NSE & BSE Muhurat Trading Time for Diwali

By Angel Broking | Published on 9th November 2020 | 6693

NSE & BSE Muhurat Trading Time for Diwali

Diwali is one of the chief festivals of the Hindus, and it also has a special significance to the business communities in India. The day of Diwali ushers the Hindu accounting year. Gujaratis and Marwaris, the two primary business communities in India, perform the poojas of ledgers and the wealth chest following a century-old tradition before the new account year is open. Borrowing that tradition, in 1957 muhurat trading started in the Bombay Stock Exchange. On this day, a special trading session is conducted during the auspicious hour of the day or muhurat, when Hindu traders engage in buying and selling of securities. Stockbrokers offer Chopra Pooja or worshipping the accounting books before the special trading session begins.

Muhurat trading takes place in all the Indian bourses. The exchanges declare the time of the muhurat trading in advance like, muhurat trading in 2020 will take place on November 14.

If you want to participate in muhurat trading, you must learn a couple of facts about it.

  • Muhurat trading denotes the beginning of the Hindu accounting year or Samvat. Traders believe that trading on this day will bring them luck and prosperity
  • Muhurat trading is a special one-hour trading window based on Hindu astrology. It usually happens in the evening hours. In 2019, muhurat trading timings were 6:15 pm to 7:15 pm
  • The tradition of muhurat trading is almost half a century old, starting in 1957 in BSE
  • The market usually remains bullish during muhurat trading. On eleven instances in the last fifteen years, both BSE and NSE indices closed high post muhurat trading.
  • The market remains close on the next day to celebrate Diwali

When there was no online trading, traders used to flock on the floor of BSE to carry out transactions during muhurat.

Muhurat Trading Timings 2020

Muhurat trading will happen on November 14, 2020. Below is the muhurat trading timeline for BSE.

Pre-open Muhurat Session: 6:00 pm – 6:08 pm

Muhurat Trading Session: 6:15 pm – 7:15 pm

Block Deal Session: 5:45 pm  – 6:00 pm

Call Auction: 6:20 pm – 7:05

Post-closing Muhurat Session: 7:25 pm 7:35 pm

The total duration of the muhurat session is 1 hour.

NSE Muhurat Trading Timing

Pre-open Muhurat Session: 6:00 pm – 6:08 pm

Muhurat Trading Session: 6:15 pm – 7:15 pm

Block Deal Session: 5:45 pm  – 6:00 pm

Call Auction: 6:20 pm – 7:05

Post-closing Muhurat Session: 7:25 pm 7:35 pm

The total duration of the muhurat session is 1 hour.

Muhurat Trading Settlement Timing

Stock settlement usually happens on the next trading day of samvat trading. Hence, it will happen in blocks on the next trading day, which is November 16. So, you can only sell the stocks after you get the delivery of stocks in your DEMAT, which will be November 17.

Conclusion

Muhurat trading is a big event for traders and brokers alike. If you are a new trader, it is an excellent time to start your investment journey. We suggest that you make a list of stocks, based on their performance, which you would like to buy during muhurat trading.