Why India's Stock Markets Hold A Session On Diwali: Explainer

Muhurat trading is a special, ceremonial session held on the day of Diwali, the festival of lights. It is a traditional practice for many Indian trading communities to begin their new financial year, known as Samvat, with a transaction. The belief is that buying or selling stocks on this auspicious day invites prosperity and good fortune for the coming year.
For investors, this session is more about tradition than market-moving news. It is a short, low-volume trading window that usually takes place in the evening. While the market sentiment is generally positive, the trading volume is typically low, meaning price movements are often limited. It is a symbolic start to the financial calendar rather than a major market event.
Investors should approach this session with a relaxed mindset. It is not a time to make aggressive trades based on market data. Instead, it is viewed as a ritual to mark the beginning of a new cycle. The focus remains on the broader market trends rather than the specific price action during this brief window.
Key takeaways
- Category: Stocks.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.















