Muhurat trading is the trading activity in the Indian stock market on the occasion of
Diwali (Deepawali), a big festival for citizens of India. Usually, it is held during evening hour and is announced by the stock market exchanges notifying traders and investors of the non-scheduled trading hour.(dominant sect of people in
Dalal Street
Dalal Street ( hi, script=Latn, dalāl path, mr, script=Latn, dalāl gallī) in Financial District of Fort in Mumbai, is the address of the Bombay Stock Exchange and several financial institutions of the world. The term “Dalal Street” ha ...
) who do similar trading on hours of Diwali.
History
More than six decades ago, the tradition of Muhurat trading was born. It all started at the Bombay Stock Exchange (BSE) in 1957. Fast forward to 1992, and the National Stock Exchange (NSE) also embraced this auspicious practice. Since then, every Diwali has been marked by the time-honored Muhurat trading session. It's a tradition that unites the financial community in seeking prosperity and good fortune for the year ahead.
Trading activity
Stock brokers' offices take on a distinctly ethnic look with neatly designed
rangoli
Rangoli is an art form that originates from in the Indian subcontinent, in which patterns are created on the floor or a tabletop using materials such as powdered lime stone, red ochre, dry rice flour, coloured sand, quartz powder, flower petal ...
patterns and innumerable
diyas lined up to welcome
Goddess Lakshmi
Lakshmi (; , sometimes spelled Laxmi, ), also known as Shri (, ), is one of the principal goddesses in Hinduism. She is the goddess of wealth, fortune, power, beauty, fertility and prosperity, and associated with '' Maya'' ("Illusion"). A ...
. Muhurat trading is one of the many links the broking(trading) community retains with its rich past. The practice of Muhurat trading has been retained and observed for ages. The schedule of the muhurat trading is announced by the stock exchange and the
Sensex
The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply SENSEX) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. The 30 ...
closes on a higher note at the ending of the trading hour. With this, the traders on
Dalal Street
Dalal Street ( hi, script=Latn, dalāl path, mr, script=Latn, dalāl gallī) in Financial District of Fort in Mumbai, is the address of the Bombay Stock Exchange and several financial institutions of the world. The term “Dalal Street” ha ...
welcome the New Year on a positive note. Many start the New Year with traditional ceremonies and
pujas. This tradition has been followed as a ritual for many years.
Muhurat trading is traditionally an occasion for an auspicious beginning to the traditional New Year. Investors place token orders and buy stocks for their children, which are held for the long term and sometimes never sold. Traders normally book their intraday profits, however small they may be.
Tradition
Amongst the several communities of India, the new year begins with Diwali. A puja (ritual) is performed to accounts books and safes on
Dhanteras
Dhanteras ( hi, धनतेरस), also known as Dhanatrayodashi ( sa, धनत्रयोदशी), is the first day that marks the festival of Diwali in most of India.
It is celebrated on the thirteenth lunar day (Trayodashi) of Krishn ...
as well as on Diwali day to signify the beginning of a new year. A coin - which signifies wealth - is placed on the account books before the puja. Stock brokers perform 'Lakshmi Puja' and 'Chopda Puja' at the exchange and the customary Muhurat trading takes place. It is believed that on the night of
Lakshmi Puja
Lakshmi Puja () is a Hindu occasion for the veneration of Lakshmi, the goddess of prosperity and the supreme goddess of Vaishnavism. The occasion is celebrated on the amavasya (new moon day) in the Vikram Samvat Hindu calendar month of Ashwa ...
, the Goddess comes to reside at the place of the puja during which the traders and shopkeepers stay awake with lights burning all night.
As
Diwali also marks the beginning of the New Year, it is believed that Muhurat trading on this day brings in wealth and prosperity throughout the year. An auspicious beginning is thus made on the first day of the year.
See also
*
National Stock Exchange of India
National Stock Exchange of India Limited (NSE) is the leading stock exchange under the ownership of various group of domestic and global financial institutions, public and privately owned entities and individuals. It is located in Mumbai, M ...
References
{{reflist
External links
Mohurat tradingat National Stock Exchange, India website
Stock exchanges in India
Bombay Stock Exchange
Culture of India