As Diwali also marks the beginning of the New Year, it is believed that Muhurat trading on this day brings in wealth and prosperity throughout the year.
Muhurat trading also called Mahurat trading is the stock market trading activity which happens for about an hour on the Diwali day. Usually, this trading session is held in the evening and most traders buy on this day. It is a symbolic ritual which has been performed for years and investors make some token purchases on this day.
As Diwali also marks the beginning of the New Year, it is believed that Muhurat trading on this day brings in wealth and prosperity throughout the year. The traders on Dalal Street welcome the New Year on a positive note.
The offices of stock brokers are illuminated with diyas and lamps to welcome Goddess Lakshmi, the Hindu goddess of wealth and prosperity. The time of the Muhurat trading is specified by the national stock exchanges—Bombay Stock Exchange and National Stock Exchange. A nominal trading time is allowed. Usually, the Sensex closes on a higher note on the Muhurat trading day.
This year Muhurat trading is on a Sunday. The Stock Exchanges will conduct a special muhurat live trading session from 18:15 hours to 19:30hours on November 3, 2013 on Diwali.
Muhurat means 'an auspicious hour'. According to the Hindu calendar, “Muhurat’ is considered as an auspicious time. It is believed that at the time of Muhurat, planets align themselves in such a way that the work done during this time becomes fruitful and without the influences of evil forces. Hence trading in the stock markets during the Diwali day at a specific Muhurat time is considered to bring prosperity and wealth. Trades made on this day are more for traditional, religious and sentimental reasons.
Along with the stock exchanges, commodity exchanges also have Mahurat trading for investors. For the business community, the new financial year begins with Diwali as they perform the 'Chopda or Sharda Puja' where old account books or ledgers are closed and new ones open marking the start of a promising new business year.
Whether veteran investors or newcomers, do remember to base your decision on sound research before you invest in stocks. Once you have traded, remember to stay invested in the medium to long term to ensure that you book profits from your holdings.
This is also an extremely good time to choose your financial advisor or broker to better discipline and achieve your financial goals. However, do pay heed to his advice to make the most of what the Indian markets have to offer.