Diwali Muhurat trading: Traders looking to profit from the stock market ahead of Diwali may want to consider investing in the Nifty and specific sectors, such as auto and consumer discretionary. According to a report by ET, a study conducted by Samco Securities reveals promising trends.
Diwali Muhurat trading
Historical Performance of Nifty
Over the past decade, the Nifty has shown positive gains on nine out of ten occasions during the period between Navaratri and Diwali Muhurat Trading Day. On average, the benchmark index has yielded a 2.1% return during this period.
Among sectors, the Nifty Auto index has consistently performed, recording gains in all ten years. The NSE’s Infrastructure index and BSE’s Consumer Discretionary index have also fared well during this time.
Auspicious Season for Investments
Samco Securities notes that people tend to make purchases of new clothes, automobiles, jewelry, and consumer durables during this auspicious month-long period. This not only benefits shopkeepers but also presents a prosperous opportunity for investors.
“This period is not only auspicious and profitable for the shopkeepers but also for the markets. It is one of the most prosperous periods for investors,” according to Samco.
Market Conditions for Diwali 2023
However, this year, the market has been relatively weak during this period. Since Navaratri began on October 15, the Nifty has experienced a 3.19% decline, and the Sensex has fallen by 3.4%. Muhurat trading is scheduled for November 12 this year, during which exchanges will remain open for one hour in the evening.
Diwali Muhurat trading: Indian markets have witnessed a challenging period with Sensex and Nifty recording the sixth straight day of losses. According to ET, investors have lost Rs 9.8 lakh crore since October due to the indices declining. The market downturn has been influenced by global factors, including the ongoing Israel-Hamas conflict and rising US treasury bond yields, adding to uncertainties.