InvestorQ : What is Muhurat trading & why it's happening on the Diwali day?
Purvesh made post

What is Muhurat trading & why it's happening on the Diwali day?

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Anjana Aiyar answered.
11 months ago

Muhurat trading is a small one-hour window that is provided on the Diwali day in the evening. The day marks the beginning of the new Samvat Year. The Samvat year as per the Indian calendar is 57 years ahead of the English calendar. The purpose of the Muhurat trading window is to start off the year on an auspicious note. On this day, dealing rooms conduct the traditional Pooja in the dealing room before taking orders. Normally, as a matter of practice, sell orders are discouraged in Muhurat trading day and clients are encouraged to only put buy orders, even if it be in small quantities.

What is the significance of Muhurat trading? Actually, it is a harbinger of prosperity for the investors and for the brokers in terms of business. Dealing rooms and broker offices take on an ethnic look with rangoli patterns and lighting diyas. This Muhurat trading is to propitiate Goddess Lakshmi, and she holds special significance for the Gujarati and Marwari trading community. Traders on Dalal Street welcome the New Year on a positive note with Muhurat trading. Normally, investors place token orders and buy stocks for their children, which are held for the long term and sometimes never sold. Intraday traders and short term traders book their intra-day profits, however small they may be. A coin - which signifies wealth - is placed on the account books before the actual Pooja. Since Muhurat trading also marks the new Samvat year, it is marked by Chopdi Poojan (worshipping the books of accounts). Markets return to normal course from the next day.