The Importance of Muhurat Trading
It is considered auspicious to trade during muhurat trading, a special session of the stock market held on Diwali
Diwali or Deepawali is one of the most important events in the Hindu calendar. It is especially important for businessmen since it is considered the beginning of the New Year (Samvat), and is dedicated to Lakshmi, the goddess of wealth and prosperity. Conducting some business activity on this day is considered auspicious and sets the tenor for the year ahead.
For the trading community, Diwali is a time when old account books are closed and new books opened. On this day, traders worship their new account books in a ceremony called `Chopda Poojan’.
A Gujarati tradition
The tradition of ‘Muhurat’ (auspicious time) trading on the stock exchange was started by the Gujarati community, which was a pioneer of stock trading in the country and continues to dominate it today.
Muhurat trading is held for an hour on Diwali at a time specified by the stock exchanges, usually in the evening. For 2018, Muhurat trading on the NSE and BSE will be held on 7 November between 5pm and 6:40 pm. The offices of the stockbrokers are colourfully decorated, and they and their families hold pujas to pray for a prosperous future. While books used to be worshipped in an earlier age, now the honours are done to the trading terminals. A symbolic `buy’ order is also placed.
An optimistic note
Investors tend to end the trading on an optimistic note to ensure an auspicious start for the year ahead. Many consider this a good time to buy shares for their children, which are held for the long term. Considering the upbeat mood, many day traders also use the opportunity to rake in some profits.
Though the functioning of the stock market has changed by leaps and bounds in the past few decades, muhurat trading is still significant for many investors because of its religious and traditional aspect. It is also considered a good time for newbies to enter the market as it is believed to be an auspicious time, particularly, if you want to have a lifetime of success and prosperity.
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