The second half of the Indian calendar year is filled with festivities and the stock markets are not left untouched by this festive atmosphere. The NSE and BSE list out the number of holidays during the calendar year at the onset of each year but on the occasion of Diwali, even though it is a holiday the stock markets are open for an hour. This is the Muhurat Trading hour which has been a tradition for the Indian stock markets for decades.
The term ‘Muhurat’ refers to an auspicious time in our Indian culture based on which important rituals and events are conducted. On the occasion of Diwali, Indians have a Lakshmi Pujan at their homes and places of work. Some communities like the Gujarati and the Marwari Communities also have rituals like the Chopda Pujan (worship of Books of Accounts) as part of their Diwali Celebrations. The Indian stock markets also honour these special rituals and have Muhurat Trading to celebrate Diwali. This Muhurat Trading Hour is the special trading hour on NSE and BSE where the investors and traders carry out token transactions to mark the beginning of the new Hindu calendar year or the new Samvat. The tradition of Muhurat Trading began on BSE as early as 1957 and on NSE in 1992. This tradition is, therefore, decades long and is eagerly awaited by the entire stock market community. The idea of trading during this special hour is to seek the blessings of Goddess Lakshmi and hope to have a profitable investment or trading portfolio. Like any normal trading session, investing and trading are open in various segments like Capital Markets, Futures and options, Commodity Markets, and Currency Derivatives.
The Muhurat Trading Hour in 2022 is scheduled to be on 24th October 2022 and the timings for the same on NSE and BSE are declared by the stock exchanges. The details of the same are given below.
The Muhurat Trading is available for all the segments for investing and trading purposes on the NSE and the session timings for these segments are detailed below.
The timings for Muhurat Trading in 2022 on NSE for Capital Markets are,
| Category | Start Time | End time |
|---|---|---|
| Block Deal Session | 5.45 pm | 6 pm |
| Pre-Open Session | 6 pm | 6.08 pm |
| Normal Market or Trading Session | 6.15 pm | 7.15 pm |
| Call Auction Illiquid Session | 6.20 pm | 7.05 pm |
| Closing Session | 7.25 pm | 7.35 pm |
| Trade Modification cut-off time | 6.15 pm | 7.45 pm |
The timings for Muhurat Trading in 2022 on NSE for Futures and Options are
| Category | Session Time |
|---|---|
| Normal Market Open Timing | 6.15 pm |
| Normal Market Close Timing | 7.15 pm |
| Trade Modification End Time | 7.25 pm |
The timings for Muhurat Trading in 2022 on NSE for Commodity markets are
| Category | Session Time |
|---|---|
| Normal Market Open Timing | 6.15 pm |
| Normal Market Close Timing | 7.15 pm |
| Set up cut off time for Position Limit / Collateral value | 7.25 pm |
| Trade Modification End Time | 7.25 pm |
The timings for Muhurat Trading in 2022 on NSE for Currency Derivatives are
| Category | Session Time |
|---|---|
| Normal Market Open Timing | 6.15 pm |
| Normal Market Close Timing | 7.15 pm |
| Trade Modification End Time | 7.25 pm |
Similar to NSE, the Muhurat Trading hour on BSE can be used to trade and invest in various segments of stock markets. The timings for the same on 24th October 2022 are detailed below.
The timings for Muhurat Trading on BSE for Equity Segment are
| Session | Start Time | End time |
|---|---|---|
| Log-In | 5.15 pm | 5.45 pm |
| First Block Deal Window | 5.45 pm | 6 pm |
| Pre-open session | ||
| Order Entry Period | 6 pm | 6.08 pm |
| Matching Period | 6.08 pm | 6.15 pm |
| Continuous Trading Session | 6.15 pm | 7.15 pm |
| Special Pre-Open for IPO and Listed Scrips | ||
| Order Entry Period | 6 pm | 6.18 pm |
| Matching Period | 6.18 pm | 6.30 pm |
| Continuous Trading Session for SPOS Scrips | 6.30 pm | 7.15 pm |
| Periodic Call Action (1 Session) | ||
| Order Entry Period | 6.20 pm | 7.05 pm |
| Matching Period | 7.05 pm | 7.15 pm |
| Closing Period | 7.15 pm | 7.25 pm |
| Post Closing session | 7.25 pm | 7.35 pm |
| Trade Modification | - | 7.45 pm |
| Trade Annulment Request | - | 7.45 pm |
The Muhurat Trading session timings for the Equity Derivative segment are,
| Category | Start Time | End Time |
|---|---|---|
| Log-In | 5.15 pm | 6.15 pm |
| Continuous Trading | 6.15 pm | 7.15 pm |
| Trade Modification | - | 7.25 pm |
| Trade Annulment Request | - | 7.30 pm |
The Muhurat Trading session timings for the Commodity Market segment are,
| Category | Start Time | End Time |
|---|---|---|
| Log-In | 5.15 pm | 6.15 pm |
| Continuous Trading | 6.15 pm | 7.15 pm |
| Trade Modification | - | 7.25 pm |
The Muhurat Trading session timings for the Currency Derivative segment are,
| Category | Start Time | End Time |
|---|---|---|
| Log-In | 5.15 pm | 6.15 pm |
| Continuous Trading (Currency Derivative and Interest Rate Derivatives) | 6.15 pm | 7.15 pm |
| Cross Currency Derivatives | 6.15 pm | 7.15 pm |
| Trade Modification (Currency Derivative and Interest Rate Derivatives) | - | 7.25 pm |
| Trade Modification (Cross Currency Derivatives) | - | 7.25 pm |
| Trade Annulment Request | - | 7.30 pm |
The Muhurat Trading session is limited to an hour and therefore, the stock markets are quite volatile during this season. Also, being in the festive mode, it is generally observed that the markets are on the bullish side. This warrants extra caution for the novice as well as seasoned investors and they should take relatively safer positions. Some of the key points to remember during the Muhurat Trading Hour are highlighted below.
Muhurat Trading holds a special place in the Indian stock markets and is a yearly ritual that is not missed in decades. Traders and investors execute token transactions with the hope to seek the blessings of Goddess Lakshmi and have a profitable portfolio all year round. So what do you think of this ritual of the Indian Stock Markets, isn't it exciting! Do let us know what are your plans for Muhurat Trading and if you have any stocks shortlisted. As the Muhurat Trading Hour is in the evening and is different from the usual trading session (9 am-3.30 pm), traders will have to change the settings for the charting softwares Amibroker, Ninja Trader 7, Ninja Trader 8, AdvancedGet, MetaStock, and Motivewave. Users can change their settings for the desired software on Truedata through this link Diwali Muhurat Trading Timing. Wishing all the readers Happy Diwali and a Prosperous New Year!
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