On Diwali evening, while most offices are dark, India’s stock exchanges light up for one ceremonial hour: Muhurat trading — a special session held during an auspicious window on Lakshmi Puja day, continuing a tradition from the era when brokers opened new ledgers and made token trades to bless the year.
What Actually Happens
NSE and BSE announce a special evening session for Diwali (this year falling on Sunday, November 8 — exact timings are notified by the exchanges closer to the date; always check the official circulars). Trades are real — settlement obligations and all — but the spirit is symbolic: many investors buy a token quantity of a stock or add to a long-term holding as the year’s first “entry” in the new Samvat books.
For First-Timers: The Sensible Way In
1. The ritual needs a demat account — opening one takes a day or two with any registered broker; start now, not Diwali afternoon.
2. Token, not trading. A symbolic purchase you intend to hold suits the occasion; leveraged punts and intraday heroics in a thin, sentimental session do not. Muhurat-session liquidity is lighter and moves can be noisier than a regular day.
3. The habit beats the hour. If the evening inspires you, the genuinely auspicious act is starting a monthly SIP that outlives the festival — one symbolic share on Diwali plus twelve automated investments a year is the tradition, modernised.
4. Prerequisites first. Emergency fund funded and no 40% card debt revolving — investing while expensive debt compounds against you is rowing upstream.
Why the Tradition Endures
Muhurat trading is Chopda Pujan for the demat age: a deliberate first entry, made with intention, in the presence of family. The returns of one hour were never the point — the orientation is: wealth as something you begin, each year, on purpose.
Important: This article is educational information only and NOT investment advice or a recommendation to buy or sell any security. Markets carry risk; session timings and rules are set by the exchanges — verify official NSE/BSE circulars. Consult a SEBI-registered investment adviser for personal guidance. FundsTiger is an independent digital lending marketplace operated by Gatimaan Finance Advisors and does not offer broking or advisory services.