What is Muhurat Trading?
Muhurat Trading is a special one-hour stock market session on Diwali. Many Indian investors believe that buying stocks during this time brings good luck and prosperity for the coming year.
This tradition combines religious beliefs with investing. Families usually make their first stock purchases together on this day. Even though it feels ceremonial, all trades work exactly like regular stock market transactions.
Stock exchanges announce the exact timing each year to match the Diwali celebrations. The 1-hour trading window for Diwali 2024 was open from 6:00 to 7:00 PM IST on 1st November; however, for this year, it is scheduled on 21st October from 1:45 to 2:45 PM IST.
The session is short but meaningful. New investors usually start their investing journey on this auspicious day. Experienced investors add stocks to their portfolio, mixing tradition with their investment plans.
Muhurat Trading Timings 2025
Muhurat trading is on Tuesday, 21st Oct 2025. Here are the timings for this year’s Muhurat Trading.
| Session | Time (IST) & Date | What happens | 
| Pre-open | 1:30–1:45 PM | Price setting | 
| Main Trading |  1:45–2:45 PM | One-hour buying/selling | 
| Order changes |  Till 2:55 PM | Can modify orders | 
History of Muhurat Trading
This tradition began with Indian business families, especially in Gujarat and Rajasthan. They would open new account books on Diwali and pray to Goddess Lakshmi (the goddess of wealth) for business success.
The Bombay Stock Exchange officially started Muhurat Trading in 1957. What began as a religious ritual became a market tradition. Traders and investors would worship their account books, hoping for wealth in the new year.
In 1992, the National Stock Exchange also began this practice, making it common across India. Today, Muhurat Trading shows how Indian stock markets blend emotions and traditions with business.
Even now, brokers light lamps, share sweets, and make ceremonial purchases. While the Muhurat Trading window is considered auspicious, it is similar to the usual trading window in which prices move based on actual buying and selling.
This session combines religious sentiment with practical investing. It gives people a ceremonial start while allowing them to organise their investments at the beginning of the new year.
What Happens in Muhurat Trading?
The respective stock exchanges, BSE & NSE permit trading for a limited time period on Diwali. Unlike the other weekdays, the Muhurat trading window is open only for an hour at a pre-decided time. This session is typically divided into the following two parts.
Block Deal Session
In this case, two parties (Buyers & Sellers) agree to buy or sell a security at a fixed price and inform the stock exchange about the same.
Pre Open Session
Here, the stock exchange determines the equilibrium price which lasts for eight minutes. It’s the actual one-hour trading session which is similar to the regular market sessions
Call Auction Session
In this session, illiquid securities are traded. Securities are termed “illiquid” once they satisfy the criteria set by the stock exchange.
Closing Session
Here, investors and traders can place a market order at the closing price.
Who Can Benefit From Muhurat Trading?
This special session attracts different types of investors, each with their own reasons for participating during this culturally important time.
- New investors often make their first small stock purchase on this day. They see it as a lucky start to their investing journey while keeping the amount small and safe. 
- Long-term investors usually add to their existing stock holdings. They use their research and planned investment lists, treating this as another step in their ongoing investment strategy. 
- Traders look for short-term trading opportunities during this active hour. However, they need to be careful with position sizes since price movements can be unpredictable. 
- Families and joint accounts often invest together, making it both a religious ritual and a documented financial decision that involves multiple generations. 
- Business owners and professionals may start or adjust their investment portfolios before the new business year, helping them stay organized with their finances. 
- Individual investors use this time to review their current investments, re-evaluate their portfolio, and buy new ones based on their research. 
Things to Keep in Mind Before Indulging in Muhurat Trading
Even though people consider this session auspicious, it carries the same financial risks as regular trading. The religious significance doesn't change how the stock market works.
- Budget planning remains crucial: Decide beforehand how much money you're comfortable investing. A symbolic purchase shouldn't affect your emergency savings or monthly expenses. 
- Documentation helps: Write down what exactly you are looking for and why. This helps you track your decisions later and stay focused during the trading hour. 
- Company research matters: Look for companies with stable earnings and strong business models. Avoid investing in anything just because it's popular during the festival or based on rumours. 
- Patience with pricing can be beneficial: Initial price movements might seem attractive, but waiting for the market to stabilize after the opening can lead to better execution of trades. 
- Keep investments proportional: Make sure your Muhurat investments fit within your overall investment plan rather than becoming a major part of your portfolio. 
- Check liquidity: Some stocks trade less frequently than others. Stocks that don't trade often can be harder to sell later and may have wider price differences between buying and selling. 
- Record keeping: It involves noting what you bought and your reasons. Review these decisions later to see if they aligned with your broader financial goals. 
Benefits of Muhurat Trading
- Easy entry point for first-time investors to begin stock market participation with cultural significance attached to the milestone. 
- Muhurat Trading allows investors to revisit their investment portfolios, review their financial goals, and start the year with renewed focus. 
- Focused timing concentrates attention into one scheduled hour, which might help people act on investment plans, as this day holds auspicious sentiments.  
- Family participation encourages group investment decisions, making it a shared learning experience across family members. 
- Disciplined approach can develop when combined with proper budgeting, research, and planning, turning the ritual into meaningful financial action. 
Who Should Participate in Muhurat Trading?
- New investors who want to start with a symbolic trade within a predetermined budget would know the nitty-gritty of muhurat trading. 
- Experienced investors planning to add specific stocks or index funds from their research list can use this opportunity. 
- Families treating this as both a religious observance and documented financial planning may choose to participate. 
- Business professionals organizing their investments before the new business year for compliance and record-keeping purposes. 
- Portfolio reviewers looking to relook at current holdings and diversify their investments might use this session. 
- Active traders wanting to experience the essence of Muhurat trading. 
Tips for Investors During Muhurat Trading
- Verify final timings from official NSE and BSE announcements and plan your orders accordingly. 
- Consider using limit orders after the initial price-setting phase rather than buying immediately when trading opens. 
- Keep investment amounts reasonable compared to your total savings. Think of purchases as symbolic or small additions, not major investment moves. 
- Focus on well-researched stocks or diversified index funds rather than speculative investments. 
- Ensure your broker account, available funds, and trading permissions are active to prevent last-minute problems. 
- Document your investment rationale and review later to confirm these trades support your long-term financial goals. 
Conclusion
Muhurat trading is more than just symbolic; it’s a blend of tradition and optimism that kicks off a new financial year. Participating in this session is seen as auspicious, offering investors a culturally significant opportunity to begin fresh investments with positivity. Always verify final timings with your stock exchange before trading.