Muhurat Trading 2021: History, significance, time, advice for investors - Good day to start your stock market journey | Expert explains

The festival of lights, Diwali is celebrated as the victory of good over evil and knowledge over ignorance. For the Indian business community, it is a special occasion as businesses start a new accounting year by closing their old account books called ‘Chopda’ and opening new ones. Vikas Singhania, CEO, TradeSmart, on the occasion of Diwali shares his knowledge on Muhurat Trading - History, significance and why it is a good day to start your market journey.

Muhurat Trading 2021: History and significance

Explaining Muhurat Trading, Vikas Singhania, said, “During the Diwali festival, there is one hour which is considered being very auspicious as per Indian tradition. Astrologers call this time the ‘Muhurat’. Chances for the success of a task are maximized if we do it during the auspicious Muhurat, giving the doer the best possible result. This is the reason we see most businesses, from a small shop to a movie shooting, start their activity based on a good Muhurat. “

“Since 1957, the Bombay Stock Exchange also started officially celebrating the occasion by calling it Muhurat trading, which also marks the first day of a new year according to the Hindu calendar (Samvat). Though the day is a holiday, both the stock exchanges in India and the commodity exchanges are open for an hour based on the Muhurat timing,” Vikas Singhania added.

Muhurat Trading 2021: Time

“Generally, the time for Muhurat trading is somewhere in the evening and lasts for an hour. Before the trading commences, stockbrokers and their employees, traders, investors, and their families perform a 'Chopda or Sharda Pooja' to seek the blessings of Ma Laxmi, the goddess of wealth and prosperity and Lord Ganesha, the remover of obstacles. As trading hours during Muhurat trading are only for an hour, all trading activities are generally symbolic. Over the years, Muhurat trading has resulted in market closing higher, since most investors and traders initiate a buy trade,” says Vikas Singhania.

Muhurat Trading 2021: Good day to start stock market journey

“For someone who has been sitting on the sidelines and waiting for the right moment to enter the market, Muhurat day is as good a day to start as any. Since it is a new journey, there is no better time to start it but during the Muhurat hour. Investors generally buy their favourite stock during this day or one which they intend to accumulate during the year. It has been found that most blue-chip stocks are bought on Muhurat day. These days Muhurat trading day is an occasion to relook at your trading and investing strategy and your portfolio. Since by Diwali most companies would have announced their half yearly numbers, investors use the holidays to relook their portfolio and prepare a strategy for the new Samvat (Hindu new year),” explains Vikas Singhania.

Muhurat Trading: Advice for investors

Concluding his advice to investors for Muhurat trading, Singhania said,   word of caution is necessary here, especially for those millennials and new entrants in the market. One should not get carried away on this special day and use it only to make token purchases. Traders too should not be playing aggressively as volumes are low on Muhurat day and since the duration is only an hour market can see short bursts in either direction. A good beginning is said to be half the battle won. Muhurat day trading during the festival of light can illuminate your future with proper strategy and money management.”

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)