Muhurat Trading 2025 on October 21 - Everything You Should Know

The Festival of Lights – Diwali is an auspicious time according to the Hindu calendar. It symbolises the victory of light over darkness, knowledge over ignorance, and good over evil.

Like any other religious festival, Diwali is surrounded by a plethora of beliefs, customs, and traditions. One such tradition is Muhurat trading.

Today, we will discuss this tradition and cover everything you need to know about Muhurat Trading time.

What is Muhurat Trading?

To understand Muhurat trading, let’s look at the term Muhurat. The word ‘Muhurat’ means an auspicious time. In Hindu customs, Muhurat refers to a time when planets are aligned favourably to ensure positive results. 

Muhurat Trading is a familiar ritual followed by the traders in India. This is a one-hour period considered auspicious on the day of Diwali for investing in shares. The stock exchange specifies the time of Muhurat trading every year.

According to this belief, people who trade during this one hour have a better chance of earning wealth and gaining prosperity throughout the year. Typically, this period falls on the evening of Diwali, and most people prefer to buy stocks as a token of appreciation to the Goddess Lakshmi. This is unique to the Indian stock markets only.

Muhurat Trading Timings 2025 for Capital Market (Equities) Trade

Timings of Muhurat Trading for Capital Markets (Equities) are as follows: 

Source - NSE

History of Muhurat Trading

When did Muhurat Trading start? 

Traditionally, stockbrokers started their new year from the day of Diwali. Hence, they would open new settlement accounts for their clients on Diwali during the auspicious time – the Muhurat.

The Bombay Stock Exchange (BSE) initiated Muhurat Trading in 1957, and the National Stock Exchange (NSE) has continued to conduct it since 1992.

The broking community would also perform Chopda Pujan or worship their books of accounts on Diwali. Many beliefs were associated with Muhurat trading.

The primary reason was that most Marwari traders/investors sold stocks during the Muhurat, as they believed that money should not enter the house on Diwali. In contrast, Gujarati traders/investors purchased shares during this period. Although there is no data to support this, in current times, it no longer holds.

Today, Muhurat trading has become more of a symbolic gesture than a cultural one because people believe the period to be auspicious. Most Hindu investors perform Lakshmi Pujan (praying to the Goddess Lakshmi) and then purchase shares in strong companies that can generate good returns in the long run.

What Happens in Muhurat Trading?

On Diwali, both the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange) permit trading for a limited period. Typically, the session is divided into the following parts:

1. Block Deal Session – where two parties agree to buy/sell a security at a fixed price and inform the stock exchange about it
2. Pre-Open Session – where the stock exchange determines the equilibrium price (usually around eight minutes)
3. Normal Market Session – the one-hour session where most trading takes place
4. Call Auction Session – where illiquid securities are traded. Security is termed illiquid if it satisfies the criteria set by the exchange.
5. Closing Session – where traders/investors can place a market order at the closing price

Who Can Benefit from Muhurat Trading?

The Muhurat trading Session is a good time to buy or sell stocks, as trading volumes are high. Additionally, the market is usually bullish, as the festive spirit focused on prosperity and wealth drives people to be optimistic about the economy and the stock market. Hence, it is an ideal time for both experienced and new investors and traders to benefit from the Muhurat trading session.

For people who believe in auspicious planetary alignments, Diwali is celebrated as a festival that brings wealth and prosperity. Hence, if you have never invested in stocks, then Diwali can be a good day to begin.

Look for high-quality companies and purchase stocks with a long-term horizon that aligns with your investment plan. However, if you plan to enter the stock trading domain, it might be prudent to observe the markets during Mahurat Trading and conduct some paper trading to get a feel for the process. Markets are known to be volatile since the trading window is open for only one hour. Hence, being watchful as a new trader is recommended.

Experienced day traders can benefit from this session since most investors/traders will buy and/or sell stocks as a gesture to acknowledge the auspiciousness of the day.

The focus might not be on profitability as much as it might be on the gesture. Hence, seasoned day traders can make good profits by taking positions after careful consideration. This year has been challenging for the economy, as the pandemic has impacted businesses and livelihoods alike.

While many experts hope for a successful Muhurat trading Session in 2025, it is advisable to keep a level head and make trading decisions with a clear mind.

Things to Keep in Mind Before Indulging in Muhurat Trading

Here are some key aspects to consider before you start buying or selling stocks during Diwali day trading time (Muhurat Trading Timings).

• Most traders and investors consider this period to be auspicious for making investments.
• All open positions at the end of the trading session will result in settlement obligations. 
• Muhurat trading session will be held on 21 October 2025.
• Traders must closely monitor the resistance and support levels. During Muhurat trading Sessions, it has been observed that the markets can be volatile with no specific direction. Hence, as a day trader, keeping the resistance and support levels at the centre of your trading decisions will help you make better trading decisions.
• Investors must ensure that they stick with the fundamentals of a company before investing in its stock for the long term. The Muhurat trading session is usually filled with a lot of excitement, and rumours can spread fast. Stick with the basics and invest in sync with your investment plan and risk tolerance.
• If you plan to profit from the volatility, ensure that you choose stocks with high trading volumes, as the trading window is only one hour long.
• Investing during this period does not guarantee returns. Even if the stock performs well on Diwali, its future performance will depend on its fundamentals and macroeconomic factors. Invest smartly.

Happy investing and a pleased Diwali!