Diwali has always held a special place in the hearts of Indian investors, and Muhurat Trading captures this festive spirit within the stock market. This special one-hour session, held annually on Diwali, marks the auspicious start of the new financial year as per the Hindu calendar. Traditionally, it reflects optimism, positive sentiment, and the belief that new beginnings bring opportunities for growth and wealth creation.
Last year, the markets closed in green during Muhurat Trading, and this year, multiple triggers suggest the trend may continue.
Let’s explore how markets have behaved on this special day and what could drive sentiment this time.
Muhurat Trading 2025 Date and Timing
Muhurat Trading, the special Diwali session on India’s stock exchanges, NSE and BSE, will be held on October 21, 2025, from 1:45 PM to 2:45 PM (13:45 hours to 14:45 hours). This one-hour session marks the start of the Hindu financial year, known as Samvat.
Additionally, the schedule includes a pre-open session from 1:30 PM to 1:45 PM and post-close modifications until 2:55 PM.
Trading during this session will cover multiple segments, including equities (cash and F&O), currency and commodity derivatives, as well as securities lending and borrowing (SLB), all within the same time slot.
Muhurat Trading is usually marked by low volumes but strong positive sentiment. However, this year, the shift from the traditional evening slot to the afternoon may allow more investors and traders to participate, especially those who previously found it difficult due to festive evening commitments.
Why Participate in Muhurat Trading
Muhurat Trading is considered an auspicious occasion that symbolises wealth and prosperity. Over the years, participation has grown steadily, making it not just a cultural ritual but also a significant market event.
Even though the session lasts only an hour, investor participation remains high. The cash market turnover during Muhurat Trading reflects this growing enthusiasm.
Except for a minor dip in 2022, turnover in the cash market segment has consistently risen. From Rs 9,522.83 crore in 2020, it nearly doubled to Rs 18,224.98 crore in 2024. This steady rise highlights growing investor interest, a trend likely to continue this year as well.
Muhurat Trading’s Last 10-Year Performance
In the past decade, eight out of ten Muhurat Trading sessions have ended in positive territory, giving an 80% chance of gains during this special hour. On average, these sessions have delivered returns of around 0.53%.
In four of those eight positive sessions, the Nifty rose more than 0.50%, while on three occasions, it gained over 0.40%. Going by this trend, if market sentiment remains upbeat, the Nifty 50, currently around 25,323, could see a move of about 100 to 125 points.
Looking over a longer 15-year period, Nifty has given negative returns only three times, further supporting the positive bias often seen during Muhurat Trading.
Muhurat Trading 2025: What’s Special This Time
Muhurat Trading 2025 is shaping up to be particularly significant. Historically, the festive season often brings market gains, and this year, investors also have a GST rate cut boost, the first since GST was introduced. This move, announced just before Navratri and Diwali, aims to boost local consumption and offset the impact of Trump’s tariff pressures.
Additionally, as reported by NDTV, India is expected to witness its biggest-ever festive business season this Diwali, with total trade likely to cross Rs 5 lakh crore, according to the Confederation of All India Traders (CAIT). CAIT General Secretary and BJP MP Praveen Khandelwal described this Diwali as the largest ‘economic fair’ in India since Independence.
This combination of historical trends, GST benefits, and record festive trade makes Muhurat Trading 2025 especially noteworthy for investors and traders.
FIIs Selling, But With an Exception This Time
Over the past decade, Foreign Portfolio Investors (FPIs) have shown mixed activity during Diwali, turning net buyers in five years and net sellers in the other five. However, as of October 15, 2025, FIIs are showing positive numbers.
Interestingly, FII selling pressure has reduced compared to the heavy offloading seen in the previous three months. During the first 15 days of July, August, and September, FIIs sold Rs 11,778 crore, Rs 24,191 crore, and Rs 10,512 crore respectively. In contrast, by mid-October, selling stood at just Rs 1,893 crore.
While foreign investors remained net sellers over the past quarter, this slowdown hints at improving sentiment in the Indian market during the festive season and could soon turn into net inflows. Moreover, sustained domestic institutional investor (DII) buying continues to support the market amid external challenges such as tariffs.
What’s Next?
Over the past decade, Muhurat Trading has mostly seen Nifty50 closing in the green, a trend that continues even when extended to the last 15 years. This year, market sentiment appears firmly bullish. Historical data, strong participation in the special session, the GST 2.0 boost, easing FII selling, and nearly double cash market turnover are all pointing towards near-term optimism.
Moreover, as the second-quarter results of FY26 unfold, they will play a key role in determining whether this momentum sustains. With festive demand peaking, policy support strengthening, and market confidence returning, investors are likely to witness an encouraging start to the Samvat year.
With that, may this festive season bring prosperity, growth, and rewarding opportunities for all investors. Wishing everyone a Happy and Prosperous Diwali!
*The article is for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
