Diwali Stock Market Holiday 2024: NSE & BSE Closure and Muhurat Trading Timings Explained

Diwali, one of India’s most significant festivals, brings unique traditions even to the stock market, where the ceremonial Muhurat Trading session takes place annually. For 2024, both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will operate on October 31 but will observe a holiday on November 1 in observance of Diwali's festive rituals. This special occasion, celebrated on November 1 this year, holds immense significance for traders who participate in the symbolic Muhurat Trading session, believed to usher in prosperity for the upcoming financial year.

According to the exchange notification, trading will remain open for all regular transactions on October 31, and investors are encouraged to complete any major transactions before the Diwali holiday on November 1. The NSE notification confirms that the ceremonial Muhurat Trading, which is traditionally a limited trading period, will be available on the evening of November 1 between 5:36 pm and 6:16 pm. This time slot aligns with the auspicious Diwali Amavasya tithi, a favorable period for Lakshmi Puja, honoring Goddess Lakshmi, the deity of wealth.

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The practice of Muhurat Trading on Diwali has deep cultural roots on Dalal Street. It is more than a symbolic gesture; for generations, it has represented the blessing of financial prosperity and success under the auspices of the Hindu goddess of wealth. Investors and traders often participate enthusiastically in this session, viewing it as a propitious start to the new financial year.

The Muhurat Trading session, while brief, includes several essential segments that follow a specified schedule. Here are the exact timings for the Muhurat session:

• Pre-Open Session: 5:30 pm
• Normal Market Session: 5:45 pm to 6:45 pm
• Block Deal Session: 5:45 pm to 6:00 pm
• Special Pre-open for IPO and Relisted Securities: 5:30 pm
• Closing Session: 7:10 pm

These sessions allow traders to engage in a range of transactions, from normal market orders to block deals, providing a ceremonial close to the year’s trading.

In keeping with tradition, this period sees positive investor sentiment and is often marked by a slight uptick in trading volume, as many view it as an auspicious start to the upcoming year. Additionally, Muhurat Trading fosters a sense of community among traders, who celebrate the session as a time-honored part of Diwali.

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Investors planning their trades around the Diwali period should remember that while markets are closed on November 1 except for this brief session, they will operate as usual before and after the holiday. The Diwali Muhurat session, though ceremonial, allows traders to carry forward a cultural legacy while looking forward to potential financial growth.

Reference: MoneyControl