Everything you need to know about Muhurat trading

The "muhurat" trading session will be conducted for 75 minutes today, on leading bourses NSE and BSE, to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity. It would also mark the New Year for traders as per the Hindu calendar, or Samwat 2069.

What is Muhurat Trading:

It is believed that "Muhurat' is an auspicious time according to the Hindu calendar where the planets align themselves in such a way that the task you perform during this time duration, becomes fruitful and without the influences of evil forces. While getting married on a specific Muhurat is common, so is trading in the stock markets during the Diwali day at a specific Muhurat time.

Why Muhurat Trading:

 Everything you need to know about Muhurat trading

Mahurat trading would also mark the New Year for traders as per the Hindu calendar, or Samwat 2069. Reuters

It's a tradition to trade during the Muhurat, as worship towards the Hindu Goddess of wealth. Trading on this day, which is also the day when the Hindu financial years begins and is considered to bring blessing for the year ahead. Also, the Gujarathi community begins there new year a day after Laxmi Puja (Muhurat Trading Day).

What's the time this year:

Muhurat trading is approximately an hour of trading that happens on Diwlai (Laxmi Puja) day, usually in the evening. The time for Muhurat trading changes every year. This year on Bombay Stock Exchange as well as National Stock Exchange it will happens from 3:45 pm to 4:30 pm.

How much is traded:

Trades made on this day are more for traditional, religious and sentimental reasons, Brokers and investors will make token investments and usually hold the stock for a year or so. So also book intra-day profits. However, the next day after the Muhurat trading day, the market has always seen a rally.

What you should do:

Over the last 10 odd years, Muhurat trading has seen markets perform well on the Muhurat day and show positive returns. If you want to experience Muhurat Day trading you could make a token investment keep in mind the basic fundamentals of investing. But, keep in mind, for lay investors it's always the long-term strategy of investments based on your financial goals that week.

Updated Date: Dec 20, 2014 20:24:06 IST