Diwali, the festival of lights, is one of India's most widely celebrated festivals, symbolizing the victory of good over evil and light over darkness. As the country gears up for Diwali in 2025, which falls on October 20th and 21st, the financial markets are also preparing for a long-standing tradition: Muhurat Trading. This special trading session is held on Diwali and is considered an auspicious time to invest.
Date and Timing
In 2025, Diwali will be celebrated on October 20th and 21st. The exact date can vary depending on the observation of the Amavasya period and sunset times in different cities. Lakshmi Puja, a significant part of Diwali, is scheduled for October 20th.
The Muhurat Trading session will be held on October 21st, 2025, from 1:45 PM to 2:45 PM Indian Standard Time (IST). This marks a change from previous years when the session was typically held in the evening. Trade modifications will be allowed until 2:55 PM.
Significance of Muhurat Trading
Muhurat Trading is more than just a trading session; it is a symbolic ritual deeply rooted in Indian culture. "Muhurat" is a Sanskrit word that translates to "auspicious hour," and this trading session is believed to bring prosperity and good fortune to investors. The tradition has been observed for decades and blends faith with finance.
The practice is closely linked to Lakshmi Pujan, where traders and brokers worship their account books and seek blessings from Goddess Lakshmi, the deity of wealth. It also marks the beginning of the Hindu financial year, known as Samvat 2082.
Historical Performance
Historically, the Muhurat Trading session has been associated with positive market sentiment. The BSE Sensex has closed higher in 14 of the last 18 Muhurat sessions. While the one-hour session can experience volatility due to thin volumes, investors generally view it as a ritual of renewal and optimism.
Market Details
The Muhurat Trading session will be available on major exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Transactions are permitted across various segments, including equities, futures and options, commodity derivatives, currency derivatives, and securities lending and borrowing (SLB). Commodity exchanges like MCX and NCDEX will also hold Muhurat sessions. All trades executed during the session will have normal settlement obligations.
Reasons for the Change in Timing
The shift from the traditional evening timing to an afternoon session has sparked interest and speculation. Several reasons may have contributed to this change:
- Operational and Regulatory Convenience: Afternoon scheduling may reduce logistical burdens and simplify interfacing with regular exchange systems, staff operations, clearing, and settlement processes.
- Investor Convenience: Afternoon hours may reduce conflicts with evening personal or festive obligations, making participation easier for those adhering to Diwali rituals later in the day.
Diwali Muhurat Trading 2025 is expected to be a vibrant event, blending cultural traditions with financial enthusiasm. As investors participate in this auspicious hour, they will be hoping for a year filled with prosperity and success.
