The activity in the stock market during Diwali draws the attention of investors every year. Sometimes the market sees a strong rally, while at other times, the sentiment remains somewhat subdued. Looking at the data for ‘Muhurat Trading’ over the past 10 years reveals several interesting insights. In this blog, we will examine these figures and market trends to understand how the market has behaved on this special day.
What Is Muhurat Trading and Why Does It Matter?
As people embark on new ventures during Diwali, the stock market also witnesses something unique. Many investors purchase shares during ‘Muhurat Trading,’ as they wish to begin the new Samvat (financial year) with an investment. But what exactly happens in the market on this day, how is trading conducted, and what has the market trend been like in previous years? It is important to understand these aspects, especially if you are considering participating in Muhurat Trading for the first time.
The Tradition of Muhurat Trading
On Diwali, traders traditionally open new account books following the worship of Goddess Lakshmi (Lakshmi Pujan) and commence their business activities. This tradition extends to the stock market as well. Some people purchase shares on this day alongside their families, while others view it as an opportune moment to begin their investment journey.
How is Muhurat Trading conducted in India?
Every year, the NSE and BSE announce a specific time for Muhurat Trading during Diwali. This session is shorter than a regular trading session. In 2026, Muhurat Trading will take place on Sunday, November 8.
| Session | Time |
|---|---|
| Pre-open session | From 2:05 PM to 2:20 PM |
| General trading in equities | From 2:20 PM to 3:30 PM |
| Futures and Options (F&O) | From 2:20 PM to 3:40 PM |
| Currency and Commodity Trading | From 2:20 PM to 3:30 PM |
How to place an order during Muhurat Trading?
- Check the timing: Just before Diwali, log into your broker app or Pocketful app or check the NSE/BSE website to see the exact timings.
- Select the shares: Do a quick check on the company’s business model and make sure their financial condition actually looks stable.
- Place an order: Head to your trading app, enter how many shares you want, and set your price. If you use a ‘limit order,’ you get to lock in the highest price you’re okay paying.
- Verify if the order is executed: Keep in mind that placing an order isn’t the same as actually buying the stock; it only counts once the exchange matches your order.
Muhurat Trading History – Nifty 50 and Sensex Returns
Looking at the data from the past ten years, the market trend during Muhurat Trading has largely been positive. However, the market did not see gains every Diwali; in 2016 and 2017, both major indices closed with a decline.
Performance of Nifty 50 and Sensex over the last 10 years
| Year | Date of Muhurat Trading | Nifty 50 Closing | Nifty 50 Returns | Sensex Closing | Sensex returns |
|---|---|---|---|---|---|
| 2016 | October 30 | 8,625.70 | -0.14% | 27,930.21 | -0.04% |
| 2017 | October 19 | 10,146.55 | -0.63% | 32,389.96 | -0.59% |
| 2018 | November 7 | 10,598.40 | +0.65% | 35,237.68 | +0.70% |
| 2019 | October 27 | 11,627.15 | +0.37% | 39,250.20 | +0.49% |
| 2020 | November 14 | 12,780.25 | +0.47% | 43,637.98 | +0.45% |
| 2021 | November 4 | 17,916.80 | +0.49% | 60,067.62 | +0.49% |
| 2022 | October 24 | 17,730.75 | +0.87% | 59,831.66 | +0.87% |
| 2023 | November 12 | 19,525.55 | +0.51% | 65,259.45 | +0.54% |
| 2024 | November 1st | 24,304.35 | +0.40% | 79,724.12 | +0.42% |
| 2025 | October 21 | 25,868.60 | +0.10% | 84,426.34 | +0.07% |
How Did Mid-Cap and Small-Cap Stocks Perform?
Investors are also interested in mid-cap and small-cap stocks during Muhurat trading.
Performance of the broader market over the last 10 years
| Year | Nifty 50 | Nifty Midcap | Nifty Smallcap |
|---|---|---|---|
| 2016 | -0.1% | +0.5% | +0.9% |
| 2017 | -0.6% | -0.4% | -0.1% |
| 2018 | +0.7% | +0.8% | +0.8% |
| 2019 | +0.4% | +0.7% | +1.1% |
| 2020 | +0.5% | +0.5% | +0.8% |
| 2021 | +0.5% | +0.8% | +1.3% |
| 2022 | +0.9% | +0.5% | +0.9% |
| 2023 | +0.5% | +0.7% | +1.1% |
| 2024 | +0.4% | +0.7% | +1.0% |
| 2025 | +0.1% | +0.1% | +0.5% |
Three Important Trends in Muhurat Trading
Data from ‘Muhurat Trading’ sessions reveal more than just market gains or losses; they also highlight how investors participate during this unique session.
1. Significant participation from retail investors
As per NSE’s ‘Market Pulse’ report from November 2024, around 24.5 lakh (2.45 million) individual investors traded during the 2024 Muhurat Trading session. That’s a sharp 22.5% jump compared to the year before proving that this special session isn’t just played by big institutional investors anymore.
2. Substantial trading activity within a short timeframe
Although the Muhurat Trading session is much shorter than a standard trading day, it sees significant activity in the cash market. According to the NSE, the cash market turnover in 2024 reached ₹18,225 crore. This accounted for approximately 17% of the average daily turnover for the month of October, even though the session lasts for only about 16% of the duration of a regular trading day.
3. Investors often start with smaller amounts
Many investors prefer to begin their investments with smaller sums during the Muhurat Trading session rather than executing large trades. The NSE report indicates that the average trade size is smaller compared to regular trading days, which aligns with the high level of retail investor participation. Consequently, it is more practical to view this session as an opportunity to begin one’s investment journey, rather than as a chance to make quick profits.
Does Muhurat Trading Predict the Next Samvat Year’s Returns?
Investors are pleased when the Nifty closes higher on the day of ‘Muhurat Trading’. But does this momentum persist throughout the following year? Looking at historical data, this has not always been the case.
- In 2020, the market showed a strong surge following a positive start. The Nifty rose by 0.47% during the ‘Muhurat’ session, and went on to gain nearly 40% over the subsequent ‘Samvat’ year.
- The scenario was different in 2021. That year, the Nifty climbed 0.49% during ‘Muhurat Trading’, but fell by approximately 1% over the following ‘Samvat’ year.
- In 2017, despite a decline during the ‘Muhurat’ session where the Nifty closed 0.63% lower—the subsequent ‘Samvat’ year recorded a gain of about 4.5%.
- Following the gains in 2024, returns for the subsequent year were more modest. The Nifty rose by about 0.40% during the ‘Muhurat’ session, while it delivered a return of approximately 6% over the following ‘Samvat’ year.
- These examples do not point to a definitive pattern. Market movement during ‘Muhurat Trading’ reflects only a single day’s performance. Returns for the year ahead can be influenced by various factors, such as corporate earnings, interest rates, and broader economic conditions.
Practical Lessons for Investors During Muhurat Trading
Diwali gets everyone hyped about starting their stock portfolio, but jumping in blindly is a bad move. Keeping a few basic ground rules in mind during the session will save you from making hasty calls.
- Pick your stocks way before the market opens: Don’t wait for the bell to ring to figure out what to buy. Sit down earlier, look at a company’s actual business model, check their latest quarterly numbers, and put together a clear watchlist.
- Watch the buy-sell gap closely: In low-volume stocks, the gap between what sellers want and what buyers offer can be massive. Check this price spread first. If the rate looks inflated or weird, walk away—there’s no need to force a trade.
- Fix your amount first: If you just want to mark the festival by putting in a small sum, lock in that exact budget today. Whatever you do, don’t tap into your emergency fund or money meant for monthly family expenses.
- Have an actual reason to buy: Just because a stock is jumping during the 1-hour session doesn’t mean you should jump on board. Ask yourself why you want this specific business and how many years you’re actually holding it for.
- Write down why you took the trade: Log the stock name, the price you paid, and your core reason for buying. Months later, reading this back will tell you if you made a smart choice or just got swept up in the Diwali excitement.
Conclusion
Along with Diwali, ‘Muhurat Trading’ offers investors an opportunity for a fresh start in the market. Trends from previous years show that market movements on this day are not always the same. Therefore, base your investment decisions not just on the auspicious timing (Muhurat), but also on your own understanding and preparation. To sustain your presence in the market, making the right decisions, exercising patience, and maintaining discipline are far more important than any single day’s surge.
Frequently Asked Questions (FAQs)
What is Muhurat Trading?
Muhurat Trading is a special stock market trading session held on the day of Diwali, which investors view as an auspicious beginning.
Is Muhurat Trading open to all investors?
Yes, investors with an active trading account can participate in this session through their broker.
Can I buy stocks during Muhurat Trading?
Yes, you can buy and sell stocks during this session. Be sure to check the price and availability before placing an order.
Does Muhurat Trading guarantee profits?
No; stock prices can still fluctuate on this day. There is no guarantee of profit.
How long does Muhurat Trading last?
This session is shorter than a regular trading day. The specific date and time are announced by the exchange each year.
