Muhurat trading as an annual ritual
What is Muhurat Trading?
Muhurat Trading is a special, one-hour trading session conducted by Indian stock exchanges to mark the auspicious occasion of Diwali — the festival of lights. The term “Muhurat” refers to an auspicious time in the Hindu calendar, believed to bring prosperity and good fortune.
Both the BSE and NSE hold this session every year, symbolically inaugurating the new Samvat year, the traditional Hindu financial year observed by many trading and investing communities, especially in Gujarat and Maharashtra
Historical Significance
The tradition dates back decades, rooted in the belief that starting the financial year’s trading during this auspicious window ensures wealth and success. Many traders and brokers (including their families) perform Lakshmi Puja (worship of the Goddess of Wealth) on the same evening and make token investments to mark the beginning of a prosperous year ahead.
Trading Details
- Duration: Usually a 1-hr evening session on Diwali day (timings announced by NSE/ BSE)
- Segments: Equity, F&O, and currency derivatives are available for trading.
- Settlement: Trades are settled as separate session — distinct from regular trading day.
- Participation: Both institutional and retail investors take part, though volumes are generally lighter and volatility can be higher due to festive sentiment.
Investor Sentiment & Market Behavior
- Investors often use the session to make symbolic “shubh” (auspicious) purchases of blue-chip /fundamentally strong stocks, marking start of Samvat, the new accounting year.
- Historically, major indices like Sensex and Nifty have shown modest gains in most Muhurat sessions, though this is not guaranteed.
Key Takeaways
- Symbolic and Auspicious start to the financial year rooted in tradition and faith.
- Often marks positive investor sentiment and optimism for the coming year.
- Good opportunity for long-term investors to make auspicious entries into quality stocks.
- Typically, short and ceremonial, not meant for large-scale trading or speculation.
Positive Foundations for Samvat 2082
- Analysts expect a recovery in corporate-earnings growth
- Domestic macro tailwinds: inflation is under control, a good monsoon helps rural demand, GST rate simplification and other policy supports are visible.
- Structural themes gaining traction: Consumption revival, infrastructure & power capex, financials, autos are pointed out as likely outperformers
Key Risks & Areas of Caution
- Mid-cap segment available at decent valuations / small-cap may face more consolidation and risk than large-caps
- External headwinds: Global trade policy risks (tariffs), geopolitical volatility, and foreign institutional investor (FII) outflows remain as potential drags
- While valuations look more comfortable now, the earnings recovery is expected to pick up gradually — meaning the upside may be gradual, not explosive.
Technical/Market Structure Snapshot
- The sentiment is shifting from “holding ground” to “building up” — not exuberant yet, but constructive — as one commentary described: “Not exploding with euphoria … but refusing to go down.”
Overall Summary for Samvat 2082
For investors and traders thinking of Muhurat Trading and the year ahead: Samvat 2082 appears to have the potential for moderate but meaningful upside, backed by improving fundamentals and attractive valuations — especially in large-cap and structural-theme stocks. At the same time, it’s a year for selectivity, not broad-based speculative euphoria, with caution advised in mid and small-cap areas.
Here are top sectoral themes that analysts are favouring for Samvat 2082, based on current commentary and brokerage research. These are ideas, not recommendations — you should always assess company-specific fundamentals, valuations, and your own risk tolerance.
Key Sectoral Themes
- Consumption / Domestic demand revival – Analysts expect a boost in consumption — aided by tax relief, festive demand, rural recovery, GST simplification. Of course, key risks include Slower rural recovery, inflation uptick, or global shock could dampen demand.
- Financials / Banks & NBFCs – With credit growth expected to pick up and valuation gap narrowing, big banks/NBFCs are considered well-poised. Key risks include Asset quality risk, interest rate risk, macro slowdown.
- Manufacturing / “Make in India” / Export-led / Capex cycle – Government push (PLI schemes etc.) + rising global orders = tailwinds for manufacturing / EMS / chemicals. Key risks include Input cost inflation, global demand slack, dependency on export markets.
- Power / Infrastructure / Renewable Energy – Infrastructure spend, clean energy transition and demand growth make these sectors an attractive bet. Key risks include Execution delays, regulatory setbacks, fuel/commodity cost risks.
- Technology / Digital / Structural themes – While some caution remains, digital infrastructure, AI, TMT are seen as medium-term growth stores. If you analyze the performance of the Dow Jones, these themes have emerged as key growth drivers and this can/will happen in India as well. Key risks include High valuations, competition, rapid cyclicality.
- Defense equipment’s/Shipbuilding themes – Unlike other years, this year has seen the emergence of this sector more than before. With ongoing geo-political skirmishes, this is an area where the Govt. has increased budget spends and will remain a focus area
How to Use These Ideas
- Selectivity is key: Many analysts opine that large-caps & structural themes look promising
- Time horizon matters: Some ideas are for 1–3-year timeframe.
- Valuation discipline: Themes may be strong, but valuations must make sense.
- Diversify across themes: Don’t bet only on one sector — mix consumption, financials, manufacturing, infrastructure, defense.
- Keep a watch on macro/market risks: Global headwinds, commodity inflation, interest rate changes can derail even good stories.
