Muhurat Trading: How a Diwali Tradition Became a Special Session on Dalal Street

The practice is rooted in the belief that carrying out financial activities during an auspicious time on Diwali brings prosperity and good fortune. Over the years, investors and stock market participants have adopted this tradition as a way to begin the new business year by making investments and conducting symbolic transactions.

Deven Choksey, Managing Director of DR Choksey FinServ, says the origins of Muhurat Trading are connected to the Indian tradition of purchasing something new during an auspicious period.

According to him, people traditionally buy new items and bring them home on Diwali and Dhanteras. While some purchase books, others prefer items made of precious metals. People associated with the stock market gradually connected this belief with investing, beginning to purchase shares during an auspicious period to mark the start of a new year for their businesses and investments.

In earlier times, Diwali preparations were not limited to homes and shops. Stockbrokers' offices also underwent special preparations for the festival.

According to a report published by The Economic Times, brokers used to clean their offices on Dhanteras, purchase chopdis, or accounting registers, and organise their previously ordered transaction books. This was followed by Lakshmi Puja and Chopra Puja, during which account books were worshipped in the hope of a prosperous business year ahead.

The report also records the experiences of Priyakant Dalal, a former broker associated with Dalal & Broacha Securities, who had been participating in such celebrations since 1955.

At the time, several brokers' offices were located around the Bombay Stock Exchange (BSE). This made it convenient for them to visit one another's offices and exchange Diwali greetings after performing the puja. On Diwali, brokers would also gather in the BSE's main hall for Muhurat Trading.

Dalal's experience offers an insight into the traditions followed by stock market participants during that period. However, his participation in these celebrations since 1955 does not establish that formal Muhurat Trading at the exchange began in that year.

According to the BSE, the tradition of Muhurat Trading on Diwali dates back to 1957. The exchange's 2024-25 annual report mentions that the practice began in 1957, with the reference appearing on page 22.

Investor and trader Harsh Vora also identified 1957 as the year Muhurat Trading began at the BSE in an article published on Tickertape on October 26, 2021.

Vora explains that the session is associated with the beginning of the business year. Many investors purchase a small number of shares during this period to welcome the new year.

However, the BSE's annual report does not identify the person who initiated the first session, the individual who placed the first trade or the company whose shares were purchased.

Choksey says the underlying idea behind Muhurat Trading was that people should begin something new in their respective professions during an auspicious period. For those associated with the stock market, this could mean purchasing a few shares or executing a small transaction.

He explains that transactions during the earlier years were generally small and symbolic. The objective was not to earn substantial profits but to mark a fresh beginning in the market on an auspicious day.

He also connects the practice with the beginning of a new business year, which is why investing some money in the market on Diwali is considered auspicious.

Senior journalist Alok Joshi also links Muhurat Trading to the faith and religious traditions of people associated with the stock market.

He says Goddess Lakshmi is regarded as the deity of wealth, while Lakshmi and Lord Ganesha are worshipped by those involved in investing and trading. Since regular market operations remained closed on Diwali, a tradition developed of conducting a small amount of business around the time of Lakshmi Puja as a way of worshipping their revered deities.

However, purchasing shares during an auspicious period remains a matter of faith and market tradition. There is no guarantee that a transaction executed during Muhurat Trading will generate profits.

The process of buying and selling shares was considerably different when the tradition began. Today, investors can execute transactions within seconds using mobile phones and computers. In the early days of Muhurat Trading, however, investing was not nearly as convenient.

Choksey explains that buy and sell orders were written on slips of paper. Investing was not as accessible to ordinary people as it is today, making the special Diwali trading session considerably more significant.

People would conduct a small amount of business on this occasion to maintain the tradition of making an auspicious beginning. Over time, the trading process evolved, and computer-based transactions replaced the earlier methods.

At the National Stock Exchange (NSE), electronic trading in shares began on the evening of November 3, 1994, during Diwali Puja.

It is therefore important to distinguish between the establishment of the NSE and the commencement of share trading on the exchange. Several accounts mention 1992 as the year Muhurat Trading began at the NSE. However, according to the exchange's records, share trading operations commenced in 1994.

The timing of Muhurat Trading does not remain the same every year. The BSE and NSE announce the date and timings through separate circulars.

This year, the main equity trading session is scheduled for November 8, from 2:20 pm to 3:30 pm. The pre-open session will begin at 2:05 pm.

During the pre-open session, initial buy and sell orders are collected. The process also determines the opening prices of shares when the market begins trading.

In 2024, Muhurat Trading was held on November 1, from 6 pm to 7 pm, with the pre-open session scheduled between 5:45 pm and 6 pm.

On October 21, 2025, the main trading session took place from 1:45 pm to 2:45 pm. The pre-open session was held between 1:30 pm and 1:45 pm.

These timings demonstrate that Muhurat Trading is not necessarily conducted in the evening. The schedule can change from one year to another.

The main Muhurat Trading session generally allows investors to buy and sell shares. Separate timings may also be announced for the pre-open session, block deals and certain categories of securities.

Muhurat Trading is not restricted to equity markets. In 2025, separate special sessions were also organised for futures and options trading alongside equity trading.

Commodity markets also conducted special trading sessions. These allow participants to buy and sell contracts linked to the prices of gold, silver and other commodities.

In 2025, the main trading session for all these segments ran from 1:45 pm to 2:45 pm.

Buying a contract linked to a metal and purchasing shares of a company involved in trading that metal are two different forms of investment.

The NSE offers trading in commodity contracts linked to gold, silver, copper, aluminium and zinc. The Multi Commodity Exchange (MCX) also conducts Muhurat Trading on Diwali.

Trading arrangements are not identical for every company in the equity market either. Shares available for trading during the Muhurat session remain subject to the applicable stock market rules.

Over the years, the BSE has also invited film personalities as special guests to its Muhurat Trading ceremonies.

In 2015, actress Esha Koppikar rang the ceremonial bell alongside BSE officials to mark the beginning of Muhurat Trading.

In 2019, Mouni Roy and Rajkummar Rao attended the ceremony as special guests. According to records of the BSE Institute, Mouni Roy rang the bell after Lakshmi Puja to formally begin that year's Muhurat Trading session.

In 2022, Ajay Devgn rang the bell alongside his team and senior BSE officials to inaugurate the Diwali trading session. The BSE's 2022-23 annual report also confirms the event.

The ceremonial bell signals the beginning of the special trading session, after which buying and selling commence at the scheduled time.

Although transactions during the earlier years were often small and symbolic, trades executed to uphold the tradition are still genuine market transactions.

Once investors buy or sell shares during Muhurat Trading, the settlement must be completed according to the established stock market rules. Payments and share transfers are processed in the same manner as on a regular trading day.

Market expert Harsh Vora writes in his article that the fundamental rules of investing and trading do not change during Muhurat Trading.

A festival cannot alter a company's business performance, nor does it automatically make a particular stock worth buying. Investors must therefore exercise the same caution during Muhurat Trading as they would on any ordinary trading day.

While the methods of buying and selling shares have changed significantly over the decades, the belief in making an auspicious beginning remains at the heart of Muhurat Trading. This combination of religious tradition and financial activity continues to make the brief Diwali trading session significant for many investors.