Muhurat trading is a special, short one-hour session held by Indian exchanges on Diwali, traditionally regarded as an auspicious window for initiating investments, and the Economic Times guide sets out its date, timing, and settlement rules for investors. The session's market impact is largely sentiment-driven and symbolic rather than a function of macro transmission, since the brief window typically carries thin volumes and a narrow participant base concentrated in retail and institutional sentiment plays. Liquidity is the key channel here: with reduced order book depth, price moves can be exaggerated relative to normal sessions, and settlement mechanics determine whether positions taken during the window are carried into the following trading day. The most exposed names are typically large-cap Nifty and Sensex constituents, where index-linked and derivatives activity concentrates even during shortened trading. Traders should watch the first settlement cycle and the post-Muhurat opening session for signs of whether the symbolic buying translates into sustained follow-through in index futures and volumes.
Muhurat trading 2026 today: Date, time, settlement rules, and other key things investors should know
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