PM on normal trading days. However, Muhurat Trading, which takes place on Diwali day, follows a special schedule with a shorter trading window, usually in the evening.
Muhurat Trading, like regular trading, can be profitable if one makes informed investment decisions. It's important to note that the profitability of Muhurat Trading, like any other trading day, depends on market conditions, individual strategies, and the stocks chosen for investment.
There is no universal "best" Muhurat for investment, as it varies from year to year and depends on market conditions. Investors should conduct thorough research, consult with financial advisors and consider their own financial goals and risk tolerance before making investment decisions on Muhurat Trading.
Muhurat Trading is a special trading session that marks the beginning of the Hindu financial year. It is typically considered auspicious but follows a shorter trading window compared to standard trading days. The main difference is the ceremonial aspect and the sentiment associated with Muhurat Trading, which can influence market behaviour.
Muhurat Trading follows the same rules and regulations as regular trading sessions in India. Stock exchanges like the BSE and NSE may issue specific guidelines for Muhurat Trading, but these are typically related to the timing and conduct of the session. Traders and investors are expected to follow all applicable market regulations.
Participation in Muhurat Trading is not mandatory. It's a matter of personal choice for investors and traders. Some individuals participate as a tradition or to seek auspicious beginnings for their investments, while others may choose to skip it.
The risks associated with Muhurat Trading are similar to those of regular trading. Market volatility, sudden price fluctuations and liquidity issues can pose risks. Additionally, since Muhurat Trading has a shorter window, there may be limited time to react to market changes. It's essential for participants to be cautious, have a well-defined strategy and manage risks appropriately.
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