Muhurat trading 2025: Diwali's golden hour for stock market investors

VMPL

New Delhi [India], October 21: Every Diwali, along with the flickering of diyas and the festivities, the Indian stock market also gets its moment of 'light' through Muhurat Trading. The trading session, which mixes tradition and finance, is considered to be one of the most auspicious times to begin or recommence your investing journey. There are plenty of investors, traders, and new investors who celebrate this occasion thinking that the trades they make during this hour will ensure profits for the rest of the year.

But what exactly makes this one-hour window so significant? And how can you make the most of it in 2025? Let us break it down.

Understanding Muhurat trading

Muhurat Trading is a ceremonial trading session held annually on Diwali by Indian stock exchanges. The word "muhurat" denotes an auspicious moment in Hindu philosophy. The session usually lasts for an hour in the evening, signifying the start of a new financial year in the Hindu calendar known as Samvat.

The tradition began decades ago when trading communities participated in prayer and worship before starting their financial year to the goddess of wealth, Lakshmi. Today it relies on a mix of faith, hope, and existence of the marketplace. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are normally the two participants, with thousands of traders and investors.

Why investors eagerly await Muhurat trading

Market sentiment typically starts to build up every year with the onset of Diwali - and for good reason. Muhurat Trading is not only an emotional ritual, but it also signifies the sentiment of the market itself that of confidence. The new beginning and creation of wealth makes this an attractive moment for investors of all ages and experience.

Before you enter the fray, however, ensure that you open a Demat Account if you do not already have one. Your Demat Account is the window to trading stocks, mutual funds, or exchange-traded funds (ETFs) all electronically. Setting it is easy, and it keeps your shares safely stored in an electronic account rather than a physical certificate. Without a Demat Account you are unable to participate in any form of trading Muhurat Trading or otherwise.

By taking this one simple step, you can join millions of others in beginning this financial journey, with positivity and intention.

Historical performance of Muhurat trading sessions

If you examine past Muhurat sessions, there is enough evidence to suggest one trend they generally end up closing in the green. While this is in no way indication of future returns, the trend is generally higher, due to the festive mood of traders.

* In previous years, benchmark indices such as Sensex and Nifty end up with slight gains, in the majority of Muhurat session

* Increased trading volume on Muhurat is observed as institutions and retail participants engage in these ritual trades.

* Market participants buy blue-chip and fundamental stocks in keeping with their long-term portfolio strategies.

* Volatility is generally less pronounced since trading time is short, and traders engage in trading based on market sentiment only.

Otherwise, performances would depend on global signals, market trends, and general investor psyche.

What makes 2025's Muhurat trading special

Each year brings unique circumstances to the celebration and 2025 will be no different. With India's economy growing and increased investor involvement, the 2025 Muhurat session is expected to attract more first-time investors than ever before.

This year's trading environment is characterized by a growing level of confidence in local industries, advancements in digital finance, and an improving global sentiment. Investors will be focusing on sectors such as renewable energy and infrastructure and banking and technologyall sectors have produced consistent performance throughout the year.

Many experts believe that Muhurat Trading 2025 may also see significant participation from young investors who have been largely involved in online trading statistics. This year also seems particularly strong with the widespread availability of digital trading platforms as well as pure cultural reasons for people to consider investing in the market during Diwali.

How to prepare for Muhurat trading

Preparation is key, even when trading for symbolic reasons. Whether you are a seasoned investor or just getting started, the following steps can help you make the most of this special occasion.

1) Check the session timings

The stock exchanges usually announce the exact Muhurat Trading schedule a few days before Diwali. It includes pre-open, normal trading, and closing sessions. Always verify these timings through official exchange websites or your trading app.

2) Plan your trades in advance

Since the session lasts for just about an hour, there is no time to analyse charts during the event. Identify your target stocks beforehand and decide whether your intention is short-term profit or long-term holding.

3) Avoid impulsive trades

The festive excitement can make investors overconfident. Stay disciplined. Stick to your investment strategy and do not trade purely based on sentiment or speculation.

4) Choose fundamentally sound stocks

Many investors use this session to invest in companies with strong fundamentals. Blue-chip stocks, sector leaders, or exchange-traded funds (ETFs) are common choices.

5) Keep an eye on transaction charges

Even though this is a special trading session, normal brokerage and taxes still apply. Ensure your funds are settled, and your Demat and trading accounts are active.

The cultural significance of Muhurat trading

Beyond numbers and market trends, Muhurat Trading carries deep cultural meaning. For many families, it is more than just a financial event it is a moment to invoke blessings for wealth and success. Brokers decorate their offices, investors perform Lakshmi Puja, and the market floor buzzes with festive energy.

The session symbolises prosperity through effort, reminding traders that wealth creation should always align with positive intent and discipline. It also reflects the Indian belief that success is best achieved when paired with auspicious beginnings.

Common mistakes to avoid during Muhurat trading

While the mood is upbeat, caution should never take a holiday. Some common errors can affect your experience and results during this special session.

1) Entering without research

Trading impulsively, simply to participate, can lead to poor decisions. Even for symbolic trades, understand the stock's fundamentals.

2) Ignoring liquidity

With the session lasting just an hour, not every stock will have high trading volumes. Focus on liquid, actively traded shares to avoid price mismatches.

3) Overlooking costs

Brokerage, taxes, and other charges apply. If your investment amount is small, these could eat into your gains.

4) Treating it like regular trading

Muhurat Trading is more symbolic. Avoid overtrading or expecting large intraday profits.

Sectors to watch during Muhurat trading 2025

Every Diwali presents its own set of opportunities each year, and the 2025 edition is likely to focus on industries that align with the broader growth narrative unfolding in India. Here are some sectors to observe:

1) Banking and finance: The financial services industry continues to dominate the menu of market performance. Credit growth and rising digital banking could see generous returns as it continues into 2025.

2) Renewable energy: With India's focus on clean energy, this sector is a long-term sweetheart in the market. Solar and green energy companies are getting more attention from institutions.

3) Technology and digital innovation: The pipeline for technology stocks could continue to lock in steady performance amid ongoing global demand for software and information technology.

4) Consumer goods: Fast-moving consumer goods (FMCG) are likely to benefit from a post-festive demand bump alongside an increase in rural consumption.

5) Infrastructure and manufacturing: Government support, along with private investment, will inject excitement into numerous based infrastructure projects and generally make the infrastructure and goods sectors an investor's dream.

How to make Muhurat trading part of your investment plan

While symbolic trades bring good cheer, the real benefit lies in consistency. You can turn this occasion into a long-term financial ritual.

1) Use it as an opportunity to go back to your portfolio.

2) Set new objectives for the upcoming Samvat year.

3) Rebalance your portfolio to ensure diversification.

4) Think about doing small regular contributions rather than just worrying about today's valuation.

5) Think of it as the start of a new cycle, with emotion but reason as well, optimism comes from planning.

This approach ensures that your Muhurat investments hold long-term value beyond the celebration.

Final thoughts

Muhurat Trading 2025 is not simply a celebration in the stock markets; it is an expression of hope, togetherness, and belief in the economic future of India. For investors, it proves that investing, at its highest level, is not only about returns but the essence of belief, discipline, and continuity.

As lights adorn homes and markets, investors across the country will log in for their symbolic trades, denoting yet another year of prosperity and positivity. Whether you are a first-time trader or an experienced investor, this Diwali golden hour provides the best opportunity to reflect, plan, and take assured, confident steps towards your economic ambitions.

So, as you begin preparing for Diwali, consider adopting and forging Muhurat Trading 2025 into your own traditions, where blessings converge with opportunity and wealth begins with intention.

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