Dalal Street’s Diwali Ritual: All You Need to Know About Muhurat Trading 2025

The Indian financial markets are set to observe a crucial two-day break this week, but not before participating in one of the stock market’s most cherished annual rituals. The BSE and NSE will hold a special one-hour Muhurat Trading session today, October 21, to mark the beginning of the Hindu New Year, Samvat 2082.

While regular trading remains suspended for the day in observance of Diwali Lakshmi Pujan, this brief, ceremonial window allows investors to place token trades, blending centuries-old traditions of wealth and prosperity with modern-day finance. Markets will then remain fully closed tomorrow, resulting in a three-day pause in normal activity before regular hours resume.

The Auspicious Hour: Muhurat Trading Schedule

For traders and investors looking to participate in this auspicious session, the timings have been confirmed, noting a significant change in the schedule for 2025.

Unlike recent years where the session took place in the evening, the Muhurat Trading window is set for the afternoon.

Pre-Open Session – 1:30 PM to 1:45 PM 
Main Trading Session – 1:45 PM to 2:45 PM

The session will be operational across all segments, including equities, futures and options, currency derivatives, commodity derivatives, and Securities Lending and Borrowing (SLB). It is widely viewed by investors as a chance to make their first, symbolic investment of the new financial year, praying for future success and financial growth.

Faith Meets Finance: The Tradition of Samvat 2082

The term Muhurat itself is derived from Sanskrit, signifying an ‘auspicious hour’, a precise time believed to be favourable for beginning new ventures.

The tradition dates back to 1957 when the BSE first introduced the ritual, primarily serving the traditional Indian business communities, such as the Marwaris and Gujaratis, who historically considered Diwali as the start of their new accounting year. This practice, known as Chopda Pujan*(worshipping new account books), was seamlessly integrated into the stock market culture.

Post-Diwali Stock Market Holidays Explained

Following the short burst of activity today, the stock exchanges will remain fully closed on Wednesday, October 22. This closure is in observance of Balipratipada, also known as Bali Pratipada. The observance of Balipratipada ensures a consecutive two-day trading holiday (excluding the Muhurat session) for the NSE and BSE, with regular operations set to resume on Thursday.

A Cautionary Note for Investors

While the mood is celebratory, market analysts are advising caution for those engaging in the one-hour session. Due to its ceremonial nature:

Low Liquidity: Trading volumes are typically thin during Muhurat Trading, which can lead to rapid price movements and wider bid-ask spreads.
Volatility Risk: The session is susceptible to increased volatility. Investors are advised to focus on token purchases of fundamentally strong, blue-chip stocks rather than engaging in high-frequency or large speculative trades.
Settlement Rules: It is crucial to remember that all trades executed during this session are real and carry normal settlement obligations.

The two-day break also warrants careful planning for those with short-term strategies, as any open positions will need to weather the collective market pause.

Looking ahead, analysts project that Samvat 2082 could be driven by robust earnings growth in key sectors such as Auto and Financials, although global economic uncertainty remains a persistent factor.

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