What is Muhurat Trading 2025? The ‘Auspicious Hour’ Tradition Since 1957

October 20, 2025 – If you are an experienced investor or have been following the stock markets for some time, you might have noticed that there is a Diwali tradition where an hour is dedicated to ‘Muhurat Trading’. The markets are open for this ceremonious hour, and traders can put their trades as an ode to Goddess Laxmi on the auspicious occasion of Diwali. This year, the Muhurat Trading will be on Tuesday, October 21, from 1:45 PM to 2:45 PM, with a pre-open window from 1:30 PM to 1:45 PM.

You might be amused to learn that the tradition has been going along on the BSE since 1957, as the country marks the arrival of the new year (Samvat), and it represents a blend of culture, belief, optimism, and prosperity.

Origins and History

The practice of Muhurat Trading began in 1957, when the Bombay Stock Exchange introduced a special Diwali trading session to mark the start of the new year according to the traditional Hindu calendar. The National Stock Exchange adopted the tradition after its formation in the early 1990s, ensuring continuity in India’s modern, electronic markets.

In the early days, traders would gather on the exchange floor dressed in festive attire, perform “Chopda Pujan”-the worship of account books—and then commence trading to seek blessings for prosperity. The word “muhurat” means an auspicious or favourable moment in Sanskrit, symbolising a time when success and good fortune are believed to align.

What Happens and Why It Matters

It is worth noting that the trading on the day is not entirely ceremonial, as the normal settlement rules apply for the given hour. Investors across the country can use this session to place their first trades of the financial year and can invest in sectors, companies, or stocks of their choice. It is considered a token of faith and good luck.

Although participation is largely symbolic, it also reflects the sentiment of optimism in the Indian markets. Historically, indices have tended to close higher during this session, driven by festive enthusiasm, fresh buying, and overall market positivity. Still, experts remind investors that while the hour is auspicious, the usual risks of trading remain unchanged.

Takeaways for Investors

For seasoned investors, this period is a time to renew confidence, rebalance or diversify the portfolio and make a small but symbolic investment. More than profits or losses, this hour is a representation of gratitude and hope and a belief that financial discipline and devotion can go a long way.

Muhurat Trading is an excellent example of how tradition continues to find meaning in modern finance. It purely depends on the individual investor as to how this hour is perceived. More than cultural or religious factors, this hour remains an excellent reminder of celebrating faith, prosperity and new beginnings in India’s financial calendar.