HISTORY AND SIGNIFICANCE OF DIWALI MUHURAT TRADING IN INDIA!
Diwali Muhurat Trading is a special tradition in India where stock exchanges open for a short period on the day of Diwali, the festival of lights. This practice holds historical and cultural significance and has been observed for several decades. Here’s a brief history and significance of Diwali Muhurat Trading in India:
History:
The origins of Diwali Muhurat Trading can be traced back to the early 1970s when the tradition began on the Bombay Stock Exchange (now known as BSE). The term “Muhurat” refers to an auspicious time in Hindu astrology, and Diwali is considered one of the most auspicious days in the Hindu calendar. The stock market opened for trading for a brief period on Diwali, allowing traders and investors to buy and sell shares. Over time, this practice gained popularity and extended to other major stock exchanges in India, including the National Stock Exchange (NSE).
Significance:
- Auspicious Beginnings: Diwali Muhurat Trading symbolizes the start of the Hindu New Year and is considered a propitious time to make financial decisions. It is believed that trading during this time can bring prosperity and good fortune.
Market Sentiment: This brief trading session is seen as an opportunity for traders and investors to assess market sentiment and initiate positions for the upcoming year. It can set the tone for market behavior in the coming months.
Promoting Traditions: The tradition of Diwali Muhurat Trading blends financial activities with cultural and religious celebrations, encouraging the community to maintain their cultural ties while participating in the stock market.
Boosting Liquidity: The short trading session enhances liquidity in the market as many traders and investors actively participate during this time. It can lead to increased volumes and heightened market activity.
- Market Confidence: The continuity of Diwali Muhurat Trading over the years has come to represent a symbol of confidence in the Indian financial markets, reflecting their stability and resilience.
It’s important to note that Diwali Muhurat Trading lasts for a short duration, typically an hour or so, and the timing varies each year. The specific timing is determined by the stock exchanges and is based on astrological calculations. This tradition is celebrated not only in the stock markets but also in commodity markets and other financial markets in India.
Diwali Muhurat Trading will be held on November 12, between 6 pm and 7.15 pm.
CONCLUSION
In summary, Diwali Muhurat Trading in India has a rich history and cultural significance. It blends financial activities with the festive spirit of Diwali, marking an auspicious beginning for traders and investors while promoting traditional values.
About Author
Vinayak Savanur
Founder & CIO at Sukhanidhi Investment Advisors, a SEBI registered equity investment advisory firm. He has nearly a decade of experience in the stock markets and has been a holistic financial planner.
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