Muhurat Trading 2026: A Beginner's Guide to Diwali's One-Hour Session

Every Diwali, India's stock exchanges open for a special one-hour session known as Muhurat trading. In 2026 it will be held on Sunday, 8 November, the day of Diwali Laxmi Pujan, marking the start of Samvat 2083. NSE fixed the date in its 2026 holiday circular and will announce the exact timings closer to the festival. Here is what beginners need to know.

What is Muhurat trading?

'Muhurat' means an auspicious time. The tradition dates back to 1957 on the BSE and to 1992 on the NSE. Many investors use the session to place a symbolic first trade of the new Samvat year, often a small purchase of a long-term holding, while active traders treat it as a short, thinly traded session that can move quickly.

Although it is brief, it is a real trading session. Orders are matched as on any other day, and the normal rules on margins, settlement and taxes apply.

Key dates for Diwali week 2026

A full trading day follows on Monday, and Tuesday is a holiday. Factor this into any plan to exit positions.

How the session works

The Muhurat session follows the structure of a normal trading day in compressed form: a block deal window, a pre-open session, about an hour of normal trading and a closing session. Last year the exchanges moved it to the afternoon for the first time. On 21 October 2025 the pre-open ran from 1:30 to 1:45 pm and normal trading from 1:45 to 2:45 pm. Earlier sessions were held in the evening, for example from 6:15 to 7:15 pm in 2021. The 2026 timings may differ, so wait for the official NSE and BSE circulars.

In recent years the session has covered equities, equity derivatives and other segments such as currency and commodity derivatives. Check the 2026 circular for the segments that will be open.

Do Muhurat trades settle normally?

Yes. Muhurat trades are treated like regular trades. Equity delivery trades settle under the normal T+1 cycle, and the exchanges will confirm the settlement date for the Sunday session in their circular. If you do not close intraday positions yourself, your broker squares them off as on any other day. Brokerage, STT and other charges apply as usual.

What history shows

Muhurat sessions have a mild positive bias. The Nifty 50 ended the session higher in each of the six years from 2020 to 2025, with gains ranging from 0.10% in 2025 to 0.88% in 2022. It has not always been green, though: the Nifty slipped 0.04% in 2016 and about 0.6% in 2017. The moves are small because volumes are thin and many participants trade symbolic quantities. Past Muhurat sessions tell you very little about how the following year will go.

Samvat 2082 in context

The mood this year is more cautious than last Diwali. The Nifty 50 closed the 2025 Muhurat session at 25,868.60; on 9 October 2026 it ended at 22,520.45, about 12.9% lower. The index had just snapped an eight-week losing streak, its longest in 25 years, as foreign investors sold Indian shares, crude oil stayed above $100, US bond yields surged and the rupee came close to a record low. A festive session does not change the forces driving the market.

A checklist for first-timers

• Confirm the timings. Wait for the NSE and BSE circulars, and check your broker's notice for any changes to order windows.
• Fund your account in advance. Add funds and check your margin before the weekend so a Sunday transfer delay does not catch you out.
• Use limit orders. Thin liquidity can mean wider spreads and sudden price jumps. A limit order caps the price you pay.
• Keep it small and simple. If you are new, avoid leverage and complex derivatives. A modest purchase of a stock or ETF you already intend to hold for the long term is in keeping with the tradition.
• Plan around the holiday. Monday is a full trading day and Tuesday is closed, so think about when you might need to exit.
• Ignore 'sure-shot' tips. Festive periods attract unsolicited stock tips on messaging apps and social media. Trade only through SEBI-registered brokers and do your own research.

Frequently asked questions

Is a Sunday session unusual?

Muhurat trading is held on Diwali Laxmi Pujan whatever the day of the week. In 2026 that falls on a Sunday, so the exchanges will open specially for the session.

Can I buy mutual funds during Muhurat trading?

Mutual fund orders follow their own cut-off times and business-day rules, so an order placed on Sunday is typically processed on the next business day. If you want exposure during the session itself, exchange-traded funds (ETFs) trade like shares.

Can NRIs take part?

Yes. NRIs can trade through their usual NRI trading and demat accounts, subject to the same rules as on any other trading day.