Muhurat Trading 2025: Cultural Significance and Historical Returns

Muhurat Trading represents a unique fusion of financial markets and cultural traditions in India’s investment landscape. This special one-hour session occurs on Diwali evening, marking the commencement of the Hindu New Year (Samvat).

The Bombay Stock Exchange (BSE) initiated this tradition in 1957, with the National Stock Exchange joining in 1992. The session operates as a fully functional trading period despite its ceremonial nature and lower volumes.

Historical Origins and Operational Framework

Muhurat Trading began with BSE in 1957 and NSE joined in 1992, establishing a decades-old tradition in Indian markets. The term “Muhurat” refers to an auspicious time determined by planetary alignments, believed to bring positive outcomes.

This session is fully operational, with trades settling on regular days, but volumes are lower, dominated by retail investors. All market segments, including equity, derivatives, and commodities remain open during this special trading window.

Cultural Significance and Rituals

Rooted in Hindu traditions, Muhurat Trading coincides with Lakshmi Puja, where families worship the goddess of wealth. Investors often place token trades or buy shares as offerings, symbolising gratitude and hopes for financial growth.

The practice involves Chopda Pujan (worship of account books) and lighting lamps at brokerages, creating a festive market atmosphere. This tradition reflects India’s evolving investment culture while maintaining its spiritual essence across generations.

Historical Performance of NSE and BSE on Muhurat Trading

Session-day returns are typically sub-1%, with most years showing modest gains rather than spectacular movements. Over the past decade, positive returns have occurred in eight out of ten Muhurat Trading sessions.

The average gains typically range between 0.4 and 0.5% for both Nifty and Sensex during the one-hour session. Negative returns, when they occur, are usually minor and attributed to broader market conditions rather than session-specific factors.

Ten-Year Performance Data

Conclusion

Muhurat Trading’s cultural significance lies in its role as a bridge between tradition and investment, fostering hope and community. Its historical returns underscore market realism, showing gains are common but not assured, influenced by macroeconomic factors.

Investors are encouraged to view it as a symbolic entry point rather than a predictive tool for market performance. This perspective aligns with the ritualistic essence of the tradition, emphasising auspicious beginnings over financial certainty.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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