Diwali Muhurat Trading 2025: History, Timings & Significance

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16'Oct 2025 Published

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Muhurat Trading 2025
Home » Personal Finance » Festival Finance » Diwali Muhurat Trading 2025: History, Timings & Significance

Every year, as Diwali lights up homes across India, the stock market too glows for a special reason ie. Muhurat Trading. For one hour, markets open to honour an age-old practice that beautifully blends faith, prosperity, and financial awareness.

This session isn’t about chasing profits or market trends. It’s about celebrating the belief that new beginnings, when made with the right intent, can bring lasting success. Indian investors place their first symbolic trade as a gesture of gratitude and hope for the year ahead.

What Is Muhurat Trading?

The term “Muhurat” refers to an auspicious time. It is a one-hour trading session conducted by Indian stock exchanges annually on Diwali. 

Most families perform the Lakshmi Puja before trading, and seek the blessings of the goddess of wealth and prosperity. Investors take advantage of the time to initiate something new, right from purchasing shares to beginning their investment journey. 

Even long-term investors participate, not for profit, but to honour tradition and express gratitude for the upcoming year. Family members often come together to make their first trade as a collective, rather than a business move.

Muhurat Trading Timings 2025

In previous years, Muhurat Trading took place in the evening (around 6:00–7:00 pm). However, for 2025, the exchanges have shifted it to afternoon hours. The following is the Muhurat Trading Schedule for NSE and BSE:

Session / EventTime
Muhurat Trading (main window)1:45 pm – 2:45 pm
Pre-open session1:30 pm – 1:45 pm
Block Deal session1:15 pm – 1:30 pm
Trade Modification Cut-off1:45 pm – 3:15 pm

The normal stock market remains closed on Diwali (21st Oct, 2025); only this Muhurat trading session is available. All trades executed in this session will be settled in the same way as usual trades, i.e., they carry normal settlement obligations.  

What Happens At the Time of Muhurat Trading?

India’s Muhut trading session mirrors a regular trading day, but for a short timeframe:

  1. Block Deal Session: Large investors execute bulk trades at pre-agreed prices and then report to the exchange for transparency.
  2. Pre-Open Session: Buy and sell orders are collected to determine opening prices before the actual trading begins.
  3. Normal Market Session: The main trading window where investors make symbolic trades in equities and ETFs to mark a prosperous start.
  4. Call Auction Session: Low-traded shares are auctioned individually to ensure fair price discovery.
  5. Closing Session: Traders review and confirm transactions before settlement.

History of Muhurat Trading

The tradition of Muhurat Trading dates back several decades, long before online trading existed. In earlier times, traders in Gujarat and Rajasthan treated Diwali as the start of a new financial year.  They used to close their old account books (bahi-khatas) and begin new ones after performing the Lakshmi Puja, hoping it would bring them blessings of prosperity and success.

The broking community perform Chopda Pujan, a ritual of worshipping books of accounts as a sign of gratitude.
Traditions varied – Marwari traders sold shares during Diwali, while Gujarati traders bought them, symbolising the welcoming of wealth.

The Bombay Stock Exchange (BSE) introduced formal Muhurat Trading in 1957, followed by the National Stock Exchange (NSE) in 1992.

Know More About- Difference Between NSE and BSE

Things to keep in mind to participate in Mahurat trading

  1. Plan Your Trades: The window is short, so decide your trades in advance.
  2. Watch Liquidity and Volatility: Prices may move sharply due to lower volumes.
  3. Ensure Adequate Funds: Maintain required margins to avoid order rejections.
  4. Review Afterwards: Once the session ends, assess your positions and plan for the year ahead.

Final Thought

Muhurat Trading is a moment when the financial world and tradition meet. It began as a ritual of gratitude but now represents faith in growth, discipline, and knowledge. Every trade placed during this hour reflects India’s timeless belief that prosperity grows when intent and action are met with sincerity.

Muhurat Trading | FAQs

1. What is Muhurat Trading?

A one-hour special trading session on Diwali marking the start of the new financial year as per the Hindu calendar.

2. When will Muhurat Trading be held in 2025?

On October 21, 2025, from 1:45 PM to 2:45 PM, with a pre-open session at 1:30 PM.

3. Why is it significant?

It symbolises optimism, gratitude, and the merging of culture with modern investing.

4. Which segments are open?

Equity, derivatives, and commodities markets — though participation is mostly in equities.

5. Can new investors participate?

Yes. Anyone with a trading and demat account can take part.

6. Can NRIs join?

Absolutely. Registered NRIs can trade during the session through their Indian accounts.

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

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