With Diwali approaching, the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), and the Multi Commodity Exchange of India (MCX) have announced Diwali Muhurat Trading sessions. In most regions, Diwali will be celebrated on October 31, 2024, while some will observe it on November 1 due to local customs.
Diwali Muhurat trading is a special live trading session held by Indian stock exchanges on Diwali day, lasting about an hour. It is seen as an auspicious time for investors and traders to make investments as they believe it marks the start of a new financial year.
According to the NSE notification, Diwali Muhurat trading will take place on Friday, November 1, 2024, this year. Both the NSE and the MCX will conduct their special trading sessions on this day.
As per the NSE notification, Muhurat trading will begin at 6 PM and end at 7 PM on November 1. The cutoff time for position limits and trade modifications is 7:10 PM. After this time, no new trades can be initiated, and existing trades cannot be modified, cancelled, or adjusted.
For trades conducted on November 1 and the previous day, the settlement will occur on November 4, 2024, at 8:30 AM.
The MCX will also have its Muhurat trading session from 6 PM to 7 PM on November 1. Additionally, there will be a pre-session from 5:45 PM to 5:59 PM and a client code modification session from 6 PM to 7:15 PM.
The practice of Diwali Muhurat trading has been around for several decades, with the BSE being one of the first to formalise it. This tradition is based on the belief that investments made during this period will lead to prosperity in the coming year. The NSE also recognised Muhurat trading as a special trading period after the BSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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