What is muhurat trading and which stocks to pick during muhurat trading 2021.

06 November 2021 10:57:AM

Stocks_To_Buy_During_Muhurat_Trading Stocks_To_Buy_During_Muhurat_Trading

Change is inevitable. Some traditions are discarded to make way for better ones despite opposition at the start. Take the stock markets for instance which in the 90s embraced technology and mooted out the traditional method of physically going to the exchange floor to trade it was one chaotic floor. However, some traditions are not being discarded but are reveled in and awaited with bated breath regardless of the time. For the Indian investor community, Muhurat trading is one such tradition that it holds dear to itself. 

Invest for long term during this auspicious event of muhurat trading  Reveal Now

What is muhurat trading?

Muhurat, which means auspicious time, is a Hindi word measured on the basis of favorable planetary and star alignments. For Hindu astrology, muhurats are significant. Muhurat trade has been organized by stock exchanges in India for a long time. It is an annual ritual that everyone is looking forward to. It is an hour-long trading session held by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on the day of Diwali when the markets are shut for the day. The day also marks the beginning of the Hindu traditional year Samvat. 

Trading in Muhurat typically occurs in the evening. Stock exchanges declare a special one-hour trading session during which, to mark the beginning of a new financial year, Hindu traders and investors participate in the purchase and sale of stocks. They assume that during the year it gives them good luck and happiness.

This year, it will be held on the evening of 4 November 2021 between 6.15 pm and 7.15 pm

Stocks to invest in during Muhurat Trading  Learn More

History of muhurat trading:-

One has to go back to 1957 BSE to understand how Muhurat trading started? During those days, online trading was a non-existent term so everyone would gather at the exchange floor in the best of clothes and indulge in trading at a time astrologers would term auspicious. NSE is said to have started this tradition in 1992. 

For the Gujarati and Marwari communities in India, the two most prominent business communities, the day is of tremendous significance. For them, the session marks Samvat, or the new year. They're closing the old ledgers, opening the new ones. During the Samvat trade, several individuals participate in stock trading and investment. The Diwali special trading session lasts for an hour, and the next day the market remains closed.

Most investors believe buying a few stocks or Muhurat stocks as they are termed during that evening hour will bring them positivity and good fortune from Lakshmi, the goddess of wealth and prosperity. The stocks bought during this time are often held until the end of the year and some pass it down to the next generation. 

Muhurat trading is a good time for newcomers to enter the markets because it’s an auspicious time for any new journey and because the trading volume is low, there is less risk of market volatility.

If there is one point, new traders must remember is that Muhurat trading is not a profit-guarantee exercise. The investor community considers it an auspicious time and your focus should lie on picking up quality long-term stocks. 

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