The Diwali effect ..

For Indians world over, Diwali is the festival of lights and wealth. No doubt. It’s a busy holiday shopping season. It also marks the beginning of the new fiscal year for many businesses in India. The whole nation celebrates the festival of lights with their families, with some flying off to distant lands on exotic vacations. But, there is one particular community that would still go to work in India – Stock investors.They go and make token purchases to mark the beginning of their trading season. All brokers in India arrange special trading session called ‘Muhurat trading’.

Muhurat Trading is a symbolic ritual which has been performed for years. The word muhurat essentially means auspicious. An auspicious time band is fixed and trading is carried out during this period. After worshipping Ganesha and Lakshmi, investors make token purchases during the session. Muhurat trading in the stock market happens for about an hour on Diwali day,usually, in the evening. . As Diwali marks the beginning of the New Year, it is believed that a positive start on this day brings in wealth and prosperity throughout the year.

Statistics show that the Indian stock market gets cracking during the Diwali festival. Though stock prices do not always move up before Diwali, the market has always recorded some gains on muharat trading session. Volumes on the Muhurat day have been rising every year over the last few years. The Muhurat session of 2008 saw NSE register a turnover of Rs 1,557 crore.This vaulted to Rs 3,806 crore in 2009. Last year’s Muhurat trade was a record with a turnover of Rs 4,200 crore and traded quantity of 2,390 lakh shares, with participation both by foreign investors and domestic institutions, though retail investors still traded the most volumes. Foreign institutional investors, believed to be absent in Muhurat sessions, actually did a turnover of around Rs 650 crore on the day. The Muhurat session of 2010 also saw the Sensex hit its all-time closing high of 21,004 points.

The lesson: Use dips ahead of Diwali to buy stocks. The post-Diwali rally can be used to book some quick profits.

However, in world stock markets, October and November are two of the most feared months. These two months have recorded the biggest upsets in world stock markets. It is the month in which the falls of Black Monday, Black Tuesday and Black Thursday occurred.

Well, I don’t want talk about great market falls now.

If you are a newbie who believes in Goddess Lakshmi,Get ready to welcome her. This is the right time . Diwali is dedicated to Goddess Lakhsmi, the Goddess of wisdom and wealth.Cascades of gold coins flowing from her hand suggests the wealth that may be in store for those who worship her. Gold embroidered red clothes suggests aggressiveness, boldness and prosperity.

Jump start your investing season – Positively.

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2 Responses to “The Diwali effect ..”

Anonymous

October 28, 2010 at 11:48 am

k.jagadeesan

June 22, 2015 at 1:06 am

These dates are very useful for taking short term investment decisions.

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