Diwali marks the beginning of a new year and therefore stock markets celebrate the occasion with an hour of Muharat trading in the evening. Investors and broking houses believe that trading in that hour brings wealth and prosperity throughout the year. The traders hold pujas to worship Lakshmi, Goddess of Prosperity and Wealth. The broking offices are lit with diyas and lamps to worship Goddess Lakshmi.
This is a century long tradition that continues even to this day. This year Muharat trading will happen on Thursday, 19 October from 6.30 Pm to 7.30 pm. Traders will buy and sell stocks on behalf of customers to mark the beginning of the year.
As the day is auspicious, the market generally ends on a positive note that day. Hence, the traders expect both Nifty and BSE Sensex to close on a positive note considering the already bullish trend in the market.
What is Muharat? It is an auspicious hour when planets align themselves in such a work that that the work done during this time becomes fruitful and without the influences of evil forces. Trades made on this day are more for traditional, religious and sentimental reasons.
Commodity exchanges also have Mahurat trading for investors. For businessmen, the new financial year begins with Diwali as they perform the ‘Chopda or Sharda Puja’ where old account books or ledgers are closed and new ones open marking the start of a promising new business year.