Muhurat Trading: Why It’s Considered Auspicious by Investors

Every year, as Diwali lights up homes across India, the stock market too glows with festive energy through Muhurat Trading which is a symbolic session held on Diwali evening after the Lakshmi Puja on India’s leading exchanges, NSE and BSE. 

This brief yet meaningful trading window marks the beginning of the Hindu New Year, symbolising wealth, prosperity, and good fortune for the financial year ahead, and holds deep cultural and emotional significance for traders and investors alike.

Here’s why this tradition holds a special place among market participants:

• It represents auspicious beginnings, allowing investors to start the new year on a positive note.
  

• The timing coincides with Diwali’s Lakshmi Puja, dedicated to the goddess of wealth, symbolising financial success.
  

• Traders consider it a token of faith and optimism, blending cultural beliefs with modern market participation.
  

• Both retail and institutional investors take part in this tradition, reinforcing a collective sense of goodwill in the financial community.

While Muhurat Trading lasts only for an hour, its essence extends far beyond the markets merging faith, optimism, and foresight for a prosperous year ahead.

Muhurat Trading is a special stock market session that combines finance with tradition, held annually during Diwali on India’s premier exchanges, the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

This one-hour trading window is scheduled during the evening, usually after Lakshmi Puja, and marks the beginning of the Hindu New Year. It is considered an auspicious time for investors to make their first trades of the year, symbolising prosperity and good fortune.

Key highlights of Muhurat Trading:

• Conducted once a year on Diwali evening, typically for 60 minutes.
  

• Investors often place token trades which are small, symbolic orders like ₹1, ₹11, or ₹51.
  

• Both retail and institutional traders participate to mark a prosperous start.
  

• Though largely ceremonial, normal trading rules and settlements apply.

Rooted in centuries-old belief and community participation, Muhurat Trading continues to serve as a reminder that financial growth, when guided by faith and optimism, could be both meaningful and prosperous.

Muhurat Trading has a rich legacy that dates back to the 1950s, when it was first introduced on the Bombay Stock Exchange (BSE). What began as a symbolic gesture among traditional trading communities has now evolved into a nationwide market event that bridges culture and commerce.

Origins:

• Started in the 1950s on the BSE and later adopted by the National Stock Exchange (NSE).
  

• Initially popularised by Gujarati and Marwari trading communities, known for their deep-rooted belief in auspicious beginnings.
  

• The practice was intended to invoke wealth and prosperity at the start of the Hindu New Year.

Cultural Significance:

• Conducted during Diwali, aligning with the Hindu New Year celebrations.
  

• The word ‘Muhurat’ literally translates to an auspicious time, traditionally chosen for beginning new ventures.
  

• Seen as a way to seek divine blessings for success, stability, and financial growth in the year ahead.

Evolution and Continuity:

• Over the decades, Muhurat Trading has transformed from a community practice into a national financial tradition.
  

• It continues to attract traders, investors, and institutions alike — uniting sentiment, celebration, and strategy on a single platform.
  

• The session remains a symbolic celebration of optimism and prosperity, reflecting the spirit of both tradition and modern finance.

From its humble beginnings to its present-day prominence, Muhurat Trading stands as a timeless reminder that faith and finance can harmoniously coexist in India’s ever-evolving markets.

During Muhurat Trading, stock exchanges in India—BSE and NSE—conduct a special one-hour trading session in the evening on Diwali day. This session includes all regular trading activities such as pre-open, normal market, and closing session, but within a shortened time frame.

Investors, both retail and institutional, participate symbolically by buying shares, often in blue-chip stocks, to mark a prosperous start to the new financial year (Samvat). Many traders perform Lakshmi Puja on the trading floor or at home, believing it will bring wealth and success. Despite its ceremonial nature, actual buying and selling happen, and the trades are settled like any regular market day.

Overall, Muhurat Trading combines spiritual significance with market activity, attracting enthusiastic participation across the investing community.

Muhurat Trading 2025 is set to bring the festive spirit of Diwali to the Indian stock markets, giving investors the opportunity to participate in this symbolic and auspicious trading session even during the holiday.

Date

• Tuesday, October 21, 2025: coinciding with Diwali (Lakshmi Puja).
  
  

Tentative Time Schedule

• Block Deal Session: 5:45 PM – 6:00 PM
  

• Pre-Open Session: 6:00 PM – 6:08 PM
  

• Muhurat Trading Session: 6:15 PM – 7:15 PM (main trading window)
  

• Post-Close / Closing Session: 7:30 PM – 7:40 PM

Note: Final timings to be confirmed by the exchanges closer to the actual date.

Exchange Observance

• Although October 21, 2025, is a trading holiday due to Diwali (Lakshmi Puja), both the BSE and NSE will open for this special one-hour Muhurat Trading session.
  

• Regular market operations remain closed for the rest of the day.
  
  

What Happens During the Session

• All trades placed during this session, including buy/sell orders in equities, derivatives, or block deals are settled like any regular trading day.
  

• Many participants place token trades to mark prosperity and good fortune for the year ahead.

These timings allow investors to take part in the festive trading session while observing the spirit of Diwali.

While Muhurat Trading is steeped in cultural tradition, it still operates under standard market rules and procedures, with a few festive nuances that make it distinct from regular sessions.

When It Happens

• The session typically lasts for 60 minutes in the evening on Diwali (Lakshmi Puja) day.
  

• Both the NSE and BSE announce the exact schedule in advance, including pre-open, trading, and post-close sessions.
  
  

Trading Process

• Investors can buy and sell securities as they would on any regular trading day.
  

• All trades are settled normally, and token trades small transactions symbolising prosperity are also common.
  

• Market participants often place trades in blue-chip or long-term holdings as part of tradition.
   

Symbolic First and Last Trades

• Many traders perform a “Shubh Arambh” (auspicious beginning) by placing the first trade immediately after the session opens.
  

• The last trade of the hour often symbolises closure of the old financial year and the welcoming of new beginnings.

Despite its brief duration, Muhurat Trading beautifully merges tradition with finance, bringing together celebration, optimism, and opportunity on a single platform.

Here are the reasons why Investors participate in Muhurat Trading:

Psychological Boost

• Beginning the new year with a hopeful mindset is seen as a positive start to future investments.
  

• The festive atmosphere encourages confidence and enthusiasm among traders.
  

• Participating together fosters a shared sense of community optimism within the market.
   

Ceremonial Value

• Buying shares during this session is a time-honoured ritual symbolising prosperity for the coming year.
  

• Many trades are driven by faith and goodwill rather than analysis or speculation.
  

• Investors often hold these purchases throughout the year as tokens of auspicious beginnings.
   

Goodwill Signal

• Traders and investors frequently buy blue-chip or fundamentally strong stocks to symbolise market confidence.
  

• These trades act as a gesture of faith in economic growth and stability.
  

• The practice reinforces collective participation, aligning financial action with the spirit of Diwali.

These motivations reflect how Muhurat Trading combines sentiment and symbolism, turning a short trading session into a meaningful start to the financial year.

A few practical steps can make participation both meaningful and efficient:

• Plan Ahead: Keep an eye on NSE and BSE circulars during the festive period for official timings and trading window details.

• Limit Orders: Use pre-set order prices to manage execution and avoid slippage.

• Keep Stakes Small: Since the primary goal is symbolic participation, avoid making large trades. Small trades carry the same cultural significance without adding financial risk.

• Diversify Trades: Even for symbolic trades, consider buying stocks of companies with solid fundamentals. This adds a layer of financial prudence to a ceremonial practice.

Before joining the Muhurat Trading session, investors should keep a few essential factors in mind:

1. Symbolic Investments
   Muhurat Trading is largely ceremonial, so most investors make small or token investments to mark the auspicious occasion rather than for major profit-making.

2. Market Volatility
   The trading volume is typically lower, which can lead to higher price volatility. It's advisable to avoid aggressive trading or speculative bets.

3. Stock Selection
   Many investors prefer blue-chip or fundamentally strong stocks for long-term holding. Avoid chasing price movements during this short session.

4. Short Time Window
   The session lasts for about an hour, so plan your trades in advance, especially if you’re placing multiple orders.

5. Pre-Market Research
   Despite its festive nature, it's important to analyze the stock or sector before investing. Don't skip basic due diligence.

6. Order Execution
   Due to possible fluctuations in liquidity, some orders may not get executed at expected prices. Use limit orders for enhanced control.

7. Emotional Trading
   Avoid making emotion-driven decisions. Stick to your financial goals and use Muhurat Trading as a symbolic start to disciplined investing.

Muhurat trading blends cultural tradition with market participation, offering investors a symbolic way to invite prosperity. While primarily ceremonial, it can boost market sentiment and conclude the financial calendar on a positive note.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.