Diwali holds a special significance in our culture. It is that auspicious time of the year when anything you start is believed to usher in prosperity. Many stock market investors believe that investing on this day may bring them good fortune and favourable potential returns all year through. Respecting this belief of many Indian investors, the stock exchanges of the country (The Bombay Stock Exchange and the National Stock Exchange) conduct a Muhurat trading session every year on Diwali day.
Many investors and traders participate in this session to mark the beginning of the new financial year according to the Hindu calendar (Samvat).
In this article, we will explain what Muhurat Trading is, its history, what happens during this session, the expected timings for 2025 and key points to remember if you are planning to take part.
Table of contents
Understanding Muhurat trading
Every year, the Indian stock exchanges conduct a special one-hour trading session on the day of Diwali. Muhurat means a special and auspicious time as per the Hindu calendar. Many investors believe that trading during this time on Diwali may bring them good fortune. Muhurat Trading is exclusively done on Indian stock exchanges and is not conducted by any other global exchanges.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) both hold this symbolic trading window. Investors, brokers and traders actively participate in this event, not only for financial gains but also as a part of broader cultural and religious sentiment.
Also Read: What is the Difference Between BSE and NSE?
History of Muhurat trading
The tradition of Muhurat trading began decades ago with the BSE in the year 1957, much before the NSE was established. The session was introduced as a symbolic gesture, aligning with the Hindu belief that Diwali marks the start of the financial new year in many Indian business communities.
Historically, several trading families in Gujarat, Rajasthan and Maharashtra began their financial year on Diwali, closing their old account books and opening new ones. This tradition was called ‘Chopda Pujan’, where business ledgers were worshipped, symbolising the beginning of fresh financial activities.
When stock exchanges institutionalised this practice, it became a festive market event where cultural traditions merged with modern financial systems.
What occurs at the time of Muhurat trading?
Although practically the Muhurat Trading session usually lasts for one hour, the exchanges also provide a pre-opening session and a post-closing session for order-matching and settlement purposes.
Pre-opening session:
This is the short window before the Muhurat Trading session, where investors may place orders before the actual trading begins. This helps in discovering the opening price for stocks.
Muhurat trading window
This is the main one-hour slot where buy and sell transactions happen. Many investors place symbolic trades, even if small in size, as a ritual.
Post-close session
Once the Muhurat Trading session closes, the exchange allows a brief session for order adjustments and settlement.
Muhurat trading timings 2025
The National Stock Exchange of India (NSE) has announced that it will conduct a special Muhurat trading session on the occasion of Diwali on Tuesday, October 21, 2025. According to the circular issued on Monday, 22/09/2025 the one-hour trading window will begin at 1:45 pm and conclude at 2:45 pm.
As per the schedule, there will be a 15-minute pre-opening session starting at 1:30 pm, after which regular trading will commence from 1:45 pm. The exchange has also specified that the trade modification facility will remain open until 2:55 pm. Muhurat Trading holds special significance as it marks the beginning of a new Samvat, the Hindu New Year.
Apart from this one-hour special session, the stock exchanges will remain closed on Tuesday, October 21 for Diwali Laxmi Pujan. They will also observe a full-day holiday on Wednesday, October 22, on account of Diwali Balipratipada.
In 2024, Muhurat Trading was held on November 1, 2024, and the one-hour window ran from 6:00 PM to 7:00 PM.
Who benefits from Muhurat Trading?
Since Muhurat Trading is considered to be an auspicious time for investing money, all kinds of investors generally participate in it.
New investors
Muhurat trading serves as an important and culturally relevant learning experience. Many families may introduce first-time investors to the stock market on this occasion, making it a suitable starting point.
Long-term investors
The session may be favourable for those with a long-term view. Historically, equities have shown growth over the long-term, so Diwali festivities may mark an optimistic and opportune moment to invest in the Indian market.
Seasoned investors
For experienced investors, Muhurat trading provides a chance to review, rebalance, and refresh their portfolios in line with market conditions.
Brokers and traders
This session may also benefit brokers, as it allows them to strengthen client relationships, build goodwill, and share personalised investment recommendations.
Things to keep in mind before indulging in muhurat trading
Check official timings
Since the trading window is open for a limited time, it might be sensible to confirm the session schedule announced by the NSE and BSE in advance.
Focus on symbolic trades
If you are not an experienced investor, then you may want to focus on symbolic trades. Investors may often buy a few shares of quality companies rather than speculate with large volumes.
Avoid overtrading
There is a chance that the festive time may stimulate investor excitement, but it is advised to remain cautious about making large speculative bets.
Also Read: What Are Stock Market Timings
Conclusion
Muhurat trading is a unique tradition in Indian stock markets that blends culture, belief and finance. While the one-hour session may not significantly impact long-term portfolios, it holds sentimental value for many investors and families.
FAQs
What is Muhurat trading time in the stock market?
It is a special one-hour trading session conducted by NSE and BSE on Diwali day.
When does Muhurat trading day usually occur?
It usually occurs on Diwali, which falls in either October or November, depending on the Hindu calendar.
How is Muhurat trading time determined each year?
Both the NSE and BSE decide the exact time each year and release a circular ahead of Diwali.
What are the typical trading hours for Muhurat trading?
There are no typical trading hours for Muhurat Trading as it is decided by the exchanges. In 2024, it was between 6-7 pm and this time in 2025, it is between 1:45 - 2:45 pm.
Can I place normal orders during Muhurat trading time?
Yes, investors may place buy and sell orders like in regular sessions, although the duration is shorter.
Is there a difference between regular trading and Muhurat trading?
The main difference is that Muhurat trading is symbolic and conducted only for one hour, whereas regular trading happens during normal weekday market hours.
How do I prepare for Muhurat trading if I’m a new investor?
New investors may consider starting with small trades, checking the official exchange timings and focusing on quality stocks.
Does the stock market remain open for a full session on Muhurat trading day?
No, exchanges remain closed for the full day on Diwali except for the special one-hour Muhurat trading window.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.
The content herein has been prepared on the basis of publicly available information believed to be reliable. However, Bajaj Finserv Asset Management Ltd. does not guarantee the accuracy of such information, assure its completeness or warrant such information will not be changed.The tax information (if any) in this article is based on current laws and is subject to change. Please consult a tax professional or refer to the latest regulations for up-to-date information.
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