Stock Market

Diwali Muhurat Trading 2025​ – How to Trade Muhurat Trading

In the Indian stock market, Diwali Muhurat Trading holds a special place — it’s not just about buying and selling shares; it’s about tradition, prosperity, and new beginnings. Every year, stock exchanges open for a one-hour special trading session during Diwali, known as Muhurat Trading, considered an auspicious time to start new financial ventures.

This article will explore what Diwali Muhurat Trading means, its history, timing, how to prepare for it, strategies to trade effectively, and tips for maximizing profits during this symbolic yet significant market event.

What Is Diwali Muhurat Trading?

Diwali Muhurat Trading is a special one-hour trading session conducted by India’s stock exchanges (NSE and BSE) on Diwali — the festival of lights. It marks the start of a new financial year for traders, often referred to as Samvat, and is considered a time of good fortune and positive beginnings in Indian culture.

During this session, investors perform “Lakshmi Puja” to honor Goddess Lakshmi, the deity of wealth, before placing their trades — symbolizing prosperity and success for the upcoming year.

Key Characteristics:

  • Conducted only once a year on Diwali evening
  • Symbolic rather than speculative for many traders
  • Considered highly auspicious for starting new portfolios
  • Observed by both institutional and retail investors

History and Cultural Significance

The tradition of Muhurat Trading dates back to the early days of the Bombay Stock Exchange, long before India’s financial markets became digital. For decades, Gujarati and Marwari traders have observed Diwali as the beginning of their financial year (Samvat).

Performing the first trade during the Diwali muhurat was believed to invite wealth and blessings for the entire year ahead.

Even today, large trading houses, brokerage firms, and investors perform rituals and puja ceremonies before the Muhurat session begins — symbolizing the deep-rooted connection between spirituality and finance in India.

Why Muhurat Trading Matters in Modern Markets

While rooted in culture, Muhurat Trading has evolved into a blend of sentiment and strategy in modern finance.

  • For many, it’s a sentimental investment — purchasing blue-chip or long-term value stocks as a Diwali tradition.
  • For others, it’s a short-term opportunity, with increased volatility and volume offering potential gains.

Despite being symbolic, market sentiment during the Muhurat hour often sets the tone for investor optimism for the coming year.

In the digital era, where algorithms and analytics dominate, Muhurat Trading stands as a rare reminder of emotion, belief, and human connection in financial markets.

Timings of Muhurat Trading 2025

As announced by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), Diwali Muhurat Trading 2025 is expected to take place on October 21, 2025 (tentative date).

Session TypeTimings (IST)
Pre-Open Session6:00 PM – 6:08 PM
Muhurat Trading6:15 PM – 7:15 PM
Post-Session7:30 PM – 7:45 PM

(Note: Exact timings are officially confirmed by the exchanges closer to Diwali.)

During this short window, trading activity surges as both institutional and retail investors participate actively.

How to Prepare for Muhurat Trading

To make the most of this symbolic hour, preparation is key.

Steps to Get Ready:

  1. Review your portfolio: Identify potential long-term stocks worth holding.
  2. Set up trading accounts in advance: Ensure your demat, trading account, and funds are ready.
  3. Monitor market sentiment: Track blue-chip stock performance in the days leading up to Diwali.
  4. Decide your objective: Are you investing for long-term prosperity or short-term gain?
  5. Plan your order type: Use limit orders to avoid volatility spikes.

Pro Tip:

Many investors buy one share each of fundamentally strong companies — symbolizing the beginning of a prosperous year ahead.

Best Muhurat Trading Strategies for Investors

1. Invest in Quality, Not Quantity

Since this is a symbolic session, focus on high-quality, fundamentally strong stocks — companies with strong balance sheets and consistent growth.

2. Avoid Overtrading

Volatility tends to rise during Muhurat Trading. Avoid making impulsive trades. Instead, treat this session as a ceremonial start rather than a profit-chasing event.

3. Diversify with ETFs or Index Funds

If unsure which stocks to pick, consider investing in Nifty or Sensex ETFs for broad market exposure.

4. Set Realistic Expectations

Remember — this is a one-hour trading session. Don’t expect massive returns; the focus is on auspicious investing, not speculation.

5. Leverage Sentiment Stocks

Stocks with strong festive demand — such as FMCG, auto, and jewelry — often perform well during Diwali.

Top Sectors and Stocks to Watch This Diwali

Investors often favor sectors aligned with India’s festive spending and long-term growth trends.

Promising Sectors:

  • FMCG: Hindustan Unilever, ITC
  • Automobiles: Tata Motors, Maruti Suzuki
  • Banking & Finance: HDFC Bank, ICICI Bank
  • Technology: Infosys, TCS
  • Energy: Reliance Industries, NTPC

Festive Investment Ideas:

  • Gold ETFs and Sovereign Gold Bonds
  • Mid-cap growth stocks
  • Electric vehicle and renewable energy plays

Comparison Table: Muhurat Trading vs Normal Trading

FeatureMuhurat TradingRegular Trading
Duration1 hour (evening)6 hours (9:15 AM–3:30 PM)
PurposeSymbolic & auspiciousRegular business
ParticipantsAll major investorsInstitutional & retail
Market SentimentOptimistic, festiveNeutral/variable
VolatilityHigher due to short windowModerate
ObjectiveTradition & positive start

Advantages and Considerations

Advantages

  • Symbolic start to financial year (Samvat)
  • Positive market sentiment and festive optimism
  • Ideal for portfolio rebalancing or new entries
  • Participation across investor classes

Considerations

  • Limited session time can cause price volatility
  • Liquidity may differ across segments
  • Avoid speculative trades without research

FAQs on Diwali Muhurat Trading

Q1. What is Diwali Muhurat Trading?

It’s a special one-hour trading session on Diwali evening considered auspicious for beginning new financial ventures.

Q2. Why is it important?

It symbolizes prosperity and marks the beginning of the Hindu financial year (Samvat).

Q3. Can beginners trade during Muhurat Trading?

Yes, beginners can participate. It’s an ideal time for small, symbolic investments.

Q4. Which stocks should I buy during Muhurat Trading?

Focus on blue-chip companies or ETFs for long-term stability.

Q5. Are markets open globally during this session?

No. Muhurat Trading is unique to Indian exchanges (NSE & BSE).

Q6. Does Muhurat Trading guarantee profits?

No — it’s symbolic. Market risks remain, as with any trading day.

Conclusion

Diwali Muhurat Trading beautifully blends tradition with technology, symbolizing prosperity through participation in India’s vibrant markets. Whether you’re a seasoned trader or a beginner, this one-hour session is a reminder that wealth creation begins with intention, discipline, and patience.

Trading during Diwali is less about short-term gains and more about reaffirming your financial goals for the coming year (Samvat 2082).

So, as the diyas light up your home this Diwali — let your investments shine too.

About Metaverse Trading Academy

Metaverse Trading Academy is India’s next-generation financial education platform dedicated to empowering traders and investors with AI-driven insights, stock market training, and blockchain-based learning tools.

Our mission is to blend technology, education, and innovation to make trading smarter, safer, and more accessible for everyone. From beginner-friendly courses on stock trading, crypto, and metaverse finance to advanced algorithmic trading education, we prepare you for the future of financial markets.

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