For an hour every Diwali, stock market trading activity picks up rapidly. It is also a time when the usual ‘dry’ surroundings of stock brokerage offices have a festive air about them. After all, it is the day of Muhurat trading, an auspicious occasion when the investing community prays to the goddess Lakshmi, the deity of wealth and prosperity and celebrates the beginning of ‘Samvat’ or New Year.
Muhurat trading is a ritual that has been ongoing since trading started on BSE in 1957 and on NSE in 1992. It is mostly held during a non-scheduled trading hour and is announced by the stock market to notify traders and investors of the non-scheduled trading hour. This year, the pre-opening session will be from 6:00 to 6:08 pm while the trading will be held from 6:15 to 7:15 pm on Oct’27th 2019.
It is believed that Muhurat trading brings prosperity and wealth. This particular auspicious time is believed to ward off the evil of losses, and as the old account books are closed to open new ones, the people of Dalal Street want to steer clear of these spirits. Family members of stockbrokers join in the festivities in the office, and it is a moment of great excitement when the first token order, usually a buy is placed.
It is said that newbies who want to begin their investment journey should ideally start on the Muhurat hour. Prices are less volatile, and people are mostly buying, so there are only a few people looking to make a killing. Moreover, for new investors and stock traders, observing the muhurat session is important as the price trends give a good account of what’s happening nationally and globally.
Essentially, the day is an occasion of celebration and joyous fervor for the stockbroking community. Investors may buy stocks for children, which are sometimes held for a long long time. As it is said, well begun is half done, and cracking off one’s stockbroking journey on this day guarantees you the divine Mother’s blessings. However, not sentiment, but sanity and acute observation, as well as a little bit of luck, is needed to ace the stockbroking world, and the Muhurat day is nothing but a good start.
(Views expressed above are the personal opinion of Mr. Prabhakar Tiwari, CMO, Angel Broking Ltd.)