On Diwali day, November 7, the stock exchanges — BSE and NSE — said they will conduct it's annual muhurat trading from 5:30 PM to 6:30 PM, following the rituals set by the old trading communities.
It's believed that the one-hour of trading will bring in more wealth and prosperity for the trader and/or investor for the whole year, as the festival is also considered to be beginning of the New Year, that is Samvat 2075. The hour of trading was also earlier used by brokers to open their new settlement accounts.
The pre-opening session will begin 15 minutes prior to the muhurat trading open, that is 5:15 PM, the stock exchanges said.
If an individual is considering to become an investor, the individual is likely to invest for the first time during this hour as it's a good opportunity for the aspiring investor to understand the concept and the nitty-gritties of the stock market.
Most times investors pickup long-term stocks during the one-hour trade as the stocks are expected to garner gainers, especially the shares bought during Diwali.
However, investors celebrating Diwali have to take note of the recent developments that have happened in the economy, such as the rising bad loans situation and its impact on the financial sector, the volatile oil prices and the impact of the currency on the shares of the company.
The investors are advised to look out for companies that have consistently shown good returns in the recent past.
First Published: IST