Among the many rituals followed around the time of Diwali, the Festival of Lights, there’s one that stands out for its unique charm and cultural significance — Muhurat Trading. This special trading session is a time-honoured tradition in the Indian stock exchanges. The term “Muhurat” refers to an auspicious time that’s carefully selected by astrologers and experts. This symbolic opening of the stock market brings together investors and traders to initiate trades on this venerated day. Let us know more about Muhurat Trading Hours 2023, its significance, and how you can prepare for this year’s auspicious Muhurat Trading hours.
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The History of Muhurat Trading
The intriguing history of Muhurat Trading stretches back to the late 1950s, when the Bombay Stock Exchange (BSE) initiated this tradition. This enduring practice has transcended the years and is now upheld by both the BSE and the National Stock Exchange (NSE). As time has passed, it has evolved into a symbol of hope, rejuvenation, and positivity for all those engaged in the financial markets.
Benefits of Muhurat Trading
Muhurat Trading offers more than just symbolic significance. It presents several benefits for traders and investors. The session serves as an opportunity to kickstart your investment journey in a favourable environment. During this time, the vibrancy and energy of Diwali blends into the markets and the investor community, creating an atmosphere of positivity and auspiciousness.
Since the trading session is quite short (only one hour long), market participants can focus and make more disciplined and thoughtful trades. Furthermore, lower trading volumes tend to keep volatility in check. Additionally, the concept of “first trades” during Muhurat Trading carries a sense of auspiciousness and is believed to set the tone for the year ahead.
Additional Read: Diwali Market Analysis
Muhurat Trading 2023
This year, Muhurat Trading will take place on 12th November. Prior to the actual trading session, stock exchanges go through extensive preparations. This includes conducting extensive checks on their trading systems to ensure they are ready for the special session. Market participants, including brokers and investors, also get ready for the trading day. Here’s how the event flows.
- Block Deal Session (5:45 PM – 6:00 PM): Allows trading of a large volume of shares in a single transaction, often pre-arranged between institutional participants and with due information provided to the stock exchanges.
- Pre-Open Session (6:00 PM – 6:08 PM): The pre-opening session begins at 6:00 PM and continues until 6:08 PM. During this phase, stock exchanges set and validate the equilibrium price.
- Muhurat Trading Session (6:20 PM – 7:05 PM): Normal trading takes place for one hour during the main Muhurat Trading session.
- Call Auction Session (6:15 PM – 7:15 PM): A dedicated session for the trading of illiquid securities that meet the criteria set by the stock exchange.
- Closing Session (7:15 PM – 7:25 PM): Modifications for call auction trades and placement of orders at market closing prices can be done during this time slot.
Do note, the market closes at 7:40 PM on Muhurat Trading day.
Additional Read: Sector Wise Performance in Diwali season
Wrapping Up
Muhurat Trading, with its deep-rooted cultural significance, is a unique and exciting way to start your investment journey. It blends tradition and finance, creating an atmosphere of optimism that can set a positive tone for your financial endeavours in the coming year. Whether you’re a seasoned trader or a novice investor, the Muhurat Trading session is an opportunity to embrace the markets with renewed energy and enthusiasm.
Be Prepared for Muhurat Trading with Bajaj Financial Securities Limited (BFSL)
Get ready for Muhurat Trading 2023 with BFSL – a 100% subsidiary of Bajaj Finance Limited. Our user-friendly platform provides real-time market data, expert insights, and a seamless trading experience. All you need is a Demat Account that can be opened for free with BFSL via an entirely online process that takes just a few minutes.
Stay ahead of the game and make the most of this auspicious trading session with BFSL.
Stock exchanges usually announce the exact timings for Muhurat Trading a few days before Diwali. As such, the abovementioned timings may vary after the announcement.
Additional Read: Muhurat Trading Strategies
Disclaimer: Trading in the stock market involves risks, and the information provided here is for informational purposes only. It is important to conduct your research and consult with a financial advisor before making investment decisions.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
Investments in the securities markets are subject to market risk, read all related documents carefully before investing
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Sources:
https://www.timesnownews.com/business-economy/markets/diwali-muhurat-trading-2023-know-date-and-time-for-trading-session-on-nse-bse-article-105009837
https://www.business-standard.com/markets/news/nse-announces-timings-for-muhurat-trading-session-2023-full-list-here-123110200189_1.html
