Diwali is an opportune occasion and on this day, financial markets in India stay closed. On the occasion of Diwali, however, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are opened for an hour and this is termed as the session of mahurat trading or muhurut trading. Mahurat means an auspicious time to begin or for a ceremony to take place and mahurat trades are done by traders and investors for the imminent year. On this day, delivery trades are entered into by people with the belief of earning benefit in the coming year. It is believed that good entry in the stocks could come with mahurat trading.
On the day of the Diwali festival, this session of trading is usually held in the evening and purchase of stocks and commodities is done by several traders on this day. For years, this symbolic ritual has been performed by the investors and usually a token purchase is made by the investors.
The foundation of New Year is also marked on the day of Diwali and therefore it is believed that prosperity and wealth is resulted by the mahurat trading done on this day. New Year is welcomed by the Dalal Street traders on a positive note. Goddess Lakshmi is welcomed with lamps and diyas on this day and stock brokers illuminate their offices. It is believed that Goddess Lakshmi, the deity of prosperity and wealth bestows the devotees with her blessings.
The NSE and BSE specify the mahurat trading time. This year, Muhurat Trading is on 19th October, 2017, Thursday. The session will take place for the duration of 60 minutes from 18:30 to 19:30 hours.
On this day, the trades made are more for religious, traditional and sentimental reasons. Mahurat trading is also done by the commodity exchanges besides the stock exchanges. The ledgers or old books of account are closed by some business communities as it marks the beginning of a new financial year. A new and promising business year is opened on the occasion of Diwali.
Mahurat could also be referred as the promising hour and therefore the stocks that are best for long term are usually traded on this day. Call for buying and selling stocks are given by several trading firms and analysts. Retailers who are generally not well aware of the stock market take reference from the same.
Image taken from here