The “muhurat” trading session will be conducted for 60 minutes today, on leading bourses NSE and BSE, to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity. It would also mark the New Year for traders as per the Hindu calendar, or Samwat 2077.
What is Muhurat Trading:
Muhurat trading is the auspicious stock trading practice for an hour on Diwali (Deepawali) is done traditionally to celebrate New Year. It is a symbolic ritual which has been performed for years. 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.
Muharat trading is a practice that dates back to the year 1957 when trading started for the first time at BSE to tap the benefits of ‘Shubh Muharats’ or auspicious times. “It is widely believed that Muharat trading brings prosperity and wealth. Also, this auspicious occasion is believed to ward off the evil forces of loss. To that end, as the people of Dalal Street transition to a new accounting calendar, they ensure maximum wealth creation with value investing in high-growth stocks. On this special occasion, many investors even purchase stocks for their children, which are usually held for a long period of time.
Why Muhurat Trading:
It’s a tradition to trade during the Muhurat, as worship towards the Hindu Goddess of wealth. Trading on this day, which is also the day when the Hindu financial years begins and is considered to bring blessing for the year ahead. Also, the Gujarathi community begins there new year a day after Laxmi Puja (Muhurat Trading Day).
It is believed that “Muhurat’ is an auspicious time according to the Hindu calendar where the planets align themselves in such a way that the task you perform during this time duration, becomes fruitful and without the influences of evil forces. While getting married on a specific Muhurat is common, so is trading in the stock markets during the Diwali day at a specific Muhurat time.
Timing for Muhurat Trading 2020
BSE and the NSE will conduct Muhurat trading session on November 14
- Pre-open Muhurat Session from 6:00 pm to 6:08 pm
- Muhurat trading session Start at 6:15 and will last till 7:15.
- Post-closing Muhurat Session between 7:25 pm and 7:35 pm.
How much is Traded:
Trades made on this day are more for traditional, religious and sentimental reasons, Brokers and investors will make token investments and usually hold the stock for a year or so. So also book intra-day profits.