Muhurat Trading
A symbolic one-hour trading session held on Diwali to mark the start of the Hindu accounting year, Samvat.
How it is identified
Test: a special trading session is conducted by the exchanges on Diwali at a time announced in advance
Unit
qualitative
In depth
Muhurat trading is a tradition rather than a market mechanism: the session is a normal one in every technical respect, with real trades, real settlement and real tax consequences. Volumes are light and moves are typically small, and the widely repeated idea that buying during it brings good fortune is a cultural practice rather than an investment argument. Token purchases made during the session settle and are taxed exactly like any other. The exchanges announce the timing each year, and it is usually the only trading on an otherwise closed day.
Worked example
A token purchase of ten shares during the muhurat session settles on the next trading day, appears in the demat account and creates a capital gains position identical to any other purchase.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Muhurat Trading” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.