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Normal trading in the stock market remains closed on Diwali. Despite this, the market remains open for some time and people buy and sell shares. This special session is called 'Muhurat Trading'.
This business happening on festival days is not just buying and selling of shares. There is also an old tradition behind this to make a new beginning in an auspicious time, perform puja and welcome the new business year.
DR Choksi Finserv Managing Director Deven Choksi says that its story is related to the tradition of buying something new at an auspicious time.
According to him, on Diwali and Dhanteras people buy something new and bring it home. Some people buy books and some buy things made of metal.
People associated with the stock market linked this thinking with investment. They started their business and investment in the new year by buying shares at an auspicious time.
But when did this tradition start in the stock market? How did people do Muhurta trading in old times? And is it still just a ritual today or are the real deals happening during this time?
What used to happen earlier?
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In olden times, preparations for Diwali were not done only in homes and shops. Preparations for the festival were also made in the offices of stock market brokers.
According to a report in The Economic Times, brokers used to clean their offices on Dhanteras. Used to purchase chopri (accounting register) and organize pre-ordered deal books.
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After this, Lakshmi Puja and 'Chopra Puja', i.e. worship of the accounts, was done. This puja was performed with the hope of good business in the coming year.
The experiences of Priyakant Dalal, a former broker of Dalal & Broacha Securities, are also recorded in the report. According to this, he had been participating in such events since 1955.
At that time, many brokers had their offices near BSE (Bombay Stock Exchange). After the puja, it was easy to go to each other's offices and wish each other. On the day of Diwali, brokers used to gather in the big hall of BSE for Muhurta trading.
The experience of the broker explains the tradition of that period. However, his involvement in the events since 1955 is not proof of the commencement of formal Muhurat trading on the exchange in that year.
According to BSE, the tradition of Muhurta trading on Diwali has been going on since 1957.
In the BSE annual report for 2024–25, it is written that the tradition of Muhurat trading on Diwali started in 1957. This is mentioned on page 22 of the report.
Investor and trader Harsh Vora, in his article published on Tickertape on October 26, 2021, had also stated that it started in BSE in 1957.
Vora has linked it to the beginning of the new Hindu year. According to him, many investors buy some shares in this session to welcome the new year.
However, the annual report of BSE does not tell who started the first session, who made the first deal or the shares of which company were bought.
Start with a small deal in good time
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According to Deven Choksi, "The idea behind muhurat trading was that a person should make a new beginning in the auspicious time with which he is associated with that work."
For people associated with the stock market, this could have started by buying some shares or making a small deal.
Choksi tells that in old times people used to make small and symbolic deals on this day. The aim was not to earn huge profits, but to make a new beginning in the market on an auspicious day.
He also connects it with the beginning of the new year. Therefore, investing some money in the market on this day is considered auspicious.
Senior journalist Alok Joshi also connects Muhurta trading with the tradition of faith and worship of the people associated with the market.
He says that Lakshmi is considered the goddess of wealth and Lakshmi and Ganesha are idols for those who invest in the market.
According to him, normal businesses were closed on Diwali. In such a situation, the tradition of worshiping one's deity by doing some business at the time of Lakshmi Puja started.
However, buying shares during Muhurat is part of investors' belief and market tradition. There is no guarantee that the deal made at this time will turn into profit.
When orders for shares were written on slips
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Today, shares can be bought and sold in a few moments on mobile phone or computer. But investing in the early days of Muhurta trading was not so easy.
Deven Choksi tells that at that time orders for purchase and sale of shares were written on slips.
It was not easy for people to invest every day like today. Because of this, the importance of Muhurta trading was much greater.
People used to do some business on this special occasion and follow the tradition of auspicious beginning.
With time, the method of buying and selling shares changed and trading started through computers.
Electronic trading of shares in the National Stock Exchange i.e. NSE started on the evening of November 3, 1994 during Diwali Puja.
Therefore, it is important to understand the establishment of NSE and the commencement of trading of shares there separately.
At many places it is mentioned that Muhurat trading started in NSE in 1992, but according to NSE records, trading of shares there started in 1994.
Does muhurat trading always happen in the evening?
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Muhurat trading does not happen at the same time every year. BSE and NSE announce its date and time by issuing their respective circulars.
This year, on November 8, the main share trading time has been kept from 2:20 to 3:30 pm. Before this, the pre-open session will start at 2:05 pm.
Initial orders for buying and selling are taken in the pre-open session. During this time, the process of deciding what will be the starting price of the shares when the market opens.
In the year 2024, Muhurat trading took place on November 1 from 6 to 7 pm. Earlier, a pre-open session was held from 5:45 to 6 pm.
Whereas, on October 21, 2025, the main trading took place from 1:45 to 2:45 pm. Earlier, pre-open session was held from 1:30 to 1:45 pm.
It is clear from this that Muhurta trading does not always happen in the evening. Its timing may change every year.
Generally shares are bought and sold in the main session of Muhurta trading.
Apart from this, separate time can be kept for pre-open session, big deals and some special types of shares.
Are only shares purchased during this period?
Muhurta trading is not limited to shares only.
In the year 2025, a separate session of Muhurat trading was kept for futures and options trading along with shares.
Apart from this, a separate session was also held for commodity trading. In this, contracts related to the price of gold, silver and other commodities are bought and sold.
In the year 2025, the main trading session of all these ran from 1:45 to 2:45 pm.
Buying a contract related to a metal and buying shares of a company trading in that metal are two different types of investments.
Trading in contracts related to commodities like gold, silver, copper, aluminum and zinc takes place on NSE. Muhurat trading also takes place on Multi Commodity Exchange i.e. MCX on the day of Diwali.
Even in shares, the method of trading is not the same for every company. The fixed rules of the stock market are applicable to the shares which are available for trading at the time of Muhurta trading.
When film stars rang the BSE bell
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Film personalities have also been invited as special guests in the Muhurta trading of BSE.
In 2015, actress Isha Koppikar started Muhurta trading by ringing the bell with BSE officials.
In the year 2019, Mouni Roy and Rajkumar Rao became the special guests of this function. According to BSE Institute records, Lakshmi
After the puja, Mouni Roy started the Muhurta trading of that year by ringing the bell.
At the same time, Rajkumar Rao also participated in the ceremony of beginning of the new Samvat along with BSE officials and other guests.
After this, in the year 2022, Ajay Devgan along with his team and senior officials of BSE started Diwali Muhurta trading by ringing the bell. This is also confirmed in the annual report of BSE for 2022-23.
This bell signals the beginning of that day's special trading session. After this, buying and selling of shares starts at the scheduled time.
Muhurat trading deal is not just a ritual
In olden times, small and symbolic deals were done during Muhurat trading. But the deal made to fulfill tradition is also real.
In Muhurta trading, after buying or selling shares, the deal is settled as per the fixed market rules. That is, payment for shares and transactions have to be completed in the same way as it happens on a normal business day.
Market expert Harsh Vora writes in his article that the basic rules of investment and business do not change during Muhurta trading.
A festival day does not change the business condition of any company nor does it automatically become a reason to buy any share.
Therefore, while investing in Muhurta trading, the same caution should be taken as is taken on any normal day in the market.
Deven Choksi says that from worshiping ledgers to buying shares on mobile and computer, the way of doing business in the market has completely changed.
Earlier traders used to gather together in the hall of BSE. Orders were written on slips and after the puja, the new business year was started with small deals.
Now investors can buy and sell shares from phone or computer. The presence of youth and small investors in the market has also increased.
The way of doing business has changed, but the idea of auspicious beginning behind Muhurta trading is still the same. This is the reason why this short trading session of Diwali still remains special for many investors.
Published by Collective Newsroom for the BBC.
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