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Tata Capital > Blog > Generic > Muhurat Trading: Meaning, Timing in 2023 & More


Muhurat Trading: Meaning, Timing in 2023 & More

Muhurat Trading: Meaning, Timing in 2023 & More

Every year, as the festive lights of Diwali begin to shimmer, the Indian stock market readies itself for a unique tradition: Muhurat Trading. This isn't any other day in the trading calendar but an event where ancient beliefs meet the modern financial world. Thousands of investors participate inDiwali Muhurat Trading, believing this day will bring them immense prosperity and luck for their future trades.

As we gear up for Muhurat Trading 2023, let's explore what this tradition entails, its timings this year and a few tips for you to make the most of this special trading session.

What is Muhurat Trading?

Muhurat Trading is a special trading session conducted by the stock exchanges in India on Diwali, specifically during the Lakshmi Puja hour, which is considered auspicious. It is a time-honoured tradition in the Indian Stock Market.

The term 'Muhurat' in Sanskrit translates to 'an auspicious time', and this trading session is believed to bring prosperity and wealth for the forthcoming year.

The concept of stock market Diwali Muhurat Trading can be traced back to ancient practices where businesses would start their financial year on Diwali with the belief that it would bring them good fortune. Over time, this practice evolved and found its way into the modern stock market, symbolising a fresh start for traders and marking the beginning of the Hindu financial year.

Today, the Diwali Muhurat Trading Stock Marketsession is eagerly anticipated by traders across the country. It's a session filled with hope, optimism, and a general belief that trades made during this time are particularly blessed.

While the session is short and lasts only for an hour, it is accompanied by a flurry of activity and excitement, making it a standout event in the financial calendar.

Muhurat Trading 2023: When is it?

Unlike the regular trading hours from 9.15 AM to 3.30 PM on weekdays, Muhurat Trading features a special one-hour trading window scheduled at a predetermined time. The exact Muhurat trading time is announced by the Stock Exchange a few days before Diwali. However, here we have a tentative schedule based on previous years.

For those awaiting the Muhurat Trading session in 2023, it is scheduled to take place on Sunday, November 12, 2023, in honour of Diwali and Lakshmi Pujan. Here's a detailed breakdown of the timings:

1. Block deal session: 5:45 PM to 6:00 PM.

This session is for two parties to agree to either purchase or offload shares at a price they've both settled on. Once this agreement is in place, they notify the relevant stock exchanges to facilitate the transaction.

2. Pre-open session: 6.00 PM to 6.15 PM

This session lasts approximately eight minutes and is crucial for determining the equilibrium price set by the stock exchanges.

3. Muhurat trading session: 6.15 PM to 7.15 PM

This is the essence of Muhurat Trading. Within this 60-minute window, the trading arena comes alive, allowing investors to acquire shares from various corporations.

4. Call auction session: 6.20 PM to 7.05 PM

This phase is exclusively reserved for the trading of illiquid securities. Such trades must adhere to particular benchmarks laid down by the stock exchanges.

5. Closing session: 7.15 PM to 7.25 PM

Marking the culmination of Muhurat Trading, this segment provides investors with a window to finalise their positions, allowing them to place orders in alignment with the closing price.

Each session plays a distinct role in theMuhurat Trading process, ensuring traders and investors have a structured and meaningful trading experience during this auspicious occasion.

Tips for Muhurat Trading

Muhurat Trading is an age-old tradition. However, there are some things to remember if you are considering participating in this year'sDiwali Muhurat Trading.

1. Understand its significance: Approach Muhurat Trading with the knowledge that it is a token purchase as a symbol of good luck rather than an attempt to make huge profits. Invest in small token amounts, as the market can be particularly volatile during this short window.  

2. Research is key: Even thoughMuhurat Tradingis a symbolic session, it doesn't mean you should skip your homework. Ensure you research the stocks you're interested in, study market trends, and be informed about the overall economic environment.

3. ​​Diversify your portfolio: As with any trading session, diversification can be a wise strategy during Muhurat Trading. Consider investing in a mix of sectors and stocks to spread risk.

4. Stay updated: Given its special nature, the timings and specifics of Muhurat Trading can differ from regular trading days. Keep an eye on announcements from stock exchanges for any changes in timings or other essential details.

5. Avoid impulsive decisions: The festive atmosphere and the shorter trading window might tempt you to make hasty decisions. However, it's crucial to stay patient and avoid impulsive trades. Stick to your researched strategies.

6. Consider long-term investments: Many seasoned traders view Diwali Muhurat Trading as an opportunity to make long-term investments. The belief is that stocks bought during this auspicious time yield good yearly returns.

7. Set a budget: Given the festive spirit and optimism, there's a chance you might get carried away. Set a budget for yourMuhurat Tradingactivities and stick to it.

8. Seek expert advice: If you're new to the stock market or unsure about your decisions, don't hesitate to seek advice from financial experts or seasoned traders.

9. Reflect and plan: Use this time not just for trading but also for reflection. Assess your financial goals, review your past trading strategies, and prepare for the upcoming year.

Final Words

The anticipation surrounding the Muhurat trading time each year underscores its significance in the financial calendar. With its rich cultural value and strong roots in Indian history and tradition, Muhurat Trading offers a special opportunity in the Indian stock market. Whether you're a seasoned trader or a newbie, participating in this session can be a unique experience and a hopeful gesture for prosperity in the coming year.

While traditions like Muhurat Tradinghold immense significance in finance, having a reliable financial partner is equally crucial. Tata Capital stands as a beacon of trust and expertise in this domain. As you navigate the financial landscape, we invite you to explore the comprehensive financial services offered by Tata Capital, ensuring your journey this Diwali is prosperous and well-guided.

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