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/Diwali Muhurat Trading

Diwali marks the beginning of a new traditional financial year for the Indian stock market.
To honor this, both the NSE and BSE open for a special, one-hour window known as Muhurat Trading. It usually happens on the evening of Laxmi Pujan.
While intraday traders see this as a brief live session to make quick profits, smart investors view it differently. It is a symbolic ritual of committing fresh capital to the markets to invite prosperity for the year ahead.
Let's look at what this session means for your wealth journey in 2026 and how you can make the most of it.
The stock market remains entirely closed on Diwali, except for this one special hour.
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Note: November 08, 2026, shall be a trading holiday on account of Diwali Laxmi Pujan. Muhurat Trading will be conducted on that day. The timings of Muhurat Trading will be announced in a later circular.
Note: All orders executed during this Diwali Muhurat Trading session carry real settlement obligations. You must have sufficient funds or margin available in your demat account to participate.
* Random closure in the last one minute.
Source - NSE
Historically, the Bombay Stock Exchange (BSE) started this tradition back in 1957. Brokers would close their old accounting books (a ritual known as Chopda Pujan) and open new ones, making a token trade to mark the beginning of a prosperous new year. The National Stock Exchange (NSE) has continued this tradition since 1992.
Today, the market opens for about an hour across all segments Equities, Futures & Options (F&O), Currency Derivatives, and Commodities.
However, because the session is only open for an hour, market volumes are usually lower than regular days, and price movements can be erratic. Because of this volatility, treating Muhurat Trading like a regular intraday session is risky.
Instead, it is the perfect time to execute long-term wealth-building decisions.
If you are planning to deploy funds this Diwali, you need a strategy that aligns with the festive spirit while making financial sense. Here is how smart investors use this auspicious hour:
Diwali is considered the best time to start something new. Instead of trying to time the market for a single stock, use this day to start a new Systematic Investment Plan (SIP) in a top-performing mutual fund. It automates your wealth creation for the rest of the year and averages out your investment cost over time.
The market is closed for the rest of the day. Use this quiet time to review your Portfolio Management Services (PMS). Are your equity allocations beating the benchmark? Are your debt instruments protecting your capital? If your portfolio hasn't been reviewed recently, Diwali is the perfect reminder to do so.
Festive excitement can sometimes lead to WhatsApp rumors driving up random stocks. Stick to the fundamentals. Use this session to buy into high-quality mutual funds or large-cap equities that align with your long-term financial goals.
Low liquidity makes it very easy to manipulate small-cap or penny stocks during this one-hour window. Protect your wealth by avoiding speculative trades. Focus on diversified mutual funds or expert-curated PMS strategies instead.
No. Investing during this period does not guarantee returns. Even if a stock and fund performs well on the evening of Diwali, its future performance will always depend on its fundamentals and macroeconomic factors.
The session is historically bullish because the festive spirit focuses on prosperity, driving people to be optimistic about the economy. But sentiment cannot sustain a stock's price forever only its business fundamentals can.
Muhurat Trading is less about making a quick profit and more about setting the right intention for your financial future. It is about committing capital to build lasting wealth.
If you aren't sure which mutual funds to pick, or whether your current PMS strategy is right for your risk profile, don't guess this Diwali. Let our experts help you build a portfolio designed to compound your wealth safely.
Get a Complementary Expert Portfolio Review Before Diwali Muhurat Trading Day.
Muhurat Trading is a special, one-hour trading session held on the evening of Diwali (Laxmi Pujan). Both NSE and BSE open the market for this brief window, allowing investors to make token trades to invoke prosperity for the new financial year.
Muhurat Trading in 2026 will be held on Sunday, November 8, 2026. The exact timings are usually announced by the NSE a few weeks prior. It generally occurs in the evening, between 6:00 PM and 7:00 PM.
Yes. While direct stock trading is common, many investors use this auspicious hour to initiate new SIPs or invest in mutual funds as a commitment to long-term wealth creation.