Can someone explain the significance of this Samvat and why is there a special trading session?
Muhurat Trading: The customary trading tradition on the day of Diwali is unique to India where markets open for a short duration to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity (Lakshmi Puja). Lots of traders and market old hands use Deepawali (Lakshmi Puja) as a reference point to record how they and the markets have fared in a year. This is a legacy from days when traders and businesses used to end the financial year at the change of the lunar ‘Samvat’ year on Deepavali.
The Muhurat trading that is conducted on Lakshmi Puja on NSE & BSE is a centuries-old tradition and the day holds significance as it marks the beginning of the new year, as per the Hindu calendar or Samvat 2075 (Year 2018 as per the English calendar).
Muhurat Trading would be conducted on November 07, 2018, between 5:30 PM and 6.30 PM for stock exchanges. Here are the circulars for the equity segment, currencies and MCX. All MIS, BO, CO positions will be squared off 15 minutes prior to market closing.
Customarily, new traders start trading in the capital markets on this day and old ones usually buy some stock to mark the beginning of the year. Historically, the broader indices have stayed positive on this day and news channels with prominent personalities discuss their prediction for the next Samvat, this time 2075.
On a side note, if you’re trading with Zerodha, check out this post. There’s no brokerage charged for this session!
Even for squaring off old positions?
Its used as a marketing tool by the exchanges, just like Mega Sales by Supermarket or e-commerce, just to exploit the emotional Indian buyers sentiments. I as value investor personally feel this day is the worst day for buying any stocks.
@sabyasachi_sadhu not so. You cannot doubt everything. Personally a prayer to Lakshmi and buy of few quantities that auspicious evening will make us rich in years to come. Think positive and u really become rich
I am actually thinking positively but my thinking angle is different from the masses. How praying to Maa Laxmi and investing on that auspicious day will make us rich? What’s the logic? I believe when everybody buying its the worst time to buy, I buy when people sell.
U r not getting sir. Buying that day is based on belief delivery based blue chips in small quantity. It is symbolic and token value buy in prayerful mood.
Not that u have to do huge intraday or futures
We believe and buy big names TCS reliance that day. And one day u will get ur price with such blue chips
OMG that’s really funny! I am sorry। People atleast should not treat stocks as a commodity. Any well researched value stocks will give handsome return in the years to come, bought on anytime (regardless मुहूर्त and all).
Either he is trolling or he believes in this. I don’t know why you have to mock someone’s belief though.
Think of this as buying Gold on Dhanteras. Now gold hasn’t been a good investment medium for a long time, but still people buy some amount of gold due to their belief. You could argue that this is just a way for companies like Tanishq to buy into their products as this money was better invested elsewhere. But for many it is just a token amount and even they don’t consider it as an investment.
In the same way, say buying 1-2 shares of bluechips like HDFC or L&T is hardly a loss and is just a token gesture.
P.S. In fact, HDFC seems to be available at a decent value for holding it on to medium to long term.
Yes i Consider auspicious and buy good shares. Let it be funny to u
Yes I agree with you, it’s our tradition. I may be more a practical person. I separate my investments from religious beliefs. If you are serious about your investments then you should not depend upon on particular day. I think our exchanges just exploiting our belief system.
We should be happy they continue grand old tradition and does not suppress in name of secularism
Even coming to your point now is right time to buy blue chip stocks and we will never regret in long term. My great uncle who was a trader in old times now in his 85s would tell stories of all this tradition. The whole idea is to spread positive vibrations around and increase positive attitude and confidence. Even modern day psychologist agree on avoiding pessimism and think big.
Faith can move mountains.
I am not against faith. But for investing we should look for opportunities and that may come any day. For me each day is auspicious day if you think it like that. For thinking positive and avoiding pessimism, you have to work from your inner soul, I am positive 365 days a year.
If you are wise you should not argue with such guys. This person regularly insults/makes fun of others if you see all his past posts. I hope moderators take a control over blogs. i feel we should use this platform for creative ideas/queries/thoughts etc.
Why can’t you take it as exchange is respecting its customers or investors beliefs and allowing to trade on this day. If you do not believe you don’t login on that day. Why to argue on someone’s belief.
I am not arguing, I am giving my view. I am not a birdbrain kind of person and never trying to look cool. I see everything with practical viewpoint. I am not against this auspicious day, but thinking something will happen magical if you invest on this day it will be a mistake. Think deeply with this matter. There should not be a fixed date for buying stocks.
Buying 1 or 2 quantity of a stock gives some one some happiness it seems absolutely okay. Expectation of some magic is their problem, I do not presume it is any of our concern.
Difference of opinion is important just like F&O otherwise there won’t be much difference between machines and humans. I do appreciate your point of view, but yet again I give a little extra weightage to emotion and a bit of love.
Hi, 15 Years back, I am also having the same attitude. Now I realized that the reason is nothing - Ignorance and Ego.
If we think we are not birdbrain and will see everything with practical view point, one day we will realize that something is beyond our control in nature.
no one asked your view. Looks like you are enjoying hurting people belief and faith. Let other do what they are doing or they have faith.
Well said…everyone has their own faith so you should never hurt others sentiments/feelings. This Sadhu has always been trolling me without any reason on several occasions but he gets bashed up by lot of people. He surely needs to change his name & drastically change his attitude…haha. Wishing everyone a very happy Diwali & happy muhurat trading. The stocks i’ve bought on Muhurat have given me decent profits…!!