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Facts About Muhurat Trading

09 August 20224 mins read by Angel One
Facts About Muhurat Trading
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Muhurat trading is a special occasion for traders and investors in India. Indeed, if you are an investor, you will also want to take part in it. But if you are wondering how to take advantage of muhurat trading, then you have come to the right place. Worry not! We will tell you how to prepare before the muhurat trading.

In Hindi, muhurat means auspicious time. Though the exchanges remain close for Diwali, the market opens for a special session or muhurat trading in the evening.  It is a big event for traders and brokers alike as they believe that trades carried out during this one hour will bring good luck for the next year.

It’s an excellent time to plan your investment for the upcoming year. So, where to begin? Let’s take a look at the muhurat trading facts.

The Time Is Announced In Advance

BSE started the practice of muhurat trading, and since then, every Indian bourse organizes special trading on Diwali.

In 2020, muhurat trading will happen on November 14. The particular trading window will open at 6:15 pm and close at 7:15 pm.

A Brief History Of Muhurat Trading

Before you participate in this year’s muhurat trading, here are some facts to brush up on your history.

Muhurat, the Hindi word for the moment, denotes special and auspicious times of the day, which the Hindus believe are suitable for a new beginning. Since Diwali signifies the beginning of the Hindu accounting year, traders engage in buying and selling securities to mark its onset. They perform traditional worshipping of accounting books and money chests before the trading session starts. It is a century-old tradition among the Gujarati and Marwaris, the two prominent business communities. The practice of muhurat trading began in 1957 in BSE.

Things To Know Before Muhurat Trading

Muhurat trading is going to be exciting this year. Several things have happened in 2020, which are unusual. Currently, we are under lockdown due to a global pandemic outbreak. COVID-19 condition has put a lot of stress on the economy, and the market remained volatile since the lockdown was announced. It is good news that the festive season is around the corner. Experts hope that it will help the economy turn around and may even initiate the V-shape recovery process that economists suggest.

If you are planning to participate in muhurat trading in 2020, be mindful of the factors that will impact the market.

The pandemic: Ofcourse, COVID-19 is still raging across the globe. Without any progress in vaccine development, we can expect it to last for some time more. But as we try to adjust to new-normal in our daily lives, the market is gradually coming out of schok as well.

Oil price: For the first time in the history of crude oil, the price hit below zero in the global market. This will leave a severe impact on the economy and market as a whole.

Stimulus Plan: The Indian government announced massive Rs 20 trillion stimulus package to aim for economic recovery. The government will issue the package in phases, targeting different sectors to stimulate recovery and growth.

Gold Price: As the market tumbled, the gold price skyrocketed. For the first time in the retail market, the gold price touched the mark of Rs 50000 for 10 grams.


Despite all the grim news that plagued 2020 so far, we are ready to welcome the new year that will begin on Diwali with wholesome positivity. The market is gearing up for the big day. The fact that the majority of NIFTY firms clocked profit in the quarter ended in September will keep the hopes high.

Usually, the market remains bullish during muhurat trading. We hope in 2020 also we will see a lot of action on the day of muhurat trading.

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