Stock market on Diwali 2025: What is Muhurat trading & what is it’s significance? Explained – The Times of India

Muhurat Trading: As Diwali 2025 approaches, the BSE and NSE will remain closed on Tuesday, October 21, for Lakshmi Puja. The only market activity on October 21 will be the one-hour Muhurat Trading session, a traditional ritual marking the start of the Hindu financial year. This year, the session will run from 1:45 PM to 2:45 PM.Though many households will celebrate Lakshmi Puja on the evening of October 20, the stock exchanges will officially observe the holiday the next day. Markets will also remain closed on Wednesday (October 22) for Balipratipada, Dhanteras (October 18) and the weekend (October 19).

What is Muhurat Trading?

Muhurat Trading, literally meaning “auspicious hour,” is a symbolic trading session held annually during Diwali. It is considered a favourable time to begin new investments or business ventures, reflecting optimism and faith in prosperity. It is a special one-hour session on the stock market, during which trading is permitted across equities, futures and options, currency and commodity derivatives, and securities lending and borrowing (SLB). This year, unlike recent years, the session will take place in the afternoon rather than the evening, with trade modifications allowed until 2:55 PM.

What is the significance of Muhurat Trading?

The session marks the start of Hindu New Year (Samvat 2082), symbolising renewal, prosperity, and good fortune for investors. Historically, the session has been positive for markets: in 14 of the last 18 Muhurat Trading sessions, the BSESensex closed higher. Even during turbulent periods, such as the 2008 financial crisis, the Sensex rose 5.86% during Muhurat Trading, ET reported.Experts note that while the session is short and often volatile due to thin trading volumes, it is more symbolic than profit-driven. However, investors typically view the session scheduled on October 21, 2025, from 1:45 PM to 2:45 PM, as both a cultural and financial ritual, with many believing that investments made during this auspicious hour can bring prosperity and good fortune for the year ahead.