Diwali Muhurat Trading: BSE, NSE Announce Timing Of One-Hour Session On Nov. 1

The timing for the one-hour special 'muhurat' trading session on the occasion of Diwali has been fixed as 6:00 p.m. to 7:00 p.m., the BSE and the National Stock Exchange of India announced on Sunday.

The Muhurat trading will mark the start of the Hindu calendar year of Samvat 2081. The first day of the year is considered auspicious for financial growth by several shareholders.

As per the circular issued by the exchanges, the pre-opening session will be conducted from 5:45 p.m. to 6:00 p.m. The block deal window will remain open from 5:30 p.m. to 5:45 p.m.

The periodic call auction period will be from 6:05 p.m. to 6:50 p.m. There will be random closure of order entry session in the last 10 minutes, the BSE noted.

The closing session will last from 7:00 p.m. to 7:10 p.m., followed by the post-closing period from 7:10 p.m. to 7:20 p.m., the circular added.

The regular functioning of the stock market will remain closed on Nov. 1 to mark the occasion of Diwali, one of the country's biggest festivals. The trading of equities, currency derivatives, equity futures and options, and securities lending and borrowing will take place only during the one-hour special time slot.

Conducted annually on Diwali, the muhurat trading usually witnesses high volatility. The investors, mostly in the retail segment, are driven by a customary practice rather than profitability, market analysts said.

"Since Muhurat trading happens in a very short span, it witnesses volatility. Several investors tend to buy on that day as a customary practice. However, institutional participation will be very limited to negligible. There will be no participation from foreign portfolio investors," said Kranthi Bathini, Equity Strategist at WealthMills Securities Pvt.