Muhurat Trading: Why Investors Consider It Auspicious

Muhurat trading marks a special, symbolic trading session conducted on the day of Diwali, one of India’s most important festivals. Observed in the evening after the Lakshmi Puja, this brief trading window is deeply rooted in cultural and religious beliefs. It signifies a fresh start to the Hindu New Year and is associated with prosperity, wealth creation, and positive intentions. Many traders and investors, whether retail or institutional, participate in this tradition not only to honour cultural customs but also to begin the year with optimism and good fortune.

Muhurat trading refers to a pre-defined, time-bound market session hosted by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) during Diwali. It usually lasts for an hour and is scheduled during the evening. Though regular trading rules apply, the tone is ceremonial. Traders may engage in real buying or selling, but many participate symbolically by placing token orders with amounts like ₹1, ₹11, or ₹51. The belief is that initiating a trade during this period sets a positive tone for the year ahead.

Muhurat Trading began in the 1950s on the Bombay Stock Exchange (BSE) and was later adopted by NSE. Rooted in tradition, it marks the Hindu New Year during Diwali, a time considered auspicious for starting new ventures. Traders, especially from Gujarati and Marwari communities, started this practice as a symbolic way to invoke wealth and prosperity. The term ‘Muhurat’ means an auspicious time, and this one-hour trading session blends cultural belief with market tradition, continuing as a popular ritual even today.

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.

1. Date
   Muhurat Trading 2025 is scheduled on Tuesday, October 21, 2025, coinciding with Diwali (Lakshmi Puja)
   

1. Time Schedule (Tentative; final to be confirmed by exchanges)
   Based on earlier patterns and Bajaj Broking’s estimates for 2025, this is the typical flow:
   

• 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 (1 hour)
  
• Post-close / Closing Session: ~ 7:30 PM – 7:40 PM

          2. Exchange Observance

Even though October 21, 2025 is an official trading holiday on account of Diwali Laxmi Puja, both BSE and NSE conduct the special Muhurat Trading window on that day. Regular trading remains closed

          3.What Happens During the Timings

• Trades executed during this session are settled just like any other trading day.
  
• It includes normal operations—placing buy/sell orders in stocks, derivatives, block deals, and even intraday trades are permitted as per exchange rules

When It Happens

The trading window usually lasts 60 minutes, as per exchange notices released during the Diwali week.

Trading Process

The process is identical to normal trading hours. Investors can buy or sell equities, derivatives, and other instruments during this time. While the session is largely symbolic, volumes tend to spike due to broad participation.

Symbolic First and Last Trades

Some traders place opening and closing trades in symbolic amounts to mark the beginning and end of the session. These are often in small denominations and are seen as good luck gestures, intended to attract prosperity and positive returns for the year.

Psychological Boost

Starting the year with a positive mindset plays a crucial role in long-term investing. Participating in Muhurat trading creates a sense of unity and optimism among market participants.

Ceremonial Value

For many, buying stocks during this session and holding them for the year is a ritual of wealth generation. These trades may not be based on deep financial analysis but on goodwill and belief.

Goodwill Signal

Investors often purchase stable blue-chip stocks during Muhurat trading to show confidence in the market and align with its spirit. These trades are symbolic yet meaningful within the community.

• 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.

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 better 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 concludes 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.