BSE Sets the Stage for Diwali Muhurat Trading: In honor of Diwali, the BSE and NSE, two of the biggest stock exchanges in the world, will hold a special one-hour trade session on November 12. This meeting will begin at 6 p.m. and end at 7:15 p.m. There will be a 15-minute pre-market session before the meeting.
BSE Sets the Stage for Diwali Muhurat Trading on November 12, 2023
Some sessions mark the start of a new Hindu year, called Samvat, and it is thought that dealing at this lucky hour will bring wealth and success to all involved. The same day that the deals happen during the Muhurat trading session, they are all settled.
Market experts say that Diwali is a good time to start a new business. It is thought that investors will make money by trading during this time all year long. Since November 12 is a Sunday, normal business hours will be closed.
The BSE Sensex has closed higher in seven of the last ten special sessions, which shows that investors have had good experiences in the past.
The stock markets have ended the Mahurat trade day in the black for the last two sessions. The Sensex and the Nifty both went up by 0.88 per cent during the Muhurat trade in 2022. In 2021, they both went up by 0.49 per cent.
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It would be possible to trade stocks, commodity derivatives, currency derivatives, equity futures and options, and securities lending and borrowing (SLB) all at the same time.
For the holiday of Diwali Balipratipada on November 14, the stock markets will be closed.
History of Diwali Muhurat Trading
Indian stock market custom says that muhurat trading should happen in the evening of Diwali, a very important holiday for Indian people. It was first done at the Bombay Stock Exchange (BSE) in 1957, and the National Stock Exchange (NSE) has followed suit since 1992. It brings together people in the business world who want to be successful and lucky in the coming year.
When Goddess Lakshmi is celebrated, stock brokers’ offices look more Indian with rangoli patterns and a lot of diyas set up in a row. One way that the banking community stays connected to its rich history is through trading at certain times of the day. The stock exchange tells people when Muhurat trading will happen, and the Sensex ends the trading hour on a high note.
Trading at certain times of the day is thought to be a lucky way to start the traditional New Year. Traders put in “token orders” and buy stocks for their kids. These stocks are kept for a long time and are sometimes never sold. Traders usually take their gains during the day, no matter how small they are.
In India, Diwali marks the start of the new year. On Dhanteras and Diwali day, a prayer is done on the books and safes. A coin is a sign of wealth, and stock brokers do “Lakshmi Puja” and “Chopda Puja” at the exchange to mark the normal trade hours. Since Diwali is also the start of the New Year, selling at the right time on this day brings wealth and happiness all year long, making it a lucky start to the year.
Significance
Many investors see Muhurat Trading as important because it gives them a chance to start investing on a good note and add new stocks to their accounts. They also buy more of the stocks they already own.
Stock markets have ended in the black on this day for the past two Muhurat sessions. In 2022, both the Sensex and Nifty indices went up by 0.88 per cent, and in 2021, they both went up by 0.49 per cent.
During the one-hour Muhurat trading time, the market is likely to move in a lot of different ways.
South-bound trading with HK will resume in afternoon – stock exchanges
