Indian leading stock exchanges, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will conduct a special one-hour Diwali muhurat trading on Saturday (November 14). All the trades executed during this session would result in settlement obligations.
For the uninitiated, stock exchanges in India conduct a special one-hour trading session on Diwali, the festival of lights, which also marks the beginning of the traditional Hindu accounting year called Vikram Samvat. It is believed that trades conducted in this one hour brings prosperity, wealth and good fortune.
Muhurat trading timings:
Both BSE and NSE will permit trading for an hour, starting 6:15 pm. A block deal session will precede this main session and the pre-open session between 5:45 pm to 6:00 pm. Traders have been advised to login between 5:15 pm to 5:45 pm.
Significance of Muhurat trading:
Muhurat trading session marks the beginning of a new Samvat or Hindu calendar year. Despite all technological advancements such as Algo trading, high-frequency trading etc. stock exchanges have been conducting Muhurat trading for more than six decades. The trading community considers doing trade during Muhurat trading as a good omen as it brings blessings of Goddess Lakshmi, the goddess of wealth and prosperity.
Traders believe that on the night of Lakshmi Pooja, Goddess Lakshmi comes to reside at the place where she is propitiated. As per a BSE spokesperson, that is the reason traders and shopkeepers stay awake with lights burning all night to welcome Goddess Lakshmi any time she chooses to come.
BSE, which is the oldest stock exchange in Asia, has been conducting Muhurat trading for more than half a century. While BSE has been holding muhurat sessions since 1957, NSE is doing it since 1992. In fact, during earlier days when electronic trading was not there, traders used to physically come on the BSE floor and trade.
It is worth adding that the exchanges will remain closed on the occasion of Diwali Balipratipada on November 16. Normal trading would resume from Tuesday.
