Muhurat Trading is a special trading session which will be conducted for about an hour on Diwali day in India. Even though stock markets are closed for that day, trading session happens on a particular timing which changes every year depending on the auspicious time.
This year stock exchanges will host 'Muhurat Trading' on 30 October.
"Muhurat" which means an auspicious time and trading on a particular time is expected to bring prosperity and fortune to investors through out the year.
During Muhurat trading session, interested investors, stock brokers do trading and buy few stocks as a ritual.
Muhurat Trading usually takes place in the evening the date and time will be announced by exchanges.
For business and many investors, Samvat 2073 marks the beginning of the new year. The year keeps increasing with each year, next year it will be Samvat 2074. Stock prices tend to be less volatile on this day as most of the buyers prefer to buy stock rather than sell.
New investors who are planning to start trading do it at this date and time, which is considered as auspicious. Old investors buy stocks to begin the new year.
Most of the investors only buy on that day, but there have some instances where investors have ditched previous stocks.
Also, exchanges extend trading session for Gold Exchange Traded Funds and Sovereign Gold Bond on Dhanteras.
The NSE, BSE conduct a special session on the evening of Diwali. The timings for the trade would be between 1830 hrs and 1930 hrs.