Diwali Muhurat Trading:

Muhurat trading is the auspicious stock market trading for an hour on Diwali (Deepawali)

The Indian stock markets (BSE and NSE) opens for one hour for the Muhurat Trading session on Diwali Day. The Muhurat trading is practised to commemorate the start of the new Samvat (new year). That is when the traditional business community open their books of account.

The special trading window opens following Hindu Panchang and it is believed that Muhurat trading brings prosperity and wealth throughout the year. Muhurat trading is a symbolic and old ritual, that has been retained and observed for ages, by the trading community. On the BSE, the practice was started in 1957 and in 1992 on the NSE.

Since it is a short duration trading and a special trading session, investors generally see make a token trading in their trading accounts. And since it is a holiday, FII or institutional investors activities are usually absent.