NEW DELHI: Stock exchanges BSE and NSE will conduct the once-in-a-year Muhurat trading on Thursday from 6.15 pm to 7.15 pm as the trading community welcomes the Day 1 of the Hindu accounting calendar Samvat.
On this day, traders retain the age-old tradition of executing trades in the special one-hour session, whose timings are decided based on planetary positions, as it is deemed auspicious to start new business activity in the light of diyas and amid colours of rangoli patterns.
History suggests Diwali Muhurat trading day has hardly disappointed investors with the BSE Sensex closing higher in 11 out of the last 15 such special sessions.
BSE, which has been practicing this tradition for over six decades, will be conducting an online Lakshmi Poojan this year at 4.45 pm, which would be followed by felicitation of vaccine warriors at 5.30 pm.
As per the schedule, the block deal session will run from 5.45 pm till 6 pm. The pre-open session will take place between 6 pm and 6:08 pm.
“As a symbolic purchase on this festive eve, investors could make a token purchase of an initial investment that may deliver a long-term return on their investments. So, this is also the right time for new investors to enter the market,” said Aprajita Saxena, Research Analyst at Trustline Securities.
The equity indices have historically performed quite well on these special trading sessions, though low trading volumes have usually been observed and fewer stocks move during that short duration.
Last year, Diwali was observed on November 14. That day, the BSE Sensex ended 0.45 per cent higher. The index gained 0.49 per cent on October 27, 2019, the Diwali day. In 2018, the 30-pack index rose 0.70 per cent on Muhurat trading.
In 2017, 2016, 2012 and 2007, the index saw minor losses during the special sessions.
October 28, 2008, meanwhile, was a special day. The Sensex surprised many by climbing 5.86 per cent in the one-hour session. It settled at 9,008 for the day, but remained rangebound for the rest of the year as the global financial crisis unfolded.
