Diwali 2024: Nifty fell in only 3 of the last 16 Muhurat trading sessions

Every Diwali, indian stock market We celebrate this occasion with a special one-hour evening trading session known as Muhurat trading. Seen as an auspicious time to invest, this tradition has become a symbol of prosperity; Investors often see this as an opportunity to bring wealth and success to their portfolios.

This year both BSE and NSE will conduct it. Muhurat trade On Friday, November 1, between 18.00-19.00. While markets remain closed throughout the day, this evening session allows investors to invest in tokens, following a long-standing tradition of trading during Diwali.

Historically, Muhurat trading sessions have frequently yielded positive returns even if trading volumes remain relatively low. Over the past 16 years, indices have closed in the green in 13 of the Muhurat trading sessions, revealing the positive trend this event often brings.

Last Muhurat Session

in 2023 diwali It was observed on November 12 and indices rose over half a percent, recording the second-best Muhurat trading gain in five years.

Indices delivered solid returns S&P BSE Sensex It closed at 65,259 with an increase of 355 points and an increase of 0.55 percent. Nifty50 It closed at 19,525, gaining 100 points and increasing by 0.52 percent. Mid-cap and small-cap stocks fared better, with the BSE Midcap index up 0.67 per cent and the BSE Smallcap index up 1.14 per cent.

Investors have witnessed a collective gain in market capitalization of all companies listed on BSE. ₹322.5 lakh, adding approx. ₹It is worth 2.2 lakh crore.

Standout performers in the 2023 Muhurat trading session included 28 out of 30 Sensex stocks and 43 out of 50 Nifty stocks. Notable winners included Coal India, UPL, infosysAnd Eicher Motorsclosed as top performers.

While Nifty IT increased by 0.72 percent, Nifty Metal and Realty indices increased by 0.6 percent, Nifty Bank also increased by 0.40 percent and closed at 43,996.65 points.

Muhurat Trade History

Over the years, Muhurat trading day has consistently reflected positive sentiments. For example, the indices increased by approximately one percent in 2022, 0.5 percent in 2021, 0.47 percent in 2020 and 0.37 percent in 2019, while they increased by 0.7 percent in 2018. Small decreases were also seen. As in 2017 (-0.6 percent), 2016 (-0.04 percent) and 2012 (-0.3 percent).

The most notable Muhurat trading session occurred during the global financial crisis on October 28, 2008; The indices increased by approximately 6 percent, recording the highest gain of the session so far.

Appearance

Despite the auspicious nature of muhurat trading, experts advise caution. Considering the limited liquidity on Muhurat trading day, investors in general, especially beginners, are advised to invest in tokens rather than larger transactions. It may also be valuable to consult a financial advisor, especially if you are unsure about which stocks to invest in. Experts generally encourage investors not to let festival sentiment grow. investment rather than making decisions, it is to use this opportunity for strategic, long-term gains.

Looking ahead, market analysts are optimistic that any decline in the market could be a buying opportunity. This year, Samvat 2081 begins with significant global economic changes. “Samvat 2081 marks an important year for the global economy, starting in the middle of the global interest rate cut cycle,” said Pranav Haridasan, MD and CEO of Axis Securities. He highlighted the US Federal Reserve’s recent 50 basis point interest rate cut, in contrast to the Reserve Bank of India’s (RBI) maintaining interest rates and shifting its stance to ‘neutral’ due to inflation concerns, and emphasized expectations for further cuts by the end of the year. . Haridasan added: “A interest rate reduction “Depending on the course of growth and inflation, one or two of them may occur in Samvat 2081.”

While Indian equities continue to present a strong long-term growth story, Haridasan emphasized that corporate earnings will be important in boosting market returns, given current valuations. “Selection of stocks with a reasonable price and balance of quality and growth will be critical to generate good returns in the coming year,” Samvat said, recommending a strategic approach to maximize returns in the evolving financial environment of 2081.

As Diwali approaches, Muhurat trading continues to embody the optimism and prosperity associated with the festival, allowing investors to engage the market with a tradition steeped in cultural significance and financial aspirations.

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms and not Mint. We recommend investors consult certified experts before making any investment decisions.