Discover the Diwali Muhurat Trading time 2023: a unique, one-hour session on 12th Nov, 2023, symbolizing prosperity in Indian markets. Join the auspicious event!
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What is Diwali Muhurat Trading Time?
Diwali Muhurat trading time is a one-hour special trading session that takes place on the day of Diwali, the festival of lights and prosperity in India. It is a tradition that dates back to the 1950s, when the Bombay Stock Exchange (BSE) started this ritual. The National Stock Exchange (NSE) followed suit in 1992.
The word ‘Muhurat’ means ‘auspicious time’ in Sanskrit. It is believed that trading during this time brings wealth and success to the investors and the market. The session is aligned with the Hindu calendar, which marks the beginning of a new year, known as Samvat. The current year is Samvat 2080, which started on November 12, 2023.
When is Diwali Muhurat Trading Time 2023?
Diwali Muhurat trading time 2023 is on Sunday, November 12. The session will be held between 6:00 pm and 7:15 pm IST. The pre-open session will start at 5:45 pm and the closing session will end at 7:35 pm.
Which Segments are open for Diwali Muhurat trading?
Diwali Muhurat trading is open for all segments of the market, including equity, derivatives, currency, and commodities. You can trade in any stock that is listed on the exchanges, but you should do your research and analysis before making any decision.
How to Participate in Diwali Muhurat Trading 2023?
To participate in Diwali Muhurat trading 2023,
- you need to have a trading account with a registered broker and a demat account to hold your securities.
- You can place your orders online or through your broker, depending on your preference.
- You can also use the pre-market session, which starts 15 minutes before the actual trading, to check the market sentiment and the prices of the stocks.
What are the Benefits of Diwali Muhurat Trading?
Diwali Muhurat trading is beneficial for several reasons.
- First, it is a symbolic gesture of gratitude and optimism for the new year. Investors perform a ‘Chopda Pujan’, which means worshipping the books of accounts, and seek blessings from Goddess Lakshmi, the deity of wealth and prosperity.
- Second, it is a time to make new investments and portfolio decisions. Many investors buy stocks as a token or a long-term investment, hoping to reap the benefits in the future. Some also book their profits or losses, depending on their performance in the past year.
- Third, it is a time to celebrate the spirit of the market and the community. The session is usually marked by festive cheer, enthusiasm, and goodwill among the traders and the brokers. The exchanges also announce special offers, discounts, and prizes for the participants.
What are the risks of Diwali Muhurat Trading?
The risks of Diwali Muhurat trading are similar to those of regular trading.
- You should have a clear strategy and a risk appetite, as the market can be volatile and unpredictable during this time.
- You should not rely on rumors, tips, or emotions, but on facts, logic, and data.
- You should also be aware of the tax implications, as the income from Muhurat trading is taxable under the head of capital gains or business income, depending on your status as an investor or a trader.
What are the best stocks to buy during Diwali Muhurat Trading?
There is no definitive answer to this question, as different investors may have different preferences, goals, and risk profiles. However, some general tips to choose the best stocks are¹:
- Look for stocks that have strong fundamentals, such as earnings growth, return on equity, debt-to-equity ratio, etc.
- Look for stocks that have positive technical indicators, such as moving averages, trend lines, support and resistance levels, etc.
- Look for stocks that have a good track record of performance, dividend payouts, and corporate governance.
- Look for stocks that belong to sectors that are expected to do well in the coming year, such as IT, pharma, FMCG, banking, etc.
Look for stocks that have a low valuation, such as price-to-earnings ratio, price-to-book value ratio, etc.
What is the History of Diwali Muhurat Trading?
The history of Diwali Muhurat trading can be traced back to the 1950s, when the BSE started this tradition. The BSE was founded in 1875, and was the first stock exchange in Asia.
The BSE used to operate from a building called Dalal Street, which means ‘street of brokers’ in Hindi. The brokers used to gather on the street and trade in shares of various companies.
On the day of Diwali, they used to perform a ‘Chopda Pujan‘, which means worshipping the books of accounts, and seek blessings from Goddess Lakshmi.
They also used to place orders for stocks that they intended to hold for a long time, as a gesture of faith and hope. The NSE, which was established in 1992, followed the tradition of the BSE and started Muhurat trading in the same year.
What is the Significance of Diwali Muhurat Trading?
Diwali Muhurat trading is significant for several reasons. First, it is a way of honoring the ancient tradition of ‘Chopda Pujan’, which means worshipping the books of accounts, and seeking blessings from Goddess Lakshmi, the deity of wealth and prosperity. It is believed that trading during this time brings wealth and success to the investors and the market.
Second, it is a way of marking the beginning of a new year, known as Samvat, according to the Hindu calendar. It is believed that trading during this time sets the tone and direction for the coming year.
Third, it is a way of expressing gratitude and optimism for the past and the future. It is believed that trading during this time reflects the positive attitude and confidence of the investors and the market.
What is the impact of Diwali Muhurat Trading on the stock market?
Diwali Muhurat trading 2023 has a positive impact on the stock market, as it boosts the sentiment and the liquidity of the market. It also reflects the expectations and the outlook of the investors and the market for the coming year. Historically, the market has been bullish on the day of Muhurat trading, as people are emotion-driven rather than number-driven on that day.
However, the impact of Muhurat trading is not long-lasting, as the market is influenced by many other factors, such as macroeconomic conditions, global events, corporate earnings, etc. Therefore, investors should not base their decisions solely on Muhurat trading, but on a holistic and rational analysis of the market.
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Summary
Diwali Muhurat trading 2023 is a one-hour special trading session that takes place on the day of Diwali, the festival of lights and prosperity in India. It is a tradition that dates back to the 1950s, and is believed to bring wealth and success to the investors and the market. It is also a time to make new investments, book profits or losses, and celebrate the spirit of the market and the community.
To participate in Diwali Muhurat trading, you need to have a trading and a demat account, and a clear strategy and a risk appetite. You should also do your research and analysis before buying or selling any stock, and avoid relying on rumors, tips, or emotions.
Frequently Asked Questions(FAQs)
Q.1 What is Diwali Muhurat Trading?
Ans: It’s a special one-hour stock trading session on Diwali, believed to bring prosperity and success.
Q.2 When did Diwali Muhurat Trading start?
Ans: This tradition began in the 1950s with the Bombay Stock Exchange (BSE).
Q.3 When is Diwali Muhurat Trading in 2023?
Ans: It’s on Sunday, November 12, 2023, from 6:00 PM to 7:15 PM IST.
Q.4 Which market segments are open during this trading?
Ans: All segments, including equity, derivatives, currency, and commodities.
Q.5 How can one participate in Diwali Muhurat Trading?
Ans: Have a trading account with a registered broker and a demat account.
Q.6 What are the benefits of participating in this trading?
Ans: Symbolic act of gratitude, opportunity for new investments, and part of festive market celebrations.
Q.7 Are there any risks in Diwali Muhurat Trading?
Ans: Similar to regular trading, including market volatility and the need for informed decision-making.
Q.8 What are some tips for choosing stocks during Diwali Muhurat Trading?
Ans: Look for stocks with strong fundamentals, good performance history, and promising sector prospects.
Q.9 What is the historical significance of Diwali Muhurat Trading?
Ans: It’s a long-standing tradition symbolizing faith and hope, dating back to the 1950s and aligning with the Hindu new year.
