Glossary term

Muhurat Trading

Muhurat Trading is a short, ceremonial trading session that the NSE and BSE conduct on the evening of Diwali (Laxmi Pujan), considered an auspicious time in Hindu tradition to begin the new Samvat year. It usually runs for about one hour and includes the normal market segments, such as the equity cash market and the equity and currency derivatives (F&O) segments. The exchanges announce the exact date and timings each year through a circular, since Diwali falls on a different day annually.

Also called: Muhurat trading session, Muhurat session, Diwali Muhurat trading, Muhurat trading hours, Muhurat trading timings, Mahurat trading

How it is read

It is generally treated as a symbolic, tradition-driven session rather than a regular full trading day. The session follows standard exchange mechanics during its window: a pre-open phase, continuous trading, and a closing period, with settlement handled per the exchange schedule. Many participants regard placing a small token trade during this hour as a customary gesture for the new Samvat year.

What it does not tell you

Muhurat Trading does not, on its own, indicate market direction, value, or what any instrument will do afterward. The one-hour window is far shorter than a normal session, so volumes, depth, and price moves during it are not directly comparable to a full trading day and should not be read as a representative signal. The session's date and exact timings are not fixed in advance; they are confirmed only by the year's NSE/BSE circular, so a prior year's schedule is not a reliable guide, and an otherwise-closed Diwali holiday does not imply the cash or F&O segments are open outside this announced window.

Reference. NSE Trading Holidays circular (annual Muhurat Trading timings notification).

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