For many years now, stock exchanges BSE and NSE hold a one-hour special symbolic Muhurat trading session to mark the auspicious occasion of Diwali.
Considered auspicious to signify the beginning of traditional Hindu accounting year called Samvat, the practice of Muhurat trading has been retained and observed for ages the traders on Dalal Street welcome the New Year.
Stock exchanges BSE and NSE will remain closed on the occasion of 'Diwali Balipratipada'. This year's Diwali Muhurat Trading will be held on Saturday, November 14. Before the main one-hour session, there is also a block deal session and pre-open session.
Both the BSE and NSE will remain open for an hour, starting from 6.15 p.m. to 7.15 p.m with pre-open at 5.45 p.m to 6:00 p.m. Traders need to login between 5.15-5.45 p.m.
After the Muhurat trading session on Sunday, normal trading will resume next on Tuesday. While BSE has been holding Muhurat Trading since 1957, NSE has held it since 1992.
With blessings of Goddess Lakshmi, the goddess of wealth and prosperity, the one-hour live trading session is conducted during evening. The broking community performs Lakshmi Puja and trade in the equities and derivatives markets briefly on Diwali, as it brings blessings for the year ahead.
Investors open their new books in this festive session, as the word "Muhurat" means an auspicious time to start something. Many traders also purchase stocks on this occasion for the long run as they believe gains made during this session bring prosperity and wealth in the year ahead.
The time for a non-scheduled trading hour is not fixed as it changes every year. The settlement of trades executed on Muhurat trading happens the next day.
In the previous Samvat 2076, Sensex rose 192 points to end at 39,250, while Nifty added 0.65% to close at 10,598. Sensex has settled higher in 11 of the last 14 Muhurat trading sessions.