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DNA Explainer: What is Diwali Muhurat Trading and why it is best time to invest in stocks

The stock market that comprises of Bombay Stock Exchange started Muhurat Trading in 1957 while the National Stock Exchange made it regular from 1992.

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Today is Diwali and on this auspicious day, people across India perform Lakshmi Puja, the Goddess of wealth and purity. Lakshmi Puja is considered a very lucky time for trading in the Mumbai stock exchange. Like every year, the stock market has arranged Muhurat Trading 2021 for an hour. This is a symbolic trading session held by the trading community to mark the auspicious festival. 

The Muhurat Trading 2021 will be held between 6:15 pm to 7:15 pm today evening. Before the hour-long Muhurat Trading session, a window from 5:45 pm to 6 pm has been reserved for the block deal session. This will be followed by the pre-open session between 6 pm and 6:08 pm.  Call auction will be placed between 6.20 pm to 7:05 pm.  

As Diwali also marks the beginning of the New Year, it is believed that Muhurat trading on this day brings wealth and prosperity throughout the year. This time marks the start of Samvat, meaning the new financial year for the Hindu religion. The stock market however remains closed for rest of the day during the Diwali festival and opens only during the Muhurat Trading for an hour. 

The stock market that comprises of Bombay Stock Exchange (BSE) started Muhurat Trading in 1957 while the National Stock Exchange (NSE) made it a regular ritual from 1992.

What is Muhurat Trading?

Muhurat Trading is customary trading of stocks done for one hour during Diwali as it is considered auspicious.

Muhurat Trading has become more of a tradition, blended with shades of religion and culture and is an interesting event.

The traders of the stock market do special share trading in just an hour and so it is called Muhurat Trading.

Muhurat Trading 2021 is scheduled to take place between 6:15 pm to 7:15 pm on Thursday.

As per exchanges, all trades executed in the Diwali Muhurat trading session would result in settlement obligations. 

People who invest believe that the Muhurat Trading session will bring them wealth and prosperity throughout the year.

Benefits of Muhurat Trading

Muhurat Trading during Diwali is the best time to buy or sell stocks as the trading volumes are high.

It is the best time for investors as well as traders to grab benefits from the Muhurat Trading session.

As Diwali is marked for bringing prosperity and wealth to all, this can be a good day to begin investing in stocks.

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