Introduction
It’s that time of year again, Diwali’s glow is lighting up our streets. We can smell the air filled with the aroma of fresh sweets and fireworks. Today, I’ll be juggling samosas in one hand and my trading app in the other.
I know, there are guys who’s spent more Diwalis staring at charts than lighting diyas (I’m not judging). In this Diwali aura, I thought it’d be fun to dive into the story behind one of ritual of Muhurat Trading.
I think, it is magical hour our tradition crashes into tickers (stock investing). On this day, I think, everyone who practice Muhurat trading, hopes that Goddess Lakshmi hits “buy” herself on their portfolio.
If you’ve ever wondered why grown adults in suits (or kurtas) gets involved in that one-hour market window on Diwali, I’ll share this story with you.
The Roots
May I ask you to picturize a scene like this. Centuries ago, India’s trading communities (mainly Gujarati and Marwari) are wrapping up their Diwali pujas.
The ledger books get a holy makeover. Chopda Pujan, where they worship their accounts with flowers, coins, and a dash of turmeric. It’s done to kick off the Vikram Samvat (Hindu financial new year) on a prosperous note.
Diwali is not just about the fireworks, it is also about the fiscal renewal of these two communities.
On this day, traders would scribble their first entries into their new account books (chopda). They are doing this with a belief that starting the books during this “muhurat” (auspicious hour) would summon wealth for them.
In our mythology, some say it all traces back to King Vikramaditya. He was a legendary ruler from Ujjain who supposedly kicked off the Vikram Samvat calendar in 57 BCE.
Legend has it he ordered Diwali trades to bless his kingdom with bounty.
What we do know is that by medieval times, our bazaars (traders) used to start believing that if new deals are sealed, old debts gets settled on Diwali Puja, are all happening under Lakshmi’s watchful eye.
BSE (Bombay Stock Exchange)
In 20th century, India’s stock market also evolved. It was no longer handled by a small group of traders in Bombay’s distant street.
The BSE was founded in 1875 under a banyan tree (a humble beginning). In 1957, BSE flipped the script on tradition by formalizing Muhurat Trading as an official one-hour session.
No more ad-hoc ledger scribbles. After Mahurat Trading got a formal recognition, now the stock market used to open properly for that one hour evening trading. It is timed to match the Muhurat of Laxmi Puja. In old days, brokers used to execute trades on this dat in traditional dhotis.
In those days, trading was pure theater (open outcry system). There used to be no screens, people used to shout to announce buy and sell orders.
Brokers would perform Lakshmi Puja at the exchange, place a symbolic coin on their books, and dive into token trades.
It wasn’t about volume; it was about bringing the Diwali vibe into the stock market. A quick buy of a blue-chip stock for the kids, maybe a small sell to book a “profit” (even if it was pennies), all to welcome the new year.
BSE timed it for the evening, post-puja. The Muhurat Tradinng is usually done around 6-7 PM. It was an attempt to blend the sacredness of the day with speculation.
This tradition of Muhurat Trading caught on like wildfire among Gujaratis and Marwaris. They saw it as their market Diwali bonus.
NSE Joining The Party
In 1990s India’s opened up its economy (liberalization) to the world.
During this time, the National Stock Exchange (NSE) came into existence (1992). This exchange was more sleek (than BSE) with electronic trading facility. In those times, its features were far more sophisticated than what was offered by BSE.
NSE didn’t just copy-paste from BSE; they turbocharged Muhurat Trading. They started their own session in 1992 to mark the Samvat start. Hence, suddenly, terminals started buzzing nationwide, not just in Mumbai.
What was once a clubby affair for Dalal Street insiders went viral. Now, even retail investors from Rajasthan to Kerala could join via phone lines (dial-up service).
This era evolved the ritual of Muhurat Trading big time.
Turnover spiked as online platforms crept in by the late ’90s, turning Muhurat from a symbolic celebration into a mini-market event.
Brokers started doling out “Diwali picks”, hot tips on stocks like Reliance or Infosys.
The 21st Century Makeover
Today, Muhurat Trading has become even bigger. We’ve got pre-open sessions (that 15-minute warm-up where prices settle before formal traders start). We now have a full-fledged equity, F&O, commodities, and currency trades, all crammed into those 60 minutes Muhurat Trading window.
Do you know what is the turnover in Savat Trading? It has ballooned from a few lakhs in the 1950’s to lakhs of crores today. There is a data that NSE hit Rs. 50,000 crore+ in 2023 alone.
Yet, it is true that our stock exchanges (both NSE and BSE) has adapted smartly.
In 2025, for the first time since 1957, the evening slot for Muhurat Trading has been switched to the afternoon slot. (from 1:45-2:45 PM on October 21). Earlier, The stock market Diwali muhurat trading used to take place in the evening slot of 6:00 PM to 7:00 PM.
Comparison Table: Diwali Muhurat Trading (Earlier vs 2025)
| Feature | Before (e.g., 2024) | In 2025 |
| Event | Diwali Muhurat Trading Session | Diwali Muhurat Trading Session |
| Typical Trading Slot | Evening session. (e.g., 6:00 PM to 7:00 PM IST in 2024) | Afternoon session. (e.g., 1:45 PM to 2:45 PM IST in 2025) |
| Duration | One-hour special trading window. | One-hour special trading window. |
| Segments Available | All segments (Equities, F&O, Currencies, Commodities, etc.) are available for trading. | All segments (Equities, F&O, Currencies, Commodities, etc.) are available for trading. |
| Settlement | Normal settlement obligations. | Normal settlement obligations. |
What is the reason for the shifting of the timing? I’m not sure, but I think the reason is for shifting the Muhurat Trading session to the afternoon, instead of its usual evening slot, is generally related to the auspicious timing (Muhurat) for the Lakshmi Puja rituals in that particular year.
Has The Diwali Muhurat Trading Been Profitable For Traders?
Does this auspicious hour actually pay off? The
Over the last decade (2014-2023), Sensex and Nifty posted positive Muhurat-day returns in 8 out of 10 sessions, averaging 0.5-1% on the day itself.
What has been the performance between Muhurat-to-Muhurat? A solid 11-13% average for benchmarks, with midcaps and smallcaps stealing the show (up 25-80% in strong years like 2021).
Even in crashes, like 2008’s global meltdown, the index rallied 5.86% that day.
Festive cheer fuels FOMO buying. Low volumes amplify ups.
Sectors like auto, realty, and consumer goods generaly sparkle, riding Diwali demand.
Conclusion
As you gear up for this year’s Muhurat , I would like you to be reminded why this tradition endures.
It’s not just about the returns; it’s the ritual of renewal.
In a world of endless earnings calls and amind Tump/Elon tweets, Muhurat Trading is our pause button. A hour to honor the past while betting on the future.
Whether you’re a pro F&O or a newbie thinking of grabbing one Nestle, Britannia, or ITC share for yourself, it’s a reminder: Wealth isn’t just won; it’s worshipped in India.
So, light those diyas, say a quick prayer to the Goddess Lakshmi, and trade with heart.
Wish you all a very Happy Diwali.
