On Sunday, November 8, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will hold a special Muhurat trading session to mark the occasion of Diwali. This information was released by both exchanges on Monday. The trading session is set to run from 2:20 pm to 3:30 pm, preceded by a 15-minute pre-opening session from 2:05 pm to 2:20 pm.
Special Muhurat Trading Session Details
The Muhurat trading session is a symbolic market event held during Diwali, which also marks the start of the Hindu New Year. It is traditionally believed that trading during this auspicious ‘Muhurat’ period brings prosperity and financial growth to all participants. Although regular market trading will remain closed on Diwali, investors will get an opportunity to buy and sell shares during this unique session on Sunday.
Typically, stock markets operate from 9:15 am to 3:30 pm on regular business days. However, the Muhurat session is considerably shorter, and market analysts have cautioned that limited trading hours may lead to increased market volatility. Rather than focusing on immediate profits, the importance of this session lies in its cultural and traditional significance.
Trading Timings and Procedures
According to the circulars issued by both exchanges, trading members can log in between 1:15 pm and 1:50 pm. Following that, bulk deals are scheduled from 1:50 pm to 2:05 pm. The pre-opening session will last from 2:05 pm to 2:20 pm, right before the regular trading start at 2:20 pm which will conclude at 3:30 pm.
Additionally, a periodic call auction session will be conducted from 2:25 pm to 3:20 pm. Closing auction activities are slated between 3:15 pm and 3:35 pm, while the closing session for non-CAS securities will run from 3:30 pm to 3:50 pm. CAS securities have a closing buffer period from 3:35 pm to 3:50 pm. Post-market trading will take place from 3:50 pm until 4:00 pm.
Various segments, including equity, commodity derivatives, currency derivatives, equity futures and options, as well as Securities Lending and Borrowing (SLB), will be available for trading during the Muhurat session. Both NSE and BSE have issued comprehensive schedules outlining the exact timings for each activity during the special session.
Since its inception in 2008, the exchanges have observed this tradition to celebrate Diwali while providing participants a chance to participate in the market on this rare occasion. The Muhurat trading session is seen as a blend of cultural reverence and financial optimism.
Market experts advise investors to be cautious as stock moves might be brisk due to the session’s limited duration. Though the session holds traditional importance, traders should be wary of volatility and not expect quick gains. The focus remains on celebrating the New Year through trading during an auspicious period.
