Muhurat Trading: Timing, history & significance; know what changed between last Diwali and this one

'Muhurat Trading' is held every year on the occasion of Diwali. The stock market exchanges open for customary one-hour trading session on Diwali to conduct this session. As the stock market is closed for the day, the session is termed as 'Muhurat Trading'. The session is fixed as per the astrologically defined auspicious moments of the day. 

Muhurat Trading History & significance 

"It is a symbolic and old ritual, that has been retained and observed for ages, by the trading community.  As Diwali also marks the beginning of the New Year, it is believed that Muhurat trading on this day brings wealth and prosperity throughout the year," as per NSE. 

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Muhurat Trading Date & Timing  

This year, the National Stock Exchange (NSE) will hold Muhurat Trading on November 4, 2021.  NSE Muhurat Trading session will kickstart at 18:15PM on November 4. It has a block deal session prior to normal trading and is followed by a closing session. As per, BSE and NSE informed the block deal session will run from 5.45 pm till 6 pm. The pre-open session will remain in business between 6pm to 6:08 pm. 

The auspicious trading session (Muhurat Trading Session) on NSE will commence at 6:15 and close ta 7:15 pm this Diwali. The benchmark indices usually end positive during this session, however, the volumes witnessed during Muhurat Trading are lower than regular trading hours.  Call auction will be placed between 6.20 pm to 7:05 pm.  

As per exchanges, all trades executed in the Diwali Muhurat trading session would result in settlement obligations. The session would mark the advent of Samvat 2078, which starts on Diwali.  

What Changed between last Diwali and this  

Meanwhile, a lot has changed from Samvat 2077 and this Diwali. On what has changed anything that has changed between Samvat 2077 and going forward into Samvat 2078, Gaurav Garg, Head of Research at CapitalVia Global Research, "During the last Diwali, the indices gave breakout after consolidation and markets were riding on a lot of global and macroeconomic factors with major strength from Liquidity and accommodative interest rate regime. Whereas, this Diwali has seen a correction in the markets in previous month and the stocks also seem a bit richly valued as of now. 

Muhurat Trading to be free on Zerodha 

Meanwhile, trading on Zerodha will be free as the brokerage charges for all segments will be reversed, said the discount broker. "In line with our tradition over the last 11 years, brokerage charges for all trades during the Muhurat trading session will be reversed. Zero brokerage on all Intraday, F&O, and commodity trades."