When and why to invest for long-term gains


Diwali is fast approaching and will be celebrated on Thursday, November 4 of this year. Like every year, the stock market would hold Muhurat Trading 2021 for one hour, which is a symbolic trading session organized by the stock exchanges to mark the auspicious festival. The fifty-year-old tradition for stocks, equity M&O, foreign exchange M&O and commodities for Diwali 2021 is expected to be held between 6:15 p.m. and 7 p.m. to 3 p.m. on November 4, Thursday. Prior to the one hour session, a 5:45 to 6:00 p.m. window has been reserved for the bouldering session. It will be followed by the pre-open session between 6:00 p.m. and 6:08 p.m.

The usual hour-long Muhurat Trading session is considered auspicious by many and marks the beginning of Samvat, i.e. the accounting year in the Hindu religion. The exchange remains closed for the rest of the day and only opens on this occasion for one hour. Here is everything you need to know about Muhurat Trading 2021.

What is Muhurat Trading?

As mentioned earlier, Muhurat Trading is a usual stock trade done for one hour during Diwali and is considered auspicious among many others. Over the years Muhurat Trading has become more of a tradition, mixed with nuances of religion and culture and is an interesting event. According to Hindu tradition, Diwali marks this year Samvat 2078, that is, the new financial year. Stock market traders do special stock trades in just an hour, which is why it is called Muhurat Trading. Muhurat Trading 2021 is scheduled to take place between 6:15 p.m. and 7:15 p.m.

Importance of Muhurat trade

Muhurat Trading was first introduced by the Bombay Stock Exchange (BSE) when it set aside an hour on Diwali for stock trading in 1957. The National Stock Exchange (NSE) followed this decision and authorized trading for one hour on Diwali Day in 1992. Since then, traders believe that any transaction made during Muhurat Trading brings fruitful results as well as prosperity. Meanwhile, it’s a way the trading community prays to Goddess Laxmi, the Hindu deity of wealth.

How did stocks go while trading Muhurat?

The special Muhurat Trading session took place on November 14th of last year. Meanwhile, the trading session saw the Bombay Stock Exchange or BSE Sensex close at 43,638, citing a rise of 195 points. On the other hand, the National Stocl Exchange or the NSE closed at 12,771, citing a rise of 51 points during the Muhurat Trading session last year. If history is to be trusted, stock movement has been less in this one hour session over the year, while trading volume has traditionally also remained weak. Despite this, Muhurat Trading has always experienced a rise in stock market indices over the years. So this year too, investors expect the markets to rise like every two years during Muhurat Trading 2021.

What the experts say

According to experts, since Muhurat 2021 or Samvat 2078 will mark the start of a new year, this will be a good time to analyze asset allocation and calculate what works and what does not.

“Whether you invest during Muhurat trading or on normal days, an investor should check due diligence before investing. Once the company has obtained the due diligence, an investor should look at the financial data of the company and what are the aspects that will drive the growth and return ratio, ”Jaikishan Parmar, senior equity analyst, said earlier. at Angel Broking.

Experts also suggest that new investors can make token investments to mark the pious occasion to get started. However, they caution against the trading strategy as the space for reserving profits is also limited during Muhurat Trading.

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