What is the Time of Muhurat Trading on Diwali?

Diwali, or the Festival of Lights, is one of India's most important celebrations. The Indian stock market has also connected Diwali with good fortune, establishing the practice of Diwali muhurat trading sessions.

What is Muhurat Trading?

In Hindi, the word 'muhurat' denotes auspicious beginning. It denotes a moment when the stars and planets have aligned to assure favorable outcomes. On Diwali, the Indian Stock Market opens for a one-hour trading session known as the Muhurat trading session. The Muhurat trading session is usually open in the evening. The stock market is closed for most major holidays, however it opens for a brief period during Diwali. Due of feelings related with the Festival of Lights, BSE began this practice in 1957. Muhurat trading is a practice specific to the Indian stock market. Looking at Muhurat trading history, the NIFTY 50 has only experienced negative returns once in the previous five Muhurat trading sessions.

Diwali marks the start of the fiscal year, according to the Hindu and Sikh calendar Vikram Samvat. As a result, the Muhurat trading session is regarded as an auspicious time for Investment. If you've ever traded in the stock market, you've probably heard of Diwali muhurat trading time today. This one-hour trading window is considered auspicious by traders and investors, and it is anticipated to bring money and success. This year's Muhurat Trading window will be open on October 24th, 2022, from 6:15 PM to 7:15 PM.

What Happens During Muhurat Trading Session?

On the day of Diwali, two types of investments are commonly made during a Muhurat trading session. Investors will occasionally put token orders or purchase shares for their children, which will be held for the long term and may never be sold.

Short-term or intraday traders, on the other hand, attempt to book profits during the Muhurat trading session, no matter how modest, because it indicates that they will be lucrative for the rest of the year.

Few Sectors for Shubh Aarambh

1- The first industry that may soon give an appealing opportunity is IT. TCS, HCL Tech, and Infosys have generated good quarterly figures as of the reports reported through October 13th, 2022, despite the persisting recessionary prognosis in the US and Europe.

2- Select chemicals or FMCG stocks that have performed well despite an inflationary environment may also be considered. For example, Varun Beverages, which manufactures and markets PepsiCo products, has seen double-digit increase in beverage sales volume while simultaneously seeing strong price realization.

3- India has a diverse power sector that thrives on the country's high energy consumption. The energy supplied by power firms drives the economy of the country. Shares in the power industry are among the most valuable in the country. For example, whereas thermal power has traditionally dominated, attention is progressively turning to renewable or clean energy sources. 

The UK government has stated that it will spend US$1.2 billion in renewable energy and green initiatives to assist India in meeting its aim of producing 450GW of renewable energy by 2030.

Furthermore, estimates from the Central Electricity Authority (CEA) predict that by 2029-30, thermal power's proportion would fall from 78% to 52%, while renewable power's share will rise from 18% to 44%. As a result, investing in renewable energy-focused power sector shares in 2022 will be a wise move.

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Based on the themes mentioned above, our long-term Fundamental Diwali picks include ITC, Ashok Leyland, Polycab, Sundaram Finance, Indian Hotels, IDFC First bank, Westlife development, NOCIL, Aptus Value Housing, Adani Green Energy Ltd, Adani Power Ltd, Adani Transmission Ltd, India Power Corporation Ltd, and many others.

Last Thoughts

The Muhurat trading session, which is open for one hour around Diwali, is said to be an auspicious time to make stock market diwali muhurat trading. However, we must not lose sight of the fundamental principles of investing based on research and investing at the correct price. Proceed with prudence and the Goddess Lakshmi's blessings!

FAQs

What Time is Muhurat Trading?

The trading period that begins during Diwali is known as the muhurat trading session. On October 24th, trading hours, or rather the trading hour for the Muhurat session, will be 1 hour from 6:15 PM to 7:15 PM.

Is it Profitable to Trade Muhurats?

Muhurat trading is distinguished by huge trading volumes, and we frequently see markets rising. It should be remembered, however, that there are no guaranteed returns in the stock market. Whether muhurat trading or not, investors should exercise prudence and make investments based on research.

What exactly is Muhurat Trading?

Unlike other major festivals, trading is permitted on Diwali during the 1-hour trading window of the Muhurat trading session, which begins on Diwali evening. Because Diwali celebrates the triumph of light over darkness, making investments or transactions during the muhurat trading time is said to be fortunate.

Is F&O Permitted in Muhurat Trading?

During the Muhurat trading session, the futures and options (F&O) market will be open.