Wednesday, October 30, 2024

Muhurat Trading - History

Muhurat Trading is an exceptional trading day - when the time and day is flexed to suit the sentiments of Indian Culture. No other festival - across the globe has got this special treatment. 


Vikram Samvat is a calendar system followed by Hindus and Sikhs in the Indian subcontinent. In fact, it is the official calendar of Nepal. This calendar is used as a regional one in many states, mainly in the central, west and north India.

An inscription dating back to the year 971 CE indicates the beginning of Samvat in 842 CE and is associated with King Vikramaditya. As per several historians, King Chandragupta II conferred upon himself the title of Vikramaditya, also changing the name of that era to 'Vikram Samvat'. And Diwali marks the beginning of new year (Samvat). 

Every year, on Diwali Day, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) come alive with a unique and age-old tradition known as 'muhurat trading'. This annual ritual, performed during the auspicious Laxmi Puja ceremony on Diwali, has deep-rooted significance in Indian culture and the world of finance.

The tradition of muhurat trading has its origins in the BSE in 1957 and was later adopted by the NSE in 1992. Within the Indian trading community, muhurat trading on Diwali is considered highly auspicious, and it is believed that participating in this special trading session can bring wealth and good luck throughout the year.

The celebration of Diwali, with the worship of the goddess Laxmi, the deity of wealth and prosperity, holds great importance. According to Hindu tradition, the planets align in favourable positions during this time, making it especially auspicious for financial endeavours.

Does that mean that investments made on Muhurat trading give you good profits? Not really. It just means new year and you start new book of accounts. And an invest made on the auspicious day marks a new beginning. 

Investing is a continuous process. There is no end to it. Same holds true with investing on Muhurat day also.

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