Every year on Diwali, there is a one-hour special trading session in the stock market. Which is also called Muhurta trading. This day is considered very auspicious for investment. Investors also see this as an opportunity to earn money. This year, BSE and NSE will start Muhurat trading session from 6:00 pm to 7:00 pm on Friday, November 1. Whereas the market will remain closed the whole day.
The biggest question is whether investors benefit on the day of Muhurta trading or not. Historically, Muhurat trading sessions have been a money maker for investors. Even if the trading volume has been relatively low. Out of the last 16 years, the stock markets have closed in the green in 13 Muhurta trading sessions. Let us also tell you what kind of stock market figures have been seen in the Muhurta trading sessions in the last one and a half decade?
How were the Muhurat trading sessions last year?
In 2023, Diwali was celebrated on 12 November. On this day, in the special sessions, the stock market showed the second best performance in the last 5 years and made the investors rich. Bombay Stock Exchange’s main index Sensex closed at 65,259 with an increase of 355 points or 0.55 percent and Nifty 50 closed at 19,525 with an increase of 100 points or 0.52 percent. Mid and smallcap stocks outperformed, with the BSE Midcap index rising 0.67 per cent and the BSE Smallcap index rising 1.14 per cent. Investors increased the market cap of all the companies listed on BSE to Rs 322.5 lakh crore.
This means that investors made a profit of about Rs 2.2 lakh crore that day. Last year, 28 out of the top 30 Sensex stocks and 43 out of the top 50 Nifty stocks made good earnings. If we talk about top gainers, Coal India, UPL, Infosys and Eicher Motors are included. Talking about sectoral indices, Nifty IT rose by 0.72 per cent, Nifty Metal and Realty indices rose by 0.6 per cent and Nifty Bank rose by 0.40 per cent to close at 43,996.65.
In which year was the maximum profit in the last one and a half decade
In the last few years, there has been a rise in the stock market on Muhurta trading days. For example, the index increased by approximately 1 percent in 2022, 0.5 percent in 2021, 0.47 percent in 2020, and 0.37 percent in 2019, compared to 0.7 percent in 2018. A slight decline has also been observed. On the other hand, there has been a decline of 0.6 percent in 2017, 0.04 percent in 2016 and 0.3 percent in 2012. If we talk about the year with the highest returns, then the Muhurta trading session on October 28, 2008, during the Global Financial Crisis, saw a rise of 6 percent in the stock market. Since then, such a huge increase has never been seen.
Nifty’s performance on Muhurta trading in the last one and a half decade
| Year | Nifty rise/fall on muhurat trading |
| 2023 | 0.52% |
| 2022 | 0.88% |
| 2021 | 0.5% |
| 2020 | 0.47% |
| 2019 | 0.37% |
| 2018 | 0.7% |
| 2017 | -0.6% |
| 2016 | -0.04% |
| 2015 | 0.5% |
| 2014 | 0.2% |
| 2013 | 0.2% |
| 2012 | -0.3% |
| 2011 | 0.2% |
| 2010 | 0.5% |
| 2009 | 0.02% |
| 2008 | 5.9% |
What do experts say?
Experts advise to be careful on the day of Muhurta trading. Given the limited liquidity on Muhurta trading days, it is generally suggested that investors, especially beginners, make token investments rather than large trades. A financial advisor can also be consulted for this day. Especially when any investor is confused about which share to invest his money in. Experts consistently advise not to let festive sentiments dominate investment decisions. Rather, use this opportunity for strategic, long-term benefits.
