Diwali Muhurat Trading: A Timeless Tradition On Nov 1

This year, the tradition of Diwali Muhurat trading comes with a twist. While Diwali’s Lakshmi Puja, a ritual that signifies prosperity and is highly valued among Indian households, falls on 31 October, the National Stock Exchange (NSE) and Multi Commodity Exchange (MCX) have scheduled their Muhurat trading session for 1 November. 

This separation of Diwali’s main religious celebration from the annual Muhurat trading has sparked a conversation among investors and market participants, questioning if the trading session can hold the same auspicious value when held the day after Diwali’s key puja.

As per Panchang, a popular guide to Hindu festivals and timings, Diwali will be celebrated in most regions on 31 October, with the highly auspicious Lakshmi Puja scheduled for the evening. The recommended Muhurat, which is the ideal time to worship Goddess Lakshmi, is between 6:56 PM and 8:27 PM on 31 October. This period, known as Pradosh Kaal, is traditionally seen as the best time to pray for prosperity, aligning with Diwali’s broader theme of wealth and blessings.

The variation in celebration dates comes from regional customs and lunar calendar differences. Amavasya Tithi, which is critical for Lakshmi Puja, begins at 3:52 PM on 31 October and concludes at 6:16 PM on 1 November. Thus, most regions will observe Diwali on 31 October, while a few areas may celebrate on 1 November. But, according to Panchang and traditional practices, 31 October is preferred for Lakshmi Puja, aligning with sunset on the Amavasya evening.

Muhurat Trading: An Important Tradition On An ‘Off’ Day?
Muhurat trading on Diwali day has long been a cherished tradition in India’s stock market culture. The NSE and MCX usually hold this one-hour trading session on Diwali evening, symbolising a fresh start for financial ventures and investments. Investors and traders often consider this session to bring good fortune for the upcoming financial year, and many participate by purchasing shares or commodities during this time.

This year, however, NSE and MCX announced that Muhurat trading would occur on 1 November, from 6 PM to 7 PM. This is the day after Diwali’s key celebration in many parts of the country. The exchanges have issued notifications confirming this schedule, noting that all transactions will be processed during this special one-hour session. The cut-off for any trade modifications is 7:10 PM, after which no new positions or adjustments to open trades can be made.

Why The Date Difference Has Sparked Debate
This unusual situation has left some market participants feeling uncertain. With Lakshmi Puja on 31 October, many feel that the traditional Muhurat trading would be better held on the same day to capture Diwali’s auspicious spirit. For those who see Diwali as a deeply significant time for financial and spiritual growth, the separation of Lakshmi Puja from Muhurat trading timing raises questions. Some believe the move could dilute the impact of this special trading session, wondering if it will truly carry the intended blessings if held a day after Diwali’s main festivities.

The stock exchanges, however, appear to have chosen 1 November to accommodate regions that observe Diwali on this date. In some communities, Diwali celebrations extend over multiple days, allowing for varied interpretations of festival customs. The NSE and MCX, by scheduling Muhurat trading on 1 November, aim to respect these regional practices, giving participants from all areas a chance to invest during an auspicious window.

Adding to the layered nature of this year’s Diwali observances, the Singapore Exchange (SGX) will observe Diwali as a holiday on Thursday, October 31, marking the same day as Diwali in India, but not aligning with India's Muhurat trading schedule.

Details For Investors On Muhurat Trading
For those who plan to participate in the session, Muhurat trading will start on November 1 at 6 PM and end at 7 PM, with both NSE and MCX sticking to this schedule. MCX will have a pre-session beginning at 5:45 PM, allowing additional preparation time for commodity traders. Furthermore, the trade settlement for transactions on both October 31 and November 1 will occur on November 4 at 8:30 AM, according to the exchanges’ guidelines.

While some investors may still feel uncertain about the timing, many are likely to embrace the tradition of Muhurat trading regardless of the date. This session offers a symbolic start to a financially prosperous year, a belief that resonates with Diwali’s ethos of hope, wealth, and new beginnings.