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! 