As Diwali approaches, many are uncertain whether the festival falls on October 20 or 21 this year. As for stock markets, investors would also like to know definitive dates of the days when trading will not happen. They have a definitive date to note: the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will be closed on Tuesday, October 21, for Diwali Lakshmi Puja, and again on Wednesday, October 22, for Balipratipada.However, on October 21, a special trading activity will occur which is the traditional Muhurat Trading session, a symbolic ritual lasting one hour, from 1:45 PM to 2:45 PM. This session will allow trading across various segments, including equities, futures and options, currency and commodity derivatives, and securities lending and borrowing (SLB), with modifications permitted until 2:55 PM.
The dilemma on the festival dates
The confusion arises because the lunar calendar’s Amavasya tithi, or new moon phase, technically extends into October 21. However, the auspicious time for Lakshmi Puja is on the evening of October 20, leading most households to celebrate then. The following day marks the start of the new Hindu Samvat year, celebrated with the Muhurat Trading session on Dalal Street.This year, the Muhurat session will occur in the afternoon on October 21, a departure from recent years when it was held in the evening. Additionally, markets are closed on October 18 for Dhanteras and October 19 for the regular weekend schedule.
Muhurat Trading: A blend of tradition and finance
Muhurat Trading, meaning “auspicious hour,” is more than just a market event. It symbolizes the beginning of Samvat 2082, the new Hindu financial year. For investors, it represents optimism and a prayer for prosperity rather than a focus on profits.This tradition has persisted for decades, often bringing positive returns. The Sensex has closed higher in 14 of the past 18 Muhurat sessions. Even during the 2008 global financial crisis, the index rose by 5.86% during the session. In 2024, it gained 335 points, or 0.42%, continuing the trend of festive cheer.Analysts, quoted by ET, point out that trading volumes are typically low during this one-hour window, leading to potential volatility. However, the session is not seen as a typical trading day but rather a symbolic reset, where traders, families, and brokers come together to mark a hopeful start to the new year.
Remaining stock market holidays for the year
After October 22, only two more holidays remain for stock markets part from the regular Saturdays and Sundays. Markets will be shut on November 5 for Prakash Gurpurb Sri Guru Nanak Dev and December 25 for Christmas