It’s that part of the year once again when the country lights up, quite literally. As Diwali looms near, there are quite a few investors and stock market enthusiasts who will be hearing more and more about ‘Muhurat Trading Day‘ or Muhurat Trading Session. In case you haven’t heard of this before, we’ll talk you through what this means today.
What is Muhurat Trading?
Muhurat is nothing but an auspicious occasion (in Hindi) and since Diwali is considered a good time, the stock market also opens up for an hour every year outside trading hours and this day is known as Muhurat Trading. Usually, the markets are open between Mondays and Fridays but each year, it opens on a Saturday just once, as the Diwali festive season approaches.
History of Muhurat Trading
While most of the world follows the Gregorian Calendar for all intents and purposes, Hindus in India follow the Vikram Samvat Calendar. While we won’t dive into the understanding of the Hindu Calendar, it’s basically 57 years ahead of the Gregorian Calendar which means we’re looking at Vikram Samvat 2077 right now.
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As per the calendar, the Hindu New Year arrives during this time of the year and to celebrate the same, the stock markets are opened for one hour on this auspicious occasion. Thus, apart from Muhurat Trading, the day is also known as Samvat (year name). Hence, we’re sure you’ve heard of Samvat 2075, Samvat 2076 and more over the years. BSE has been holding Muhurat Trading since 1957 while NSE since 1992!
When is Muhurat Trading 2020?
Also known as Samvat 2077 trading day, this day for the markets has been set for 14th November 2020. On this day, you will be allowed one hour of trading between 6:15pm – 7:15pm on Saturday, 14 Nov. However, the rules for this special trading are that settlement will happen within the hour itself and no opens positions will carry on till the next trading day.
- Pre-opening session – 18:00 to 18:08
- Block Deal – 17:45 to 18:00
- Trading hour – 18:15 to 19:15
- Call Auction – 18:20 to 19:05
- Post Closing – 19:25 to 19:35
Historically, the market sentiment is always positive during such special trading sessions and you can expect most of your stocks to be in the green on this day as well. However, in Covid times, it’s best to be cautious. We wish all our readers a Happy Diwali, Happy New Year and for all similar updates from the stock markets in India, stay tuned to ReadScoops.com!
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