Muhurat Trading 2024: Significance, Timings and Benefits

Muhurat Trading is a traditional affair in the Indian stock market, transcending the significance of ordinary financial transactions. It is an intertwining of ancient Hindu traditions and the importance of investments in modern times. Riding on the glorious wave of Diwali celebrations, this trading session is popular among many investors across India.

In this blog, we will discuss its history, importance and cultural aspects while shedding light on why it is such a cherished tradition. Further, we will learn about the practical aspects of Muhurat Trading, such as how to participate in a Muhurat Trading session and its benefits.

What is Muhurat Trading?

A special trading session conducted on the occasion of Diwali is called the Muhurat Trading Session. The transactions done by a market participant during this session is known as Muhurat Trading. The term “Muhurat” refers to an auspicious or favorable time for performing a certain task, and the Muhurat Trading session is considered a symbolic and auspicious way to commence the Samvat, the traditional Hindu accounting year. Muhurat Trading is believed to be among those moments that bring luck and prosperity for the entire year due to which many market participants invest and trade during this session.

Muhurat Trading is conducted at a specific time in the evening on Diwali. The Indian stock exchanges decide a specific time window each year, and the trading generally lasts for one hour. Both the equity and the derivatives segments will be open to trade during the Muhurat Trading session. Market participants can trade or invest in stocks as well as trade in other derivative instruments during this session.

History of Muhurat Trading

Diwali marks the beginning of the new Hindu business year, known as Samvat, which is an auspicious occasion to begin new ventures for the business community. In the past, business managers would turn a new page in their books of account and worship Goddess Lakshmi to bless them with prosperity in the upcoming year. It can be seen as a new beginning based on the belief that starting the accounting year with fate in favor would bring prosperity.

Muhurat Trading has a long history, which is an important part of Indian culture and financial markets. It started in the Bombay Stock Exchange (BSE) in 1957. The National Stock Exchange (NSE) followed suit in 1992 by further popularizing it. Today, the trend of participation in Muhurat Trading is widely followed by investors in India.

Though the process and other details may have changed over time, the central idea remains intact, i.e., it invites prosperity, good fortune, and wealth for the future. Many participants complete their first transaction of the year or invest some form of ‘token’ amount to mark the celebrations.

Muhurat Trading Session Timings for 2024

The BSE and NSE have officially declared the date of Muhurat Trading as 1st November. The timings of the Muhurat Trading session will take place from 6 pm to 7 pm in the evening. Other details of the trading session are mentioned below:

What Happens in Muhurat Trading?

Muhurat Trading is an approximately one-hour-long trading session that shall be conducted on Diwali to mark the beginning of the Hindu New Year. Below is the breakdown of key components of this event:

• Timings: Trading session timings are decided each year based on the conditions deemed fortunate according to Hindu astrology. The exact time changes every year depending on the festival of Diwali.
• Market Participants: Investors and traders of all types, from retail investors to institutional players, participate in this event and usually buy shares in the hope of making a good fortune.
• Past Market Trends: During Muhurat Trading, the atmosphere is vibrant and filled with optimism. The stock market generally displays bullish trends, fuelled by high trading volumes and positive sentiment. Many consider this moment as an excellent opportunity to invest in stocks for the long term, particularly because of its cultural significance. However, due to the short trading window, markets can also be volatile.
• Financial Instruments: Muhurat Trading involves various financial instruments, including stocks, futures, options, commodities and mutual funds. Both delivery and intraday trading are allowed.
• Brokerage: Brokerage platforms often waive fees during the Muhurat Trading session to boost participation, making it a great opportunity for traders. However, this varies depending on the broker.

Steps to Participate in Muhurat Trading on Pocketful

Anyone wishing to participate in the Muhurat Trading session can do so in the following way:

1. Open a Trading Account with Pocketful if you do not have one.
2. Transfer funds to your trading account before the Muhurat session to avoid last-minute delays in placing orders.
3. Since the trading session is short, pre-plan your trades and shortlist the stocks that you want to buy.
4. Log in to the Pocketful web platform or mobile application before the session begins.
5. Keep an eye on the market trends and price movements because the market volatility can be high, and it is important to stay alert.

Note: Remember, Pocketful offers unlimited orders with 0 brokerage charges across all segments on the occasion of Muhurat Trading.

Benefits of Muhurat Trading

Muhurat Trading provides unique benefits, making it a special event in the stock market calendar. Here are some of the key benefits:

• Cultural Significance: Many investors view this occasion as a chance to start their financial year on a positive note, seeking good luck and success in their investments. It increases investor confidence and offers psychological reassurance, particularly for long-term wealth creation.
• History of Bullish Trends: Muhurat Trading usually features an optimistic market sentiment. The vibrant festive atmosphere and its cultural importance often inspire a bullish sentiment among investors, driving markets upwards.
• Enhanced Market Liquidity: An increase in investor participation during the Muhurat session generally results in enhanced market liquidity. This enhances the opportunities for buying and selling stocks with minimal price fluctuations, facilitating smoother transactions.

Conclusion

The Muhurat Trading session in 2024 will offer an exciting chance to engage in an event based on a unique fusion of tradition and finance. Although this will be a favorable time for making investments, it is crucial to proceed with a well-defined strategy and prudent financial judgment. Muhurat Trading presents an exciting opportunity for everyone, whether you are a seasoned trader looking to realize swift gains or a long-term investor seeking to attract long-term prosperity to your portfolio. You must stay vigilant of market fluctuations, make well-informed choices, and embrace a prosperous new financial year.

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