Leading stock exchanges BSE and NSE will conduct a one-hour special muhurat trading session on Monday, marking the beginning of a new Samvat 2079 — the Hindu calendar year that starts on Diwali.
The symbolic trading session would be held between 1815 hrs and 1915 hours, the stock exchanges said in separate circulars. It is believed that trading during the ‘muhurat’ or auspicious hour brings prosperity and financial growth for the stakeholders. “Diwali is considered to be the ideal time to start anything new. The market sentiment is quite positive, with a majority of buying orders across segments. Investors are said to benefit from trading during this session all through the year,” Puneet Maheshwari, Director at Upstox, said.
Since the trading window is only open for an hour, markets are known to be volatile. Therefore, new traders should be watchful. The focus might not be on profitability as much as it might be on the gesture, he added. Trading would take place across various segments like equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB) in the same time slot.
“India is a land of unique traditions. Even in the stock market, we have a tradition that is unique to us Muhurat Trading,” Narayan Gangadhar, Chief Executive Officer at Angel One Ltd, said. Kanika Agarrwal, Co-founder, Upside AI, said although 11 of the last 15 mahurat sessions have closed in the green so mahurat can be a good day for traders. Perhaps there is a case for “hope arbitrage” where you can go long early in the session and close out positions at the end of the trade.
Overall, Indian equities have outperformed global markets significantly in Samvat 2078 and the outperformance is expected to continue in Samvat 2079, driven by strong recovery in the Indian economy and domestic liquidity, offsetting FPI (Foreign Portfolio Investors) outflows, Manish Jeloka, Co-head of Products & Solutions, Sanctum Wealth, said. However, investors need to keep in mind that a slowdown in the global economy due to tightening liquidity conditions could lead to bouts of volatility like that witnessed in Samvat 2078, he added.
“Samvat 2079 is likely to be like Diwali. There will be celebration along with loud busting of crackers. Ukraine, US Fed Rate, Oil, Inflation and Zero Covid policy of China will continue to bust,” Nilesh Shah, Group President and MD at Kotak Mahindra Asset Management Company, said. Banks, capital goods, manufacturing are likely to outperform the market in Samvat 2079. Also, tech and pharma will provide interesting opportunities on a bottom up basis in the correction, he added. The exchanges will remain closed on October 26, on the occasion of Diwali Balipratipada.
Pingback: Soothe Healthcare raises Rs 175 crore fresh round of funding