Muhurat Trading is a common ritual in India, marking a one-hour period on the day of Diwali for investors to invest in shares. The National Stock Exchange (NSE) encourages investors to deal only with registered intermediaries and avoid dealing in unregulated products.
The stock market is meant for long-term wealth creation, and an unpleasant experience discourages investors from entering the market. Retail investors should avoid trading derivatives due to the high risk involved. Muhurat Trading is a common ritual followed by traders, with the stock exchange specifying the time every year. According to beliefs, trading during this one hour has a better chance of earning wealth and gaining prosperity throughout the year.
Typically, this period occurs during the evening of Diwali, and most people prefer buying stocks as a token of Goddess Lakshmi. This practice is unique to the Indian stock markets and signifies shared financial aspirations.
