Muhurat Trading 2025: What to Expect from the Markets This Diwali

16^th October 2025: It is the time of the year when the country is gripped by festive fever. Diwali is all about family gatherings, prolonged breaks, and celebrating togetherness. The stock markets are also closed for a couple of days (21st and 22nd October 2025) for the festivities.

As per the Indian traditions, the festival represents prosperity and financial abundance. A critical part of the Diwali celebration includes the Laxmi Puja, where people pray for a year-long financial freedom and happiness. Continuing this tradition, stock markets in India also hold a special Muhurat Trading. This traditional practice allows traders and investors to trade during the auspicious hour on the day of Diwali.

Muhurat Trading for Diwali 2025

The stock markets shall be open for a special trading session (called Muhurat Trading) from 1:45 PM to 2:45 PM, with trade modifications allowed until 2:55 PM. Investors can trade in equities, derivatives (including currencies), futures, and options during the period.

What to Expect on Muhurat Trading?

As the name suggests, it is merely indicative trading with no broader implications for market movements. In the past, the markets have been predominantly positive during the one-hour muhurat trading, with a notable highlight being the global financial crisis when the indices jumped by almost 6% during the trading session.

As the markets have rebounded in the past few weeks after the GST 2.0 rollout, this can be an excellent opportunity for new investors to enter the market, and for the seasoned ones to make some symbolic trades as a salutation to the festivities.

Why Muhurat Trading is Critical?

There is sentimental and cultural significance, as the entire five-day festival of Diwali is all about celebrating lights, wealth, and prosperity. For example, the Dhanteras festival is celebrated by buying gold and silver. Similarly, Muhurat trading is a cultural continuation of investing during the Diwali festival.

Summing Up

You can make a token or symbolic investment during Muhurat trading according to your beliefs. However, if you are a newcomer in the market, avoid putting a large amount in the trade, as the liquidity and trends of the market are often different from the general trend. Further, there have been circumstances when the market has moved negatively on Diwali day, so there is no guarantee of an upside movement.

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Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations