Gold, Muhurat trading and big business: The economics of Diwali and how they've changed

Trisha Mahajan's piece examines how Diwali, the Indian festival of lights, has shifted as an economic event, with gold purchases and Muhurat trading sessions, the one-hour auspicious window on the National Stock Exchange and Bombay Stock Exchange, as central features. The transmission mechanism runs through seasonal demand: Indian households and jewellers traditionally accumulate gold during Dhanteras and the days around Diwali, which can lift local premiums over international spot prices and influence import volumes flowing through India's gold market. Domestic equity markets and gold-linked instruments are most directly exposed, since Muhurat sessions concentrate retail and institutional flows into a short window, while jewellery retailers and gold-backed ETFs respond to changes in festival-period buying patterns. Traders should watch India's gold import data from the Ministry of Commerce and the monthly World Gold Council demand statistics for evidence of whether the festive uplift has strengthened or faded relative to prior years.

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