Diwali is more than lamps and sweets — for many investors in India, it’s the start of a financial year. The one‑hour Muhurat Trading session is a blend of ritual and market participation: families, first‑time investors and traders make symbolic investments to mark an auspicious beginning. In this guide you’ll find what Muhurat Trading means, how to prepare, and how to treat it sensibly — whether you’re a beginner or an experienced investor.
What is Muhurat Trading?
Muhurat Trading is a special, time‑limited trading session conducted by Indian exchanges to celebrate Diwali and the Hindu New Year. It’s largely symbolic: many investors buy a token quantity of shares, mutual funds or gold ETFs to invite prosperity. Over time this event has also become a short‑term market event where sentiment is positive, but volume is often low.
Why people participate
Tradition & blessing: Many families treat it as a ritual — the first trade of the year.
Psychological fresh start: It’s a good time to review goals and re‑balance portfolios.
Public sentiment: Positive festival sentiment can lead to a short burst of buying interest.
Practical timings (what to check)
Exchanges announce the exact Muhurat session timing each year. Before you trade, check official NSE/BSE notifications or your broker’s announcement for the exact pre‑open, Muhurat session and post‑close timings — because times can change year to year.
How to treat Muhurat Trading (smart checklist)
1. Plan ahead. Decide what you want to buy before the session. Avoid panic decisions.
2. Keep it symbolic. Consider a small token investment for luck; don’t risk large sums chasing festival gains.
3. Prefer quality. Use the session to buy or add to fundamentally strong, large‑cap stocks.
4. Avoid heavy intraday bets. Volume is usually low — slippage and spreads can be higher.
5. Check settlement rules. Muhurat trades follow normal settlement unless exchanges state otherwise — confirm with your broker.
6. Document the trade. Note why you bought it (ritual + investment) — good for long‑term discipline.
Ideas for investors (not investment advice)
Long‑term buy: Consider blue‑chip names or diversified ETFs.
SIP top‑up: Start or top‑up a Systematic Investment Plan (SIP) in mutual funds as a practical ritual.
Gold exposure: Gold ETFs or sovereign gold bonds are popular festive buys.
Remember: this is not a tip list — choose investments that match your risk profile.
Common myths vs reality
Myth: Muhurat trades always make money.
Reality: Muhurat Trading is symbolic. Market returns depend on fundamentals and macro conditions.
Trading during Muhurat ensures wealth.
Reality: Rituals are meaningful; financial outcomes are not guaranteed.
Quick FAQs
Q: Is Muhurat Trading open to all investors?
A: Yes — retail and institutional investors can participate just like any trading session, subject to exchange rules.
Q: Should beginners trade during Muhurat?
A: Beginners can participate symbolically (small amounts) or use the day to start a disciplined SIP.
Q: Will Muhurat session impact my long-term portfolio?
A: Only if you make large, poorly planned trades. Treat it as symbolic and keep long-term goals in focus.
Final takeaway
Muhurat Trading combines faith and finance. Use it as a moment of planning rather than a get‑rich‑quick opportunity. A small, thoughtful investment or a SIP started on Muhurat day can be both meaningful and prudent.