Diwali Muhurat Trading 2025 — Date, timings & history

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Every Diwali, Dalal Street pauses the usual frenzy for a short, auspicious trading session known as Muhurat Trading — a symbolic ritual where investors place a token trade for good luck in the new financial year. If you’re planning to participate this year, here’s a neat guide to Muhurat Trading 2025 plus a quick look at how past Muhurat sessions have behaved so you can set realistic expectations.

When is Muhurat Trading 2025? (the facts)

Muhurat Trading for 2025 will be held on Tuesday, 21 October 2025 — the Diwali (Laxmi Pujan) day — when regular market hours are a holiday but exchanges open for the special session. The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have the Muhurat window in the afternoon: trades across equities, derivatives, and other permitted segments will follow the special timings announced for that day. Multiple market sources list the session running with the market open at 1:45 PM and closing at 2:45 PM, with trade modification cut-offs shortly after (check your broker for precise internal cut-offs).

What actually happens during Muhurat Trading?

Muhurat Trading is short and ceremonial. Unlike a full trading day, the session lasts roughly an hour: volumes are typically light, price moves are usually moderate, and the whole exercise is as much about tradition — marking the start of the Hindu new year (Samvat) — as it is about profit. Traders often treat the session as symbolic: buying a small quantity of a “lucky” stock, booking an index ETF, or placing a token order to mark the occasion. Institutional activity is reduced and retail participation tends to spike because of the cultural significance.

A quick history snapshot — what the data shows

Looking at past Muhurat sessions gives a useful pattern (not a guarantee):

• Mostly positive sessions. Over recent years Muhurat Trading has more often ended in gains than losses. One historical summary notes the BSE Sensex closed higher in 13 of the last 17 Muhurat sessions. That shows a strong positive bias historically, although each year is different.
• Low but positive average returns. When averaged across a decade, Muhurat sessions have produced sub-1% returns on average — some analyses put the decade-average around +0.5% (roughly 0.53% in one compilation). That underlines the fact that moves are usually modest rather than explosive.
• Few big swings — some exceptions. There have been standout years (for example, 2008 saw a large percentage rise during the Muhurat session), but those are exceptions rather than the rule. Volatility tends to be muted given the short duration and limited participation.

What this means for you (practical takeaways)

1. Treat Muhurat trades as symbolic, not strategic. Given the short window and historically modest returns, many investors place small, token positions rather than execute big tactical market calls.
2. Use trusted execution channels. If you plan to trade during the Muhurat window, confirm exact timings and modification/settlement rules with your broker — exchanges sometimes publish circulars with segment-specific cut-offs.
3. Watch liquidity. Expect lower volumes; price impact on less liquid stocks can be larger. If you want exposure, consider index ETF or broadly traded largecaps to avoid slippage.
4. Remember settlement rules. Trades executed during Muhurat session are bona fide trades with normal settlement obligations — they are not just “ceremonial” in the back-office sense. Check derivative/commodity rules separately if you plan to trade non-equity segments.

A short checklist before Muhurat Trading 2025

• Confirm the exact session time with your broker on 21 Oct 2025 (some circulars add small segment-level timing details).
• Decide a small, defined amount you’re comfortable trading (many keep it symbolic).
• Prefer liquid instruments (index ETF or top largecaps) if you want to avoid slippage.
• Keep in mind trade modification/cancellation deadlines that follow immediately after the session.

Final thought

Muhurat Trading is a lovely blend of culture and markets — a short pause where investors mark new beginnings while the exchanges briefly reopen for a compact trading session. Historically the session has delivered small positive returns more often than not, but it’s best approached with modest expectations: participate for the ritual and community spirit, not as a way to chase big intraday profits.