Muhurat Trading 2024: Will the markets benefit today? Here’s what 15 years of historical data suggest

Latest update:November 01, 2024 01:51 PM IST

Over the past 15 years, Muhurat trading sessions have often delivered positive returns, with indices closing in the green 12 out of 15 times.

Muhurat Trading 2024: Muhurat trading, the one-hour symbolic trading session on Diwali, occupies a pride of place in the Indian stock market. Traditionally, it is more than just a trading day; this is the time when market participants gain hope for prosperity in the coming year. Last Muhurat Trading 2024 to mark the beginning Samvat 2081 will take place today from 18:00 to 19:00. Here’s what data says about Indian stock market movements during the Muhurat trading session over the past 15 years.

Over the past 15 years, Muhurat trading sessions have often recorded positive returns, with indices closing in the green 12 times out of 15. This positive trend underscores the festive optimism that is often reflected during the session even if trading volumes remain below average.

In the last 15 years since 2009, only three muhurat trades – 2012, 2016 and 2017 – have seen a decline, with the Nifty falling marginally by 0.3 percent, 0.04 percent and 0.6 percent respectively.

In 2022, Nifty saw its highest jump of 0.88% since 2009 on Muhurat trading day.

Muhurat trading session 2023: a year of strong growth

The 2023 Muhurat trading session held on November 12 brought significant gains and ended as one of the strongest Muhurat sessions in recent years. The S&P BSE Sensex rose 355 points, or 0.55 per cent, to close at 65,259, while the Nifty50 index gained 100 points, or 0.52 per cent, to close at 19,525. Mid-cap and small-cap stocks also outperformed Results: BSE Midcap Index up 0.67% and BSE Smallcap Index up by 1.14%. The day’s achievements resulted in a collective increase in the market capitalization of all BSE-listed companies, adding an impressive ₹2.2 lakh crore to the total of ₹322.5 crore.

The results were broad-based with 28 out of 30 Sensex shares and 43 out of 50 Nifty shares closing higher. Shares of Coal India, UPL, Infosys and Eicher Motors, which were the leaders at the end of the day, rose noticeably. The robust performance of large-, mid- and small-cap stocks reflects strong investor sentiment and enthusiasm for the year ahead.

Historical trends of Muhurat trade

Muhurat trading has generally been in line with the positive market sentiment over the years. The index typically shows gains, reflecting the collective belief that Diwali is an auspicious time for wealth accumulation. Here are the results of some recent Muhurat trading sessions:

2022: Indices added about 1%, maintaining a bullish mood amid an uncertain global situation.

2021: Muhurat trade recorded a modest growth of 0.5%, driven by economic recovery from the pandemic.

2020: Markets reflected pandemic optimism, rising 0.47%.

2019: Despite global economic uncertainty, indices rose 0.37%.

2018: Another positive year with indices up 0.7%.

However, in some years there was a decrease. For example, the Sensex fell 0.6% in 2017, fell 0.04% in 2016 and fell 0.3% in 2012. These drops were often influenced by global headwinds or local economic issues that tempered Diwali optimism.

Nifty results for last 15 trading days of muhurat:

2023: 0.52%
2022: 0.88%
2021: 0.5%
2020: 0.47%
2019: 0.37%
2018: 0.7%
2017: (-) 0.6%
2016: (-) 0.04%
2015: 0.5%
2014: 0.2%
2013: 0.2%
2012: (-) 0.3%
2011: 0.2%
2010: 0.5%
2009: 0.02%

Symbolic value of Muhurat Trading and market sentiment

While Muhurat trading remains largely symbolic, it often serves as a reflection of investor optimism and market resilience. Its generally positive returns, even during difficult times, make it a unique annual event in Indian markets. For investors, this day not only signifies potential profits, but also starts the year on a prosperous note. Consistent Muhurat trading sessions over the years reinforce the idea that tradition coupled with a positive outlook often produces fruitful results.

The 2023 session is another confirmation of the Muhurat trend, with markets closing higher, reflecting the vibrant spirit of Diwali and continued market resilience.

Diwali Muhurat Trading 2024: Best Stock Picks

Here are the best Diwali stock ideas from top brokerages:

Sharekhan: Allied Blenders & Distillers, Bajaj Finserv, Bharti Airtel, Caplin Point Laboratories, Dabur, Dee Development, Hi-tech Pipes, HUDCO, L&T, Mastek, Powergrid, RIL, SBI, Suntech Realty and Tata Motors.

SBI Securities: Coal India, Macrotech Developers, Bharti Hexacom, Glaxosmithkline Pharma, Nippon Life AMC, Escorts Kubota, Chalet Hotels, Newgen Software, Titagarh Rail, PG Electroplast, Arvind Fashions and Kilburn Engineering.

Motilal Oswal: ICICI Bank, HCL Tech, L&T, Titan, Zomato, IPCA, Angel One, Five Star, Amber and Zen Tech.

Axial securities: Gravita India, Arvind Smart Spaces, Inox Wind, KPIT Technologies, HG Infra, AU Small Bank, Lupine, Indian Hotels and UNO Minda.

HDFC Securities: Bank of India, JK Lakshmi Cement, Jyothy Labs, L&T Finance, NALCO, Navin Fluorine, NCC, PNB Housing Finance, RIL and SBI as Diwali shares.

Kotak Securities: Aadhar Housing, Axis Bank, Fiem Industries, Gravita India, Godrej Agrovet, JB Chemicals, SH Kelkar and Zomato.

“Samvat 2081 could be a year of consolidation in the first few months, followed by the likely start of an uptrend after the next Union Budget 2025-26, which is likely to be presented in February 2025,” SBI Securities said in a report.

Sharekhan said that it is time to rebalance the portfolio and increase the exposure to large caps and at the same time reduce the exposure to small and mid caps and also be very selective while investing in small and micro caps as well as those closing companies whose valuations are at astronomical levels. with a small margin of safety.

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