Is the stock market open on Diwali 2024? Here's all you need to know

This is an ideal opportunity for all the seasoned investors to add new stocks to their portfolios or boost their investments in stocks they already own

This year, the festival of Diwali is all set to begin on October 29, 2024, with the Dhanteras celebration across the country. This will be the official bank holiday in several cities across the country. However, people are still confused about whether the stock market will remain open or be closed on Tuesday.

 

According to the latest BSE and NSE list of stock market holidays, the market will remain open on Tuesday, October 29, 2024, for Dhanteras. The stock market will remain shut until November 1, 2024. The market will operate normally for all the trading in equities, equity derivatives, SLB, currency, and commodities markets on Tuesday.

 

 

The auspicious Diwali festival will begin with Dhanteras on Tuesday when people worship Dhanvantari. According to Hindu scriptures, Dhanvantari emerged during Samudra Manthana holding Amrita (a nectar bestowing immortality) in one hand and sacred text about Ayurveda in the other end. Dhanvantari, the physician of the Devas, is considered an avatar of Vishnu.

What is Muhurat Trading?

Muhurat Trading takes place on Laxmi Puja during Diwali as this is an auspicious time to begin new endeavours which include investing in the stock market. Investors and traders believe that buying during the muhurat period brings prosperity and good fortune. On Diwali, traders sometimes create new settlement accounts. 

Significance of Muhurat Trading

The Muhurat trading holds special significance as it provides investors with the opportunity to begin their investment journey during this auspicious day. Goddess Laxmi is traditionally considered the Goddess of weather and traders which is believed to be auspicious marking the beginning of the new year with blessings. 

 

This is an ideal opportunity for several investors to add new stocks into their portfolios to increase their investments in stocks they already own. It is an excellent opportunity for seasoned investors to broaden their portfolios by introducing new stocks or expanding their current positions.

What takes place in Muhurat Trading?

On Diwali, both stock exchanges (NSE and BSE) allow traders to trade for a limited period. This session is divided into the following parts:

Block Deal Session – During this session, two parties agree to buy or sell a security at a certain price and inform the stock exchange about it.

Pre-Open Session – In this session, the stock exchange determines the equilibrium price (generally it is eight minutes).

Normal Market Session – The one-hour session where most trading takes place.

Call Auction Session – This is a session where illiquid securities are traded. A security is called illiquid if it meets the stock exchange criteria.

Closing Session – The closing session is when traders/investors place market order at the closing price.