NEW DELHI: Muhurat trading is a one-time event that takes place during Diwali at the Indian stock market. The time is between 6:15 and 7:15 on Diwali night.
One of the customs that had kept the trading community, which was predominately Gujarati community, connected to its rich heritage. Investors put token orders and purchase stocks for their children before this session even begins. These equities are retained for a long time and occasionally never sold. These traders typically book their intraday profits, no matter how tiny, during the Muhurat session.
At the exchange, Lakshmi Puja is typically performed by stock brokers before Muhurat trading begins.
Because it is thought that Goddess Lakshmi visits and resides at the site of the puja, business owners stay open late and turn on all of their ornamental lights.
At the exchange, stock brokers celebrate “Lakshmi Puja,” and the customary Muhurat trading occurs.
On the night of the Lakshmi Puja, the Goddess is said to arrive to live at the site of the puja, during which time the merchants and shopkeepers keep their lights on all night.
Where did it begin?
With the arrival of the first traders, the custom was established. On Diwali, which heralds the beginning of the Hindu New Year, a puja is done, new accounts are opened, and new shares are purchased. This is thought to start the new year off on the right foot.
Due to the extreme volatility of this session, there is a downside to this transaction. Due to the large trading volume, the Muhurat trading session is a great time to purchase or sell equities.