The stock exchanges open for Muhurat Trading - a special trading session that marks the beginning of the traditional New Year. Muhurat means ‘Auspicious hour’. Learn what is the history behind Muhurat trading & its significance in Indian share market with Kotak Securities. Kotak Securities is one of the largest share broking firm in India offers various share market investments options and many more platforms for investors. To know more on our services visit our website www.kotaksecurities.com
What is Muhurat Trading?
What is Muhurat Trading?
A New Year
• A new year means a new beginning for many. The calendar year followed by
the world indicates 1 January as the start of a new year.
• For most Hindus, the new year begins in summer. However, in Gujarati and
Marwari traditions, the new year starts on Diwali. India’s stock markets are
dominated by brokers belonging to these two communities. Hence, every
year, Diwali assumes a special place for the stock market.
• The festival of Diwali is celebrated across the country as everyone
welcomes the goddess of wealth – Lakshmi. It is considered an auspicious
time to earn and spend money. Since wealth creation is a big function of the
stock market – Diwali is an important day.
• The stock exchanges open for Muhurat Trading - a special trading session
that marks the beginning of the traditional New Year. Muhurat means
• Muhurat trading is one of the oldest customs at the stock market and is
practiced with utmost fervour.
Traditions on Muhurat Day
• Stock exchanges and broker offices wear a festive look as they deck up to
seek the blessings of Goddess Lakshmi. Stock Brokers and their families come
into their offices to perform puja and trade during this auspicious period.
• For the business community, the new financial year begins with Diwali as
they perform the ‘Chopda’ or Sharda Puja where old account books or Ledgers
are closed and new ones open marking the start of a promising new business
Muhurat Trading Practices
• Investors place token orders and
generally book profits during Muhurat
• Volumes are usually very thin as
most are only making a symbolic
purchase. Most traders choose to buy
on this day as it is considered positive.
exchanges, Commodity exchanges
Historical Performance of Markets
• Markets generally tend to end on a
positive note on Diwali day, even if by
a small margin.
• Since 1992, the Sensex has ended
in the positive 71% of the time with
an average gain of 1% or so on Diwali
• The Benchmark index ended in the
red on Diwali day 29% of the times
since 1992, with an average loss of
less than a percent.
Significance of Muhurat Trading
Muhurat trading and stock market
movements over a long-term period.
• Trading on Diwali day is a tradition
with most transactions having more
of a sentimental value than a real
Kotak Securities Limited, Registered Address: 27 BKC, C 27, G Block, Bandra Kurla
Complex, Bandra (E) Mumbai 400 051. Correspondence Address: 6th Floor, Kotak
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0164. Compliance Officer - Mr. Sandeep Chordia. Tel. No: 022 6605 6825. Email id:
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