Muhurta trading takes place for one hour every year on Diwali
Major stock exchanges Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are running a one-hour special Muhurta trading session to mark the beginning of ‘Hindu Samvat Year 2078’. Although the stock markets are closed on Diwali, the trading session lasts for about an hour.
On Thursday, the market benchmark BSE Sensex rose 358.92 points in the early trade of the special Muhurta session. More to follow.
What is Muhurta Trading?
Muhurta trading is a special symbolic trading session that stock exchanges organize during Diwali. Trading during this season is believed to bring prosperity and abundance to the investors throughout the year. This trading session is generally held according to Shubh Muhurta, commonly called ‘Shubh Muhurta’, and is therefore held at a different time every year. However, this is not the only reason for holding trading sessions. The market may indeed close on a positive note as Muhurta trading adds to the market thrust.
Importance of Muhurta Trading
During the Muhurta trading session, investors and brokers buy value-based stocks, which are good for the long term. It is believed that during the special Muhurta, the planets align in such a way that the entire Samvat brings good luck to the investors. The shares purchased on this occasion are also held as lucky charms by many investors.
Since Diwali is considered an auspicious day to start anything new, investors also believe that it is auspicious to buy shares and pass on to the next generation.
Due to these developments, it is observed that the markets generally move upwards during the Muhurta trading session. Investor sentiment is positive with buy orders across most segments.
Stock prices remain stable on this day as most of the investors prefer to buy rather than sell. Investors usually engage in value investing during Muhurta trading.
Read also: Diwali Muhurta Trading 2021: Check Schedule
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