Besides just lighting the lamps and exchanging sweets, Diwali is the time when the stock market is open for a special, one-hour Muhurat Trading session. The event, deeply rooted in Indian culture and tradition, is thought to be a call for Goddess Lakshmi's blessings for a fruitful year, attracting investors and traders looking for a "shubh shuruaat" on Dalal Street.
But did Nifty really bring Lakshmi home?
Before you go crazy with your trading screens this Diwali and jump into trades, here is a little reality check for you: Nifty's performance during these much-anticipated Muhurat Trading sessions over the last 10 years…
Muhurat Trading day returns: The last decade at a glance
- Nifty gave the green signal to Diwali Muhurat Trading with a gain of 0.5% in 2015.
- 2016 put a spanner in the works: the "patakha" didn't burst, and Nifty dropped -0.16%, leaving portfolios as empty as the packets after the crackers.
- 2017 saw demonetisation wiping away the Diwali lights and Nifty going down by -0.62%.
- Diwali sparkle was back in 2018 with a "Diwali Dhamaka" giving a rise of 0.64%.
- The session wasn't fantastic in 2019 but still closed positive at 0.37%.
- Muhurat trading in 2020 and 2021 produced similar results, with Nifty gaining approximately half a percentage point in both years, showing a pandemic-resistant trend.
- 2022 is one of the most exhilarating years as Nifty climbed 0.87%, igniting the market with optimism.
- Investors were not forgotten in 2023 as they received an increase of 0.5%.
- In 2024, the party went on with a gain of 0.4%, thus keeping the tradition alive.
Overall, Nifty has given positive returns on Dhanteras in 8 out of the last 10 years. Still, the average gains are around 0.3-0.4%. Therefore, even though huge wealth was not created overnight, the ritual of trading could be considered as a success.
So why do people trade on this day?
The reason is sentiment! To most people, Muhurat Trading is not about making huge profits but rather about symbolically marking the day as an auspicious beginning. One is allowed to feel the good vibes through small token investments, which will become the motif for the next financial year.
Muhurat Trading 2025: When to join in?
Muhurat Trading will be on the spotlight this year on October 21, from 1:45 to 2:45 pm. Whether you are planning on making a token purchase or merely observing the session from the sidelines, the whole event serves as a reminder that, in the spirit of Diwali, being optimistic and upholding the tradition is what truly move markets.
