Muhurat Trading is a cherished ritual that uniquely blends Hindu tradition with modern finance, marking the commencement of the new financial year, Samvat 2082, in the Indian stock market. For one special hour on Diwali, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) open for a symbolic trading session considered highly auspicious for new investments. This year, the session sees a notable shift, moving to the afternoon on Tuesday, 21 October 2025, presenting investors with a renewed opportunity to begin their journey into the markets with an eye on long-term prosperity.
This guide provides a comprehensive overview of Muhurat Trading 2025, the Diwali market holidays, and a sound strategy for investors looking to participate in this auspicious event.
Table of Contents
- What is Muhurat Trading?
- Diwali 2025 Market Holidays & Muhurat Trading Timings
- Historical Performance and Investor Psychology
- A Prudent Strategy for Muhurat Trading
- Conclusion: A Symbolic Start to a Prosperous Year
- Frequently Asked Questions (FAQs)
Muhurat Trading is a special, one-hour trading session held annually on the auspicious day of Diwali to mark the start of the Hindu New Year. The term 'Muhurat' translates to 'auspicious time,' and this session is deeply rooted in the belief that trading during this specific window will bring wealth and good fortune throughout the coming year.
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A Time-Honoured Tradition: This tradition dates back to 1957 at the BSE and was later adopted by the NSE. For many traditional trading communities, Diwali also symbolises the closing of old account books and the opening of new ones (Chopda Pujan), a custom extended to the stock market through this ritual.
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Symbolic Yet Real: While the session is ceremonial, the trades executed are real and carry the same T+1 settlement obligations as any regular market day. Many investors use this opportunity to place a token buy order in a quality stock as a positive start to their investment journey for the new Samvat.
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Broad Participation: All segments, including equities, Futures & Options (F&O), currency, and commodity derivatives, are open for trading during this one-hour window.
For Diwali 2025, investors should note the following market holidays and the unique timing for the Muhurat Trading session.
Market Holidays
The stock markets (NSE and BSE) will remain closed for normal trading on:
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Tuesday, 21 October 2025: For Diwali (Laxmi Pujan).
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Wednesday, 22 October 2025: For Diwali (Balipratipada).
Muhurat Trading 2025 Schedule
The only trading activity on Tuesday, 21 October 2025, will be the special one-hour Muhurat session. This year marks a significant change, with the session moving from its traditional evening slot to the afternoon.
The schedule for the capital market segment is as follows:
| Session |
Time (IST) |
| Pre-open Session |
1:30 PM – 1:45 PM |
| Normal Market Session |
1:45 PM – 2:45 PM |
| Closing Session |
Extends until approximately 3:05 PM |
This shift to the afternoon is primarily intended to simplify operations, align with new clearing frameworks, and improve accessibility for NRIs and global investors by overlapping with working hours in Europe and the Middle East.
Want to know when the markets will remain closed this festive season? Check the Stock Market Holidays October 2025 list to plan your trading activities efficiently.
Historically, the Muhurat Trading session is overwhelmingly associated with positive sentiment, reinforcing the tradition’s optimistic outlook. However, it is more about initiating long-term investments rather than seeking short-term speculative gains.
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A Positive Trend: The BSE Sensex has closed higher in 14 of the last 18 Muhurat sessions, highlighting a prevailing bullish sentiment. Over the past decade, the Nifty 50 has delivered an average return of approximately +0.53% during the one-hour session.
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Sentiment-Driven: The session is often driven more by emotion and tradition than by market fundamentals. This optimism can sometimes boost market morale, which may carry over into subsequent trading sessions.
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Low Volume, High Volatility: The session typically sees thin trading volumes, which can lead to higher-than-usual volatility. This makes it riskier for speculative day trading.
While the festive spirit encourages buying, all investments should be based on a sound, long-term strategy.
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Focus on Blue-Chip Stocks: Given the ceremonial nature, this is an excellent time to buy fundamentally strong, large-cap companies. Consider market leaders with a proven track record that you intend to hold for the long term.
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Start a Disciplined SIP: A powerful way to honour the spirit of Muhurat Trading is to initiate a Systematic Investment Plan (SIP) in a quality mutual fund. This symbolises a disciplined start to wealth creation for Samvat 2082.
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Use Limit Orders: Due to potential volatility in a low-volume session, it is safer to use limit orders rather than market orders. This helps protect you from buying a stock at an unexpectedly high price.
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Avoid Speculation: The short duration and thin liquidity make day trading during this session particularly risky. The focus should remain on making token investments for the long term.
Want to refine your festive investment picks? Use the Stock Screener to identify fundamentally strong companies suited for long-term growth this Diwali.
Muhurat Trading 2025 on 21 October is more than a brief market opening; it is a cultural tradition that symbolises optimism and the journey toward wealth creation. While the market's performance in this single hour will not dictate returns for the entire year, it serves as an excellent time for investors to make a conscious, disciplined investment in an asset they believe in. By approaching this session with a clear strategy and focusing on quality, you can ensure your Muhurat trade truly lights the lamp of financial prosperity for Samvat 2082.
There’s an informative video by Jagran Business on YouTube explaining why the share market remains closed on Diwali and what makes Muhurat Trading 2025 special—worth watching to understand its timing and cultural significance.
1. What is the exact date and time for Muhurat Trading 2025?
Muhurat Trading 2025 will be held on Tuesday, 21 October 2025. The main trading session for equities will be from 1:45 PM to 2:45 PM IST.
2. What are the stock market holidays for Diwali 2025?
The stock market will be closed on Tuesday, 21 October (Diwali - Laxmi Pujan) and Wednesday, 22 October (Diwali - Balipratipada). The only trading on 21 October will be during the one-hour Muhurat session.
3. Why has the Muhurat Trading time shifted to the afternoon?
The shift to the afternoon is a major change from the traditional evening slot. It is primarily for operational efficiency, aligning with modern clearing frameworks, and potentially increasing participation from global investors.
4. Can I trade in Futures & Options (F&O) during this session?
Yes, Muhurat Trading is a fully functional session where trading is permitted across all segments, including equities, F&O, currency, and commodity derivatives.
5. Is it a good time to buy stocks for the long term?
Yes, many investors view Muhurat Trading as an auspicious time to make token purchases of high-quality, blue-chip stocks or to start SIPs for long-term holding.
6. What are the risks of trading during the Muhurat session?
The primary risks are higher volatility and lower liquidity due to the session's short duration. This can lead to larger price swings, making it important for investors to be cautious and preferably use limit orders.