Muhurat Trading 2025: Everything You Need to Know before October 21

Diwali—the Festival of Lights—marks a time of prosperity, renewal, and new beginnings. Among the many traditions that accompany this auspicious day, one stands out in the world of finance: Muhurat Trading.

Every year, the NSE and BSE open the markets for a special one-hour trading session on Diwali day where investors make their first trade of the new year during this ‘shubh muhurat’ (auspicious time). It’s a symbolic gesture of wealth creation and optimism, blending faith with finance.

In this guide, we’ll cover everything you need to know about Muhurat Trading 2025, including its timings, history, significance, and key tips to make the most out of this special session.

What is Muhurat Trading?

Muhurat Trading is a special one-hour-long trading session conducted by Indian stock exchanges—BSE (Bombay Stock Exchange) and NSE (National Stock Exchange)—on Diwali, the festival of lights. It marks the beginning of the new financial year, known as Samvat, according to the Hindu calendar.

This tradition is deeply ingrained in Indian culture and symbolises an auspicious start to wealth creation and prosperity. Many investors, both seasoned and new, participate to make their first symbolic trade for good fortune and financial growth.

The Diwali Muhurat Trading time is typically announced by NSE and BSE a few days before the festival, usually between 6:00 PM and 7:15 PM, including pre-open and closing sessions. But this year it is different since the session will be conducted in the afternoon as per the schedule mentioned below in this article.

Muhurat Trading Timings 2025 for Capital Market (Equities) Trade

The complete trading timetable for equity markets during the Muhurat session is as follows:

Note: All trades executed during this session will lead to standard settlement obligations.

Muhurat Trading Timings 2025 for Futures & Options Trade

Here’s when Futures and Options (F&O) trading will take place on Diwali:

Muhurat Trading Timings 2025 for Currency Derivatives Trade

For those trading in currency derivatives, here’s the official schedule:

Muhurat Trading Timings 2025 for Commodity Derivatives Trade

Here’s the schedule for the commodity derivatives segment, including gold, silver, and energy contracts:

Muhurat Trading Timings 2025 for Corporate Bonds (T+1 Settlement)

Here’s the schedule for corporate bond trading with T+1 settlement during the Muhurat session:

History of Muhurat Trading

The tradition of Muhurat Trading began in 1957 on the BSE and was later adopted by the NSE in 1992.

Historically, Diwali marked the beginning of the new financial year for traditional business communities, especially among Marwari and Gujarati traders. Stockbrokers would perform “Chopda Pujan”, a ritual of worshipping account books, symbolising a prosperous year ahead.

In earlier times:

• Marwari traders preferred to sell shares, believing money should not enter the house on Diwali.

• Gujarati traders bought shares during Muhurat, considering it lucky to start new investments.

While these cultural nuances have evolved, the sentiment of positivity and prosperity around Muhurat Trading remains strong. Today, it’s more of a symbolic tradition, celebrated by traders and investors across India.

What Happens in Muhurat Trading?

The stock market Diwali Muhurat Trading session follows a structured schedule similar to a normal trading day, but in a shorter timeframe. Here’s what typically happens during the one-hour trading window:

During this period, market sentiment is usually bullish. Trading volumes are high, and the atmosphere—both physically on Dalal Street and digitally on online trading platforms—is festive and optimistic.

Who Can Benefit from Muhurat Trading? 

Muhurat Trading is open to everyone, from first-time investors to seasoned traders. However, the benefits vary based on experience and goals:

For New Investors

• It’s considered an auspicious time to start investing.

• You can begin your stock market journey by buying strong, long-term companies aligned with your financial goals.

• Even observing the market during this session offers valuable insights into market sentiment and behaviour.

For Experienced Traders

• Short-term traders may find profitable opportunities due to high trading volumes and momentum.

• Since many participants trade symbolically, skilled traders can use technical setups to capitalise on quick price moves.

For Long-Term Investors 

• Many investors use this time to add quality stocks to their portfolios, seeing it as a ritual of prosperity.

• Focus remains on value investing, not speculation.

Things to Keep in Mind Before Indulging in Muhurat Trading

While Muhurat Trading is an exciting and auspicious event, it’s important to approach it with clarity and discipline, and not emotion. Here are a few key things to remember before you place your trades during the Diwali Muhurat Trading session:

Treat It as a Symbolic Investment

Most traders and investors participate in Muhurat Trading for its cultural and symbolic value rather than short-term profits. It’s a great time to begin new investments in quality companies with strong fundamentals, not speculative bets.

Be Aware of Settlement Obligations

Any open positions at the end of the Muhurat Trading session will carry standard settlement obligations, just like regular market trades. Make sure your funds and margins are in order before participating.

Watch for Market Volatility

The Diwali stock market session usually lasts for just an hour and can be highly volatile due to limited trading time and festive enthusiasm. As a trader, keep a close eye on support and resistance levels to avoid impulsive trades and sudden losses.

Stick to the Fundamentals

Excitement and rumours often drive the market during Muhurat Trading. Avoid chasing trending stocks or speculative news. Focus on companies that have strong earnings, consistent performance, and sound business models that align with your investment plan and risk tolerance.

Choose Stocks with High Liquidity

If your goal is to take advantage of short-term price movements, select high-volume stocks. Liquidity guarantees a smoother order execution during the short window and helps you avoid price slippage.

Don’t Expect Guaranteed Returns

Though Diwali is considered auspicious, remember that market performance is based on fundamentals and broader economic conditions. A stock that performs well on Diwali might not continue its upward trend later. Base your trades on logic, not luck.

Conclusion

The Diwali Muhurat Trading session blends tradition with modern finance, symbolising hope, wealth, and positivity. Whether you trade or simply observe, it’s an excellent opportunity to reflect on your financial goals and start the new Samvat year with clarity and optimism.

Remember: While it’s an auspicious occasion, sound research and disciplined investing matter more than luck.

FAQs 

How does Muhurat Trading work?

Muhurat Trading is a special one-hour trading session held on Diwali, symbolising prosperity and good fortune for the year ahead. The session operates like a regular trading day — you can buy and sell shares — but it’s primarily seen as an auspicious time to make your first trade of the new financial year.

Is day trading allowed in Muhurat Trading?

Yes, day trading is allowed during Muhurat Trading time. However, since the session lasts for only about an hour, most traders prefer quick intraday moves or small ceremonial trades rather than full-fledged day trading strategies.

Is it good to buy in Muhurat Trading?

Many investors consider buying stocks during Diwali Muhurat Trading to be lucky and a way to start the new Samvat (Hindu financial year) on a positive note. While it’s largely symbolic, it can also be a good opportunity to invest in quality stocks for the long term.

What is the special trading session for Diwali?

The Diwali stock market session, known as Deepawali Muhurat Trading, is conducted by both NSE and BSE for about an hour in the evening. The Diwali Muhurat Trading time typically includes a pre-open session, normal trading session, and a closing session. The exact schedule is announced by the exchanges each year.

Can I sell my shares in Muhurat Trading?

Yes, you can buy and sell shares during Diwali Muhurat Trading, just like a regular market session. However, most participants prefer to buy rather than sell, as the session is seen as auspicious for new beginnings.

Is day trading pure luck? 

Not really. While timing and volatility play a role, day trading success depends on analysis, discipline, and risk management—not luck. Many traders use technical tools and price action to make informed decisions, even during short sessions like Muhurat Trading.