Outlook Business Desk
Diwali brings both celebration and a pause for investors. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed for Diwali Lakshmi Puja on October 21 and Balipratipada on October 22, marking two key holidays for the markets.
The only trading activity on Tuesday will be the one-hour Muhurat Trading session, a symbolic and long-standing Diwali ritual, scheduled from 1:45 PM to 2:45 PM on October 21.
According to the exchanges, trading will be available across equities, futures and options, currencies, commodities, and securities lending and borrowing segments. Participants can make order modifications until 2:55 PM before markets close.
Although the Amavasya tithi, the new moon phase, extends into October 21, the ideal time for Lakshmi Puja is the evening of October 20. Most households will celebrate that night, while the next day signifies the start of the new Hindu Samvat year, marked on Dalal Street by the Muhurat Trading session.
This year, the Muhurat Trading session will be held in the afternoon on October 21, unlike previous years when it was in the evening. Additionally, markets will be closed on October 18 for Dhanteras and on October 19 for the regular Sunday weekend.
The Muhurat Trading tradition has lasted for decades, often bringing positive returns. The Sensex rose in 14 of the last 18 sessions, including a 5.86% gain in 2008, and 335 points in 2024, maintaining the festive optimism.
During the one-hour Muhurat session, trading volumes are usually low, causing occasional volatility. It is not viewed as a regular trading day but as a symbolic start to the new financial year, celebrated by traders, families, and brokers.