Satyanarayan Mohapatra
Diwali, the festival of lights, illuminates not just homes and streets but also the Indian stock market. While fireworks sparkle and sweets are shared, a unique tradition unfolds in the financial world: “Muhurat Trading”. This symbolic trading session, held on Diwali evening, is more than just a ritual; it's a blend of ancient beliefs, auspicious beginnings, and the enduring optimism that this festival embodies.
Imagine a time when the Vikram Samvat calendar, guided by the moon's phases, reigned supreme. Diwali marked the start of the new year, and King Vikramaditya himself believed it was the most auspicious time to launch new ventures. This belief resonated with stockbrokers, who began opening fresh settlement accounts for their clients during Diwali, laying the foundation for the Muhurat Trading tradition.
Muhurat Trading: tradition and optimism
In Hindu and Sikh traditions, a "Muhurat" is an auspicious moment, a time when the stars align to favor new beginnings. “Muhurat” Trading, officially embraced by the Bombay Stock Exchange (BSE) in 1957 and later by the National Stock Exchange (NSE) in 1992, embodies this spirit of optimism and prosperity.
This symbolic trading session, typically lasting an hour on Diwali evening, is a time when investors seek to align their financial fortunes with the festive cheer. It's a belief that investing in fundamentally strong stocks during this auspicious period will bring good luck and prosperity in the year ahead.
And the numbers seem to support this belief. Over the past five years, the BSE SENSEX has consistently gained an average of 0.6% during Muhurat Trading, a testament to the positive sentiment that pervades the market during Diwali.
This year, Muhurat Trading is likely to be held on November 1st, offering investors an opportunity to participate in this unique tradition and embrace the spirit of new beginnings.
More than a ritual
Muhurat Trading is more than just a symbolic gesture; it's a reflection of India's rich cultural heritage and its deep-rooted belief in auspicious timings. It's a time when the worlds of finance and tradition converge, creating a unique and vibrant atmosphere in the stock market.
As Diwali approaches, investors across India are gearing up for this special trading session, their hopes and aspirations intertwined with the festive spirit. It's a time to embrace the optimism that Diwali brings, to seek new beginnings, and to invest in a future filled with prosperity and success.
