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What Does History Say About Muhurat Trading?

09 August 20223 mins read by Angel One
What Does History Say About Muhurat Trading?
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Following the Hindu tradition of opening a new ledger on the day of Diwali, Indian stock exchanges arrange muhurat trading. Muhurat is the Hindi word for the special moment of the day, determined by the planetary positions, which is considered auspicious to buy or sell assets. For ages, some Indian communities organise special Puja to worship Goddess Laxmi on Diwali to seek her blessings before initiating a new accounting year. The tradition is still followed in the modern days, and traders gather on the floor of the stock exchange to buy stocks during the auspicious trading hour or muhurat. 

Muhurat Trading Origin

The practice of muhurat trading is almost fifty years old. It started in 1957 in the Bombay Stock Exchange. At that time, online trading was unheard of. So, the traders used to gather at BSE to trade during the special hour of muhurat trading. Although the time has changed, the excitement surrounding muhurat trading remained intact. Let us now see what does history say about muhurat trading. 

Why look at historical data?

In studying the market, historical data is critical to anticipate future trend patterns. Chartists spend substantial time in studying historical data to gain insight on how the market’s past behaviour relates to the current context. So, we will review the historical data associated with muhurat trading to understand what to expect from the market on that day.

 Studying Historical Data Is Especially Important For 2020

2020 is an unprecedented year. We are currently going through a pandemic situation that hasn’t happened in the last hundred years. Considering this, muhurat trading is going to be extremely significant. 

However, historical data shows that during the past fifteen muhurat tradings, the market remained positively biased on eleven occasions; gained and closed high at the end of the one-hour session.   

Studying muhurat trading historical data from the last year shows that in 2019, SENSEX nearly gained 200 points, and NIFTY soared to 11,600 points. 

Facts That Will Impact The Market In 2020

Some global development, along with domestic impetus, will govern the sentiment of the investors in the domestic market. However, the good part is most of this news are positive. 

  • Undoubtedly, the recent result of the US presidential election will keep the market up. The domestic indices remained positive following Wall Street after the result was announced. Market experts predict that Joe Biden in the office will be beneficial for Indian corporate 
  • The US drug manufacturing company recently announced COVID-19 vaccine with an efficacy level of 90 percent. However, there is still time that the vaccine comes to the market, but it will impact the sentiment of the investors
  • In the quarter two financial reports, thirty-five out of NIFTY 50 companies have reported profit even amid lean economic activities, which will also sway investors’mood


Muhurat trading 2020 will happen on November 14, between 6:15 and 7:15 pm. If you are planning to participate, include a study of Diwali muhurat trading history in your preparation schedule so that you remain confident about trading.

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