Image Source : PTI Muhurat trading is held every year for an hour on Diwali
Leading stock exchanges Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) one-hour special Muhurat trading session to mark the beginning of ‘Hindu Samvat year 2078’ is underway. Though stock markets remain closed on Diwali, trading sessions are held for nearly an hour.
Market benchmark BSE Sensex surged 358.92 points in the opening trade of the special Muhurat session on Thursday. More to follow.
What is Muhurat trading?
Muhurat trading is a special symbolic trading session, which stock exchanges hold during Diwali. Trading during this session is believed to bring prosperity and abundance to investors throughout the year. This trading session is generally held as per the auspicious timing, commonly referred to as ‘Shubh Muhurat’, and so is conducted at a different time every year. However, this is not the only reason why trading sessions are held. Markets can actually close on a positive note as Muhurat trading adds to the market thrust.
Significance of Muhurat trading
During the Muhurat trading session, investors and brokers buy value-based stocks, which are good for the long term. It is believed that during the particular Muhurat, planets are aligned in such a way that brings good fortune to investors throughout the Samvat. Stocks bought on this occasion are also kept as lucky charms by many investors.
Since Diwali is considered an auspicious day to begin anything new, investors also believe buying and passing shares to the next generation is auspicious.
Because of these developments, it is observed that markets typically move upwards during the Muhurat trading session. The investor sentiment is positive with a majority of buying orders across segments.
Stock prices remain stable on this day as most investors prefer buying rather than selling. Investors typically engage themselves in value investing during Muhurat trading.
ALSO READ: Diwali Muhurat Trading 2021: Check schedule
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