Features
- Life Cover till 85 years for Life & Life Secure Option
- 3 Payout Options
- Special Rates for Women
- Option to exit the policy with premium refund at the age of 60*
- Special Rates for Non-Tobacco Users
- Free Medical Check Up every 5th year**
Ref. No. KLI/22-23/E-BB/492
Trading: Diwali's Auspicious Hour for Wealth and Prosperity
Muhurat Trading is the auspicious hour for stock market activity in India, symbolizing the pursuit of wealth and prosperity as investors engage in special trading sessions to invoke good fortune.
- 4,437 Views | Updated on: Mar 01, 2024
Key takeaways
- Diwali Muhurat Trading holds great importance, as trading during this auspicious hour brings prosperity and financial growth to stakeholders.
- This year’s Muhurat trading session was scheduled for Sunday, November 12, from 6 PM to 7:15 PM.
- Traders pledge to purchase or sell a security at a pre-established price, and this transaction must be duly reported to the stock exchange.
- The stock exchange determines the opening price through an eight-minute process.
- Muhurat Trading on Diwali uniquely blends traditional and modern financial practices.
Diwali, hailed as the most auspicious time in the Hindu calendar, signifies a period of rejuvenation, triumph, and new beginnings. It also serves as an opportune moment to adopt a proactive approach to welcoming prosperity. In pursuing wealth, you will recognize that it extends beyond financial expertise and is influenced by luck or destiny.
Amidst the auspicious evening hours on Diwali, the Indian stock market briefly opens for an hour during the Muhurat Trading. This window offers individuals a chance to generate wealth, engage in profitable trades, and commence the new year, the Samvat, on a positive note. The belief is that participating in this ritual sets the stage for prosperity throughout the entire year.
Historical Significance of Diwali Muhurat Trading
The tradition of Muhurat Trading dates back to ancient times when merchants and traders would perform a puja (ritual) seeking the blessings of the goddess Lakshmi, the Hindu goddess of wealth and prosperity. It was believed that initiating business activities during this auspicious hour would bring success and good fortune throughout the year. Over time, this practice evolved into a formalized Muhurat Trading session on Diwali in the Indian stock markets.
Timings of Diwali Muhurat Trading
This year’s Muhurat trading session was scheduled for Sunday, November 12, from 6 PM to 7:15 PM, incorporating a 15-minute pre-market session. During this timeframe, trading occurred across different segments, encompassing equity, commodity derivatives, currency derivatives, equity futures & options, and Securities Lending & Borrowing (SLB).
What Happens During Muhurat Trading?
In celebration of Diwali, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) organize the Muhurat trading session, which includes:
Block Deal Session
During this initial stage, traders pledge to purchase or sell a security at a pre-established price, and this transaction must be duly reported to the stock exchange.
Pre-Market Session
During the pre-market session, orders are collected, modified, or canceled by the exchange. Clients can place limit or market orders during the collection window.
Primary Trading Period
This constitutes the central phase of Muhurat trading, spanning about one hour, during which most transactions occur.
Auction Call Session
In this session segment, trades involving infrequently traded securities, referred to as ‘illiquid’ based on specific criteria set by the exchange, are conducted.
Closing Phase
During this stage, traders and investors submit orders at the market’s closing price.
Final Thoughts
Muhurat Trading on Diwali uniquely blends traditional and modern financial practices. It reflects the cultural significance of Diwali as a time for new beginnings and the pursuit of prosperity. While the actual impact of this special trading session on market trends is debatable, the ritualistic aspect and the positive sentiment it generates among investors contribute to the allure of Muhurat Trading. As the opening bell rings during this sacred hour, it symbolizes the beginning of trade and the hope for a year filled with wealth, success, and prosperity.
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Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Features
- Life Cover till 85 years for Life & Life Secure Option
- 3 Payout Options
- Special Rates for Women
- Option to exit the policy with premium refund at the age of 60*
- Special Rates for Non-Tobacco Users
- Free Medical Check Up every 5th year**
Ref. No. KLI/22-23/E-BB/2435