Muhurat Trading 2021: Here's All You Need to Know About Stock Market Trading Time on Diwali
According to the Hindu calendar year this year Diwali is falling on Thursday i.e. November 4, 2021 with Samvat 2078. It is believed that Muhurat trading brings prosperity and wealth throughout the year
Muhurat trading is a common stock market ritual that is followed by traders in India. This is a one-hour session that is considered auspicious to invest in shares on Diwali day. In Hindu customs, ‘muhurat’ refers to a space of time in the day when planets are aligned favourably to ensure positive results. The stock exchange notifies about the time of muhurat trading every year. The benchmark index usually ends in positive during this session. This year, Muhurat trading will be held on November 4, that is Diwali. Policybazaar IPO: Key Details to Know Before Subscription Opens on November 1
Muhurat trading has special importance as it marks the beginning of a new year or ‘Samvat’. People believe investing during muhurat trading brings wealth and prosperity throughout the coming year. This practice of Muhurat Trading was started in 1957 on the BSE and in 1992 on the NSE. This year's Muhurat trading session would mark the advent of Samvat 2078 according to the Hindu calendar year that starts on Diwali
What happens during Muhurat trading?
On the day of Diwali, both NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) permit trading for a very limited time. Typically, the session is divided into the following parts:
- Block Deal Session – where two parties agree to buy/sell a security at a fixed price and inform the stock exchange about it
- Pre-Open Session – where the stock exchange determines the equilibrium price
- Normal Market Session – the one-hour session where most trading takes place
- Call Auction Session – where illiquid securities are traded. Security is termed illiquid if it satisfies the criteria set by the exchange.
- Closing Session – where traders/investors can place a market order at the closing price
Muhurat Trading Timings 2021 for BSE and NSE
|
Muhurat Trading Session |
Capital Market |
|
Block Deal Session |
17:45 – 18:00 hours |
|
Pre-Open Market |
18:00 – 18:08 hours |
|
Normal Market |
18:15 – 19:15 hours |
|
Call Auction Session |
18:20 – 19:05 hours |
|
Closing Session |
19:25 – 19:35 hours |
Trading on Zerodha during Muhurat Trading will be free as the brokerage charges for all segments will be reversed, the company has said.
(The above story first appeared on LatestLY on Oct 29, 2021 05:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).