Diwali Muhurat Trading: Historical Trends Favor Positive Market Closing

The festival of Diwali holds significant cultural and religious value in India, but it also symbolizes a favorable start to the new financial year for investors in the stock market. An analysis of data from the last decade (2016 to 2025) indicates a consistent positive trend during special Muhurat trading sessions. Both the Bombay Stock Exchange's (BSE) Sensex and the National Stock Exchange's (NSE) Nifty 50 have closed in the green on eight out of ten occasions during this time.

Trading Schedule for 2026

This year, the NSE and BSE have scheduled their special Muhurat trading session on November 8, 2026, which falls on a Sunday, coinciding with the auspicious occasion of Diwali.

Long-Term Investment Perspective

Market analysts suggest that Muhurat trading is an ideal opportunity to begin investment journeys with a long-term view, rather than chasing short-term gains. Abhinav Tiwari, a senior research analyst at Bonanza, points out that due to India’s economic growth, increased infrastructure investment, and strong domestic demand, there remains a favorable outlook on sectors such as banking, financial services, capital goods, power transmission, defense, and select consumer stocks for the financial year 2083. Additionally, Sunny Agarwal, the head of fundamental research at SBI Securities, believes that the new financial year presents strong opportunities for asset creation in sectors like auto OEM and ancillary, capital goods and engineering (including defense and aerospace), BFSI, EMS, recycling, new-age platforms, pharma (CDMO), and consumption sectors (such as hotels and jewelry).

Positive Trends But Caution Advised

Historical data underscores that the day of Muhurat trading has traditionally been associated with positive sentiments in the Indian stock market. However, investors are advised to focus on long-term economic fundamentals and sectors recommended by experts, rather than relying solely on one day's performance when formulating their investment strategies.