As Diwali approaches, the Indian stock market gears up for one of its most symbolic and auspicious events — Muhurat Trading. This century-old tradition, deeply rooted in cultural and financial significance, marks the beginning of the Hindu New Year and is seen by many investors as a time of prosperity, optimism, and fresh beginnings. The Economic Times recently clarified the trading schedule for this festive season, outlining key market holidays and the much-anticipated Muhurat session.
Key Market Holidays Around Diwali
Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed on Tuesday, October 21, in observance of Diwali Laxmi Puja. The following day, Wednesday, October 22, will also be a holiday on account of Balipratipada, the day after Diwali that celebrates the return of King Bali to Earth, as per Hindu mythology.
This two-day closure aligns with the national celebration of the festival of lights, when businesses, families, and investors across India perform rituals dedicated to Goddess Lakshmi — the deity of wealth and prosperity. Traditionally, the markets pause their regular trading activities during this period to honor these customs.
The Special Muhurat Trading Session
Although the markets will be closed for regular trading on October 21, investors will still get to participate in the special Muhurat Trading session, scheduled for 1:45 PM to 2:45 PM on that day.
This one-hour window is not just symbolic — it’s considered auspicious and financially favorable. Many traders and investors believe that buying stocks during this period brings good luck and long-term gains. Over time, this belief has evolved into a respected financial ritual, with the exchanges facilitating limited but active trading across all segments, including:
- Equities and derivatives
- Currency and commodity segments
- Securities lending and borrowing (SLB)
The participation during Muhurat Trading is often vibrant, with family offices, retail investors, and institutions making small but significant trades as a gesture of optimism for the coming year.
Significance of Muhurat Trading in Indian Finance
The tradition of Muhurat Trading dates back to the early days of the Bombay Stock Exchange. It blends India’s spiritual heritage with its modern financial culture, symbolizing the fusion of faith and fiscal discipline. Investors often use this opportunity to make the first trade of the new financial year, usually choosing stable or promising stocks for long-term growth.
For brokers and traders, the event also serves as a chance to connect with clients, distribute sweets, and celebrate the festive spirit together — a reminder that markets, while driven by numbers, are also shaped by human sentiment and belief.
Regular Trading Resumes
After the brief Muhurat session and the subsequent Balipratipada holiday, normal trading operations will resume on Thursday, October 23. The markets will return to their standard schedule, continuing to reflect post-Diwali momentum as investors reassess portfolios and anticipate year-end performance trends.
Outlook for Investors
With Diwali 2025 approaching, analysts expect the markets to remain buoyant, driven by festive spending, improving corporate earnings, and strong domestic participation. Muhurat Trading, though symbolic, often sets a positive tone for the remainder of the year.
For investors, it serves as both a moment of reflection and renewal — a reminder that the act of investing, like Diwali itself, celebrates light, hope, and prosperity.
- Market closed: October 21 (Diwali Laxmi Puja) and October 22 (Balipratipada)
- Muhurat Trading session: October 21, 1:45 PM – 2:45 PM
- Markets reopen: October 23 (Thursday)
As the diyas light up homes across India, the glow of Muhurat Trading will once again symbolize new beginnings — not just in faith, but in finance.
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