- Summary
- Muhurat Trading is a special Diwali stock market session rooted in Indian business traditions, open to investors with active Demat and Trading accounts.
- Muhurat Trading session for 2026 starts from 2:20 PM to 3:40 PM on 8 November, with a pre-opening session from 2:05 PM to 02:20 PM.
- The BSE introduced Muhurat Trading in 1957, followed by the NSE in 1992.
- Mutual fund orders and SIPs do not follow Muhurat Trading session timings and work as per the fund house’s working days and NAV rules.
What is Muhurat Trading?
Muhurat trading is a special, symbolic 1-hour trading session that is held by the major stock exchanges in India, the National Stock Exchange (NSE)and the Bombay Stock Exchange (BSE), on the day of Diwali.
Here, the term “Muhurat” means an auspicious time. According to Hindu customs, this time session is believed to bring wealth, prosperity and financial good fortune.
Why Does Muhurat Trading Happen?
In India, Muhurat Trading take place for the following reasons:
- It marks the beginning of the Hindu New Year, known as Vikram Samvat.
- Tradition and astrology hold that trading or buying equities during this auspicious window, aligned with Lakshmi Pujan, invites wealth and fortune for the coming year.
- It follows the tradition of starting new business activities on an auspicious day.
- It allows investors to make symbolic purchases and begin the new Samvat with investment activity.
Historical Background
Muhurat trading began at the BSE in 1957 as part of the Diwali trading tradition.
The tradition is linked to Gujarati and Marwari business communities, which traditionally open new account books on Diwali through a ritual called Chopda Pujan.
The NSE adopted Muhurat trading in 1992, extending the tradition to another major Indian stock exchange.
Today, the BSE and NSE hold a special trading session on Diwali, allowing investors to buy and sell shares at an auspicious time.
Who Can Participate in Muhurat Trading?
Any retail investor, institutional investor or trader with an active Demat and Trading account can participate in the Muhurat Trading session. Non-resident indians (NRIs) can also participate if they meet the applicable account and trading requirements.
Participation is entirely open to the public and no special permissions are required beyond standard market access.
Muhurat Trading & Mutual Funds
Muhurat Trading is mainly a stock market tradition. But still, mutual fund investors can choose Diwali to start investing. However, they must note that mutual fund transactions follow different rules from stock trading, as the units are generally not traded on exchanges like shares, except ETFs and certain close-ended funds.
Investors can place orders through their chosen investment platform, broker or AMC, but the order may be processed on the next business day if Diwali is a market holiday for the mutual funds.
What Happens to New Orders and SIPs Placed During Muhurat Trading and Diwali?
The new stock market orders placed during Muhurat Trading are processed during the special session. The orders that are successfully matched result in executed trades, which are subject to the applicable settlement rules.
Here is what an investor should know regarding new stock orders:
- During Muhurat Trading: Investors can place buy and sell orders during the live session. The orders are executed when they match with the available orders at current market prices.
- After Market Orders (AMOs): Investors can place AMOs in advance through their brokers. These orders may be forwarded to the exchange for the Muhurat session, depending on the timings and order rules of the broker.
- Settlement Rules: The trades executed during Muhurat Trading follow a T+1 settlement cycle for equity trades. This means settlement usually takes place on the next trading day.
In the case of SIPs and Mutual Fund Orders:
- Mutual Fund SIPs: If an SIP instalment falls on Diwali, the fund house generally processes it on the next business day, depending on its rules.
- New Mutual Fund Orders: The orders placed on Diwali may be processed on the next business day, with NAV determined under applicable mutual fund rules.
- No Special NAV: The mutual funds do not offer a Muhurat trading session or special NAV. The applicable NAV depends on transaction processing and fund realisation rules.
What Actually Matters for Mutual Fund Investors?
Selecting a suitable mutual fund scheme that aligns with the mutual fund investors’ financial goals should be given more importance compared to the date or timing of the investment.
Here are certain factors they should consider before investing during Diwali:
- Financial Goals: Picking a mutual fund that aligns with the goals, whether they are saving for retirement, education or a home.
- Risk Appetite: Selecting a scheme based on how much risk they can afford and tolerate. Equity funds can fluctuate significantly in the short term.
- Investment Horizon: Matching the scheme to the investment period. The equity-oriented funds generally suit longer-term goals, while there are specific fund categories to serve different needs.
- Regular Investing: Investing consistently through an SIP if it suits their budget and goals. Investment must not be simply made because it is Muhurat Trading.
- Review Your Investments: Tracking portfolio periodically and checking whether the scheme still match their financial goals and risk tolerance.
Disclaimer: Diwali can be a meaningful time to begin investing. But mutual fund returns depend on market performance and are not guaranteed.
Final Thoughts
Muhurat Trading combines the festive excitement of Diwali and stock market investments. As investors buy their first share during this session as a yearly ritual, there might be some who prefer watching the market activities from the sidelines.
But one thing to keep in mind is that whether you participate or skip the session, your financial decisions should rest on research rather than following auspicious timing, as it does not guarantee success.
After all, good fortune is welcome, but a well-researched investment plan does most of the work.
FAQs
Yes, you can submit mutual fund orders through your investment platform, but they follow mutual fund processing schedules and NAV rules, not exchange trading hours.
The applicable NAV depends on the transaction’s acceptance, the fund’s business-day schedule and when the money becomes available for utilisation, under SEBI’s rules.
Yes, Indian stock markets historically tend to close in the green during Muhurat Trading, though there is no guarantee of positive returns
No special Muhurat Trading cut-off applies to regular mutual funds. Since 8 November 2026 is a non-business day, regular mutual fund transactions are generally processed on the next applicable business day.
You can start an SIP around Muhurat trading. But it offers no special financial benefit over starting on any other working day, though it can serve as a meaningful cultural or psychological milestone.
