What is 'Muhurat Trading' and why it is performed to usher in 'Samvat'

Mumbai: Every Diwali, although trading remains closed for the entire day, the stock exchanges open for one hour, this year from from 6.30 pm to 7.30 pm, for what is known as ‘Muhurat Trading’.

‘Muhurat Trading’ is the stock trading held during evening hour on Diwali. ‘Muhurat’ in Indian lexicon means ‘auspicious time’, which is when stock brokers indulge in token buying to mark the occasion. It is announced by the stock market exchanges notifying traders and investors of the non-scheduled trading hour.

Muhurat Trading derives its legacy from the age-old tradition of Indian traders turning a new leaf to a new financial year on the occasion of Diwali. It also involved worshipping Lord Ganesha and Goddess Lakshmi to ensue wealth and prosperity.

Stock brokers' offices adorn an ethnic look with rangolis, lights, decorations to welcome the gods.

The schedule of the muhurat trading is announced by the stock exchange and the BSE Sensex ends higher at the ending of the trading hour. It is the traders way of welcoming the New year on Dalal Steet.

Investors often take token orders and buy stocks for their children, which are held for the long term and sometimes never sold.

According to Moneylife, the BSE Sensex has closed at a gain of about 1 per cent or more on 13 out of the last 15 ‘muhurat’ trading sessions.

The S&P BSE Sensex rose from near 28,000 to 32,000 in Samvat 2073. The Nifty which rose to a fresh record high above 10,200.