On Diwali, the tradition of Muhurat trading in the Indian stock market brings together investing and celebration. During this special session, investors buy and sell shares as the beginning of a new Samvat is considered auspicious. But does the market’s positive momentum during Muhurat trading continue in the sessions that follow? Historical data offers an interesting perspective. The Nifty 50 and Sensex have closed higher in most Muhurat trading sessions over the years, although the gains have generally been modest. In some years, both indices have also ended the session in the red.
Let us look at when Muhurat trading will take place in 2026 and how the Nifty and Sensex have performed over the past 20 years.
What’s Happening?
Muhurat trading is a special stock market session held on Diwali. In 2026, it will take place on Sunday, 8 November. In the equity market, the pre-open session will run from 2:05 pm to 2:20 pm, followed by the normal trading session from 2:20 pm onwards. Trading in CAS stocks will continue until 3:15 pm and in non-CAS stocks until 3:30 pm. The closing auction session is scheduled from 3:20 pm to 3:35 pm. Meanwhile, F&O trading will end at 3:40 pm, while currency and commodity trading will close at 3:30 pm.
- Pre-Open Session: 2:05 pm to 2:20 pm
- Normal Session: 2:20 pm to 3:30 pm
- Closing Auction Session (CAS): 3:15 pm to 3:35 pm
- F&O Segment: 2:20 pm to 3:40 pm
- Commodity Segment: 2:20 pm to 3:40 pm
A special trading session will also be held on the MCX on the same day. On the commodity exchange, the special session will run from 2:05 pm to 2:19 pm, followed by the trading session from 2:20 pm to 3:30 pm. The client code modification session is scheduled from 2:20 pm to 3:45 pm. For investors, this limited-duration session marks the beginning of a new Samvat.
Performance of Nifty and Sensex Over 20 Years
Across the 20 Muhurat trading sessions held between 2006 and 2025, the Nifty 50 recorded gains in 14 sessions and declines in 6. This means the market closed higher more often during this period. The strongest performance came in 2008, when the Nifty 50 rose 6.35% and the Sensex gained 5.85%. On the other hand, 2017 was the weakest year, with both indices closing lower by 0.63% and 0.59%, respectively.
However, in most sessions, the price movement remained limited to within 1%. These figures show that the chances of the market closing higher during Muhurat trading have historically been greater. However, the performance of a single session cannot be used to predict market returns for the full year or the returns investors may earn.
How Many Times Did the Market Close with Gains in the Past 10 Years?
According to Anand Rathi, between 2016 and 2025, both the Nifty and Sensex closed higher in 8 out of 10 Muhurat trading sessions. Both indices declined in 2016 and 2017, while the following eight sessions, from 2018 to 2025, ended with gains. The strongest performance during this period came in 2022, when both indices recorded an identical gain of 0.87%. In 2017, meanwhile, the Nifty fell 0.63% and the Sensex declined 0.59%.
Over this 10-year period, the average return per session was 0.31% for the Nifty and 0.34% for the Sensex. In 2025, the gains were relatively modest. The Nifty closed 0.10% higher at 25,868.60, while the Sensex gained 0.07% to close at 84,426.34.
What Does This Mean for Investors?
Muhurat trading can be seen as an auspicious beginning to the investment journey, but buying shares solely because of the occasion is not a sound investment strategy. According to Business Today, the gains or losses recorded in a single session cannot reliably indicate how the market will perform over the next month, six months or an entire year. A separate assessment of market conditions and performance is needed to understand the broader trend.
Investment decisions should be based on a company’s business, fundamentals, valuation, one’s risk-taking capacity and investment horizon. Diversification, asset allocation and regular investing also play an important role in building a portfolio.
What’s Next?
Muhurat trading in 2026 will take place on 8 November. However, historical data does not guarantee that gains recorded during this special session will continue into the new Samvat. Over the long term, market performance is influenced by several factors, including corporate earnings, interest rates, inflation, valuations, domestic and global economic conditions, foreign investor flows and geopolitical developments.
Therefore, investors can treat Muhurat trading as an auspicious beginning or an opportunity to review their portfolios. However, building wealth over the long term depends more on the quality of investments, appropriate asset allocation, diversification and disciplined investing than on the market’s performance during a single session.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The companies mentioned are cited as examples within the context of market developments. Investors are advised to conduct their own due diligence and consult their financial advisor before making any investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
