Why There Is Muhurat Trading on Diwali in NSE?

Every year, as the sound of crackers fills the air and lamps light up across India, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) open their doors for a special, one-hour trading session called Muhurat Trading.

It’s not just another market session — it’s a centuries-old tradition where finance, faith, and fortune come together to mark new beginnings.

What Is Muhurat Trading?

The word “Muhurat” comes from Sanskrit, meaning “auspicious time.”

During Diwali, the festival of wealth and prosperity, traders, investors, and brokers across India perform Lakshmi Puja and trade for a short period — symbolizing the start of a new financial year and a prayer for prosperity.

Even though the markets are officially closed for the holiday, NSE and BSE conduct this one-hour symbolic session, where investors make small trades to invite good luck and positive energy for the year ahead.

Historical & Cultural Significance

Muhurat Trading began on the Bombay Stock Exchange more than a century ago, when stockbrokers would perform Lakshmi Puja in their offices and mark the start of “Samvat,” the traditional Hindu financial year.

When NSE was established in 1992, it carried forward this custom to honor India’s cultural connection between wealth and wisdom.

This makes India’s stock market one of the few in the world where spirituality and finance meet on a single trading day.

Why Muhurat Trading Matters

1. Symbol of Good Fortune

Investors believe that trades done during this time bring long-term prosperity, even if the volume is small.

2. Fresh Start of the Financial Year (Samvat)

Many traders close their previous accounts before Diwali and open new ones during Muhurat Trading.

3. Positive Market Sentiment

The energy during this session is highly optimistic — markets usually open in the green because of collective belief and festive enthusiasm.

4. Cultural Unity in Finance

It reminds everyone that markets aren’t just about money — they’re about trust, community, and tradition.

Duration and Timing

Muhurat Trading generally lasts for one hour in the evening, during the auspicious Diwali Muhurat period.

Exact timings are announced every year by NSE and BSE, usually between 6:00 PM and 7:00 PM.

Many investors also perform Puja of their trading terminals or laptops before placing their first trade of the year.

How Traders Participate

Most traders buy blue-chip or fundamentally strong stocks symbolically, even if it’s just one share.

Institutional and retail participation both increase — but the focus is not on profit or loss; it’s about gratitude and optimism.

Key Takeaway

Muhurat Trading is a beautiful example of India’s balance between tradition and technology.

While algorithms, charts, and AI guide modern trading, Diwali reminds us that faith, discipline, and gratitude are the real assets behind every investor’s success.

📌 Useful Links

• NSE India: https://www.nseindia.com

• BSE India: https://www.bseindia.com

• AMFI India: https://www.amfiindia.com

• Open your mutual funds account on below link & get your funds suggested by Dr. Vinay Prakash Tiwari: http://p.njw.bz/44600

• Open your demat account in Punch: https://punn.ch/ltp-on-punch

• Open a free demat account with Zerodha and start investing in stocks, derivatives, mutual funds, ETFs, bonds, IPOs, and more: https://zerodha.com/open-account?c=ZMPGFJ

Written by Dr. Vinay Prakash Tiwari, Founder – LTP Calculator Financial Technology Pvt. Ltd & Daddy’s International School & Hostel, Bishunpura Kanta, Chandauli, UP

⚠ Disclaimer: This blog is for informational and cultural awareness purposes only. Muhurat Trading is a symbolic and emotional event — market movements during this period should not be treated as investment advice.