Special Live Trading Session On Laxmi Pujan Muhurat; Is the Stock Market Open On Nov 1? SAMVAT 2081 Outlook

Indian stock market is open on October 31, which is celebrated as Diwali in many cities of India. However, the auspicious occasion of Laxmi Pujan Muhurat will take place on November 1, and accordingly banks and schools are closed. November 1 is an official public holiday this year. And thereby, stock market has also declared holiday on Friday, November 1. But!

BSE and NSE will carry a special live trading session on November 1, called Muhurat Trading for investors.

What is Muhurat Trading?

Muhurat trading is a special trading session that takes place every year during the auspicious day of Laxmi Pujan, also popularly known as Badi Diwali. The special trading session is only open for one hour, during which investors can buy or sell in equity, equity derivatives, derivatives, bonds, currency, commodities, and SLB segments.

The occasion is commonly practised by investors across the country. The reason is investors believe investing during Laxmi Pujan is auspicious for investment of any kind such as equities, gold, and real estate, with optimism of fruitful gains in the future.

In its latest notification, NSE said, "November 01, 2024, Friday shall be a trading holiday on account of Diwali Laxmi Pujan. Muhurat Trading will be conducted on that day."

This Diwali will also mark the onset of the Hindu calendar year SAMVAT 2081.

Here is the outlook for the market in SAMVAT 2081 by SBI Securities:

1. Nifty50 companies will likely report 11.8% earnings CAGR during the FY24-FY26E period to Rs 1,081 and Rs 1,237 in FY25E and FY26E respectively. Nifty50 has reported a 26% earnings CAGR during the FY20-FY24 period and data is indicating that earnings growth momentum is slowing down. Nifty50 has delivered fabulous returns of 28% CAGR during FY20-FY24, thereby mimicking the strong earnings growth coupled with expansion in valuation multiples.

On valuation front, Nifty50 is trading at FY25E/FY26E PE multiple of 20.2x/19.0x which is slightly higher than its long-term average PE and is also commanding significant premium to other EMs. The premium valuations are likely to sustain given the stable macros, policy and reform initiatives of the government and demographic tailwinds.

2. Inflation has peaked; Interest rate cuts likely for next 2-3 years; Domestic macros on strong footing:

As of now, data indicates that inflation has peaked out in most of the developed and emerging economies and various indicators likes employment, consumer spending etc are showing signs of slowdown in major economies like US, China, Europe etc. As the global central bankers adopt loose monetary policy, most of the economies are likely heading towards soft landing, as per SBI Securities.

Further, the brokerage said, "If central banks globally are able to finely balance inflation and growth, then emerging markets like India are likely to benefit from stable commodity prices, healthy exports coupled with structural uptick in domestic consumption. Strong macros on domestic front like low debt/GDP ratio, controlled twin deficit, record high forex reserves with 11 months of import cover, stable currency, buoyant tax collection, robust capex by government and robust capex pipeline by the private sector, etc in the backdrop will ensure that India continues to be one of the most attractive investment destinations for global investors too.

On October 31, 2024, Sensex ranged between 80,044.95 to 79,521.43, while Nifty 50 performed between 24,349.85 to 24,372.45.

Despite latest volatile tone, Sensex and Nifty have recorded double-digit gains in both YTD and 1-year period. From January 1 to October 31 so far in 2024, Sensex has zoomed by 7,275.34 points or 10.07%, while Nifty 50 jumped by 2,500.45 points or 11.50%.

In a year, Sensex has skyrocketed by a whopping 15,673.59 points or 24.54%. While Nifty 50 climbed by 5,163.05 points or 27.06%.