Muhurat Trading 2026: Date, Time, Significance, History and How It Works

Muhurat Trading is an annual Diwali market event during which investors can buy and sell securities through NSE and BSE.

The word “Muhurat” refers to an auspicious time in Hindu tradition. Many people consider Diwali an auspicious time to begin something new. Following this tradition, Indian stock exchanges organise a special trading session every year on Diwali.

For many traders and investors, Muhurat Trading is also a way to welcome the new Samvat year and begin a positive financial year.

Why Is Muhurat Trading Important?

The significance of Muhurat Trading can be explained in terms of Hindu customs since the new year in the financial calendar starts in this session of trading. For many investors, this trading session is a symbol of starting the new financial year with positive wishes. The celebration of Diwali is also connected with Goddess Laxmi, who is believed to be a symbol of richness and prosperity. Over the years, this practice has turned into a tradition for various investors and business people.

Muhurat Trading 2026: Date and Timings

Muhurat Trading 2026 will be held on Sunday, November 8, 2026, coinciding with Diwali Laxmi Pujan.

The stock exchanges conduct this special session with separate timings for different market segments. Investors can check the NSE market timings and the BSE trading information for exchange-specific announcements.

All timings mentioned below are in Indian Standard Time (IST).

Muhurat Trading 2026: Equity Market Schedule

The pre-open order-entry period has two stages. During the first stage, investors can enter, modify and cancel the market and limit orders. During the second stage, only limit orders can be entered, modified or cancelled.

The system may randomly close the order-entry period during its final two minutes.

Muhurat Trading Timings as per market Segment 

Different market segments follow different trading schedules during the special session.

For equity F&O, the pre-open session will take place from 2:05 PM to 2:20 PM. Regular trading will follow from 2:20 PM to 3:40 PM. The exchange will also provide a separate window for trade modifications.

For corporate bonds, the first session will allow investors to place, confirm, modify and cancel trades. The T+1 settlement window will be available for trade confirmation, modification and cancellation.

Investors should check the NSE exchange for complete details of all session timings, including special pre-open and illiquid security sessions.

How Muhurat Trading Became a Diwali Tradition 

1. 1957

• During Diwali, many Indian traders follow customs such as performing Chopda Pujan, beginning a new accounting cycle and making auspicious investments. 

2. 1957

• BSE gave Muhurat Trading an official place in its calendar by organising a dedicated session during Diwali.

3. 1992

• The National Stock Exchange also became part of this tradition by conducting a special trading session on Diwali. 

4. 1990s

• Before the 1990s, stock market trading largely took place through physical trading. With the introduction of electronic trading, the process gradually moved online, allowing investors to trade digitally. 

If you look at the last 10 years, most Muhurat sessions have ended in the green. Except the year 2016 and 2017, and every other year delivered positive returns. Apart from these years the other years have given positive closings.

How Does Muhurat Trading Work?

From placing orders to buying and selling shares the process remains familiar to regular market participants. Like a regular trading day, Muhurat Trading also has different stages. It begins with the pre-open session, followed by normal trading, closing auction and post-close activities.

1. Pre-open Session: Investors can place, modify or cancel eligible orders.

2. Order Matching: The exchange matches buy and sell orders.

3. Normal Trading Session: Investors can buy and sell eligible shares and other securities.

4. Closing Auction: Eligible securities go through the exchange’s closing auction process.

5. Post-close Session: The exchange carries out the remaining activities scheduled for the session.

How Muhurat Trading is Different from Regular Trading?

Regular Trading and Muhurat Trading serve the same basic purpose of buying and selling securities through stock exchanges. However, they differ in their trading hours, schedules and the significance attached to the occasion. 

Here are the key differences:

Why can market volatility increase during this session?

Muhurat Trading is a one-hour session, which means participation and liquidity are significantly lower than on a regular trading day. In such thin volumes, even relatively small orders can move prices more sharply than usual. This is further compounded by traders squaring off positions and rebalancing portfolios ahead of the new accounting year, as well as overnight global cues being absorbed within a compressed window. The resulting swings may appear exaggerated, but they are largely a function of the short session and limited liquidity rather than any underlying market stress. 

How to Participate in Muhurat Trading 2026

To participate in muhurat trading you must have a demat and trading account. Here are some steps to participate in muhurat trading. 

1. Choose Stocks After Research: Before choosing any stock first do you research to know the company’s fundamentals. Read the company’s quarterly reports. After this select the stock you want to buy.

2. Add Funds to Your Account: To add funds in your demat account. Ensure you have enough funds to place an order.

3. Log in to Your Trading Platform: Open the login portal in your mobile device or desktop and then fill the required details to login. 

4. Place Your Order: after login, Select the stock in which you want to invest. Then enter the quality, choose your preferred order types and price. 

5. Check Your Order Status: before closing the app, check your order status whether it is placed or not.

Things to keep in mind for muhurat trading 2026?

Muhurat Trading is associated with the diwali festival that is the indication for the positive financial beginnings in Indian tradition. However, Traders should approach it with the same discipline they follow on regular trading days. 

Here are some important points:

1. Do Not Invest Only for Tradition

The investment decision must be taken based on the financial goals, research and risk appetite. This shouldn’t be taken based on the Mahurat trading only, it is a special day but does not guarantee profit. 

2. Understand Market Volatility

Market conditions can be different during Muhurat Trading because during that time stock prices fluctuate because of sudden hype, so avoid taking impulsive decisions that could affect your portfolio. 

3. Choose the Right Order Type

A market order gives one the option to buy/sell at a market’s best available price. On the other hand, a limit order allows you to choose price levels but execution is not guaranteed.

4. Remember the Settlement Obligations

All trades executed in Muhurat Trading have to be settled. Hence, be sure you have sufficient funds to settle the deals.

5. Understand the Risks of Derivatives

Futures and options have their risks. These risks remain unchanged during Muhurat Trading so it’s essential to understand your position beforehand.

6. Check Your Broker’s Trading Schedule

Make sure to check the market timings as well as the broker’s instructions for giving placements and squaring off.

Who Can Participate in Muhurat Trading?

Muhurat Trading is open to eligible market participants, including retail investors, traders and institutional participants, subject to applicable exchange and broker requirements.

Different participants may approach the session with different objectives.

Conclusion

Muhurat Trading is an event tying together Diwali traditions and stock trading in India. It is a good time for people to be part of the trading community as the new Samvat year starts.

However, the actual value of investing comes not from picking a lucky date, but from making educated decisions regarding the markets, knowing about the risks associated with investing, and acting responsibly.

This Diwali, implement your financial decisions in line with the Diwali philosophy.

Frequently Asked Questions

1. What is the Muhurat Trading time in 2026?

The Diwali trading session in the year 2026 will be conducted on 8th November which falls on a Sunday. The stock markets opening for trading will start at 2:20 PM to 3:30 PM IST. The preopening session will occur earlier from 2:05 PM to 2:20 PM.

2. Is it good to invest during Muhurat Trading?

Although Muhurat Trading gives you an active chance of investing in the market, there is no assurance of making profits by investing in stocks. Investing in shares should be based on the fundamentals of the company and needs of the investor. 

3. Which stocks should I buy during Muhurat Trading?

Muhurat Trading does not list or specify a stock list that is to be invested in. Investors should concentrate on companies having good business fundamentals and making investments which will yield big in the long term.

4. Can I sell shares during Muhurat Trading?

Yes. The buying or selling of eligible shares during the Muhurat Trading Session shall be done in accordance with the exchange rules and other applicable trading restrictions. Before placing the order, verify the trading status of the stock, available quantity, and order execution status.

5. Why is Muhurat Trading held on Diwali?

During Diwali, investors meet annually to get together on Muhurat Trading as they begin with the celebrations of the new Samvat year according to the traditional Hindu calendar. Since this period is believed to be auspicious for the commencement of further and new financial activities, this includes investment and trading. The session also marks the Samvat year of 2083 starting in the year 2026.

6. Can we trade in F&O during Muhurat Trading?

Yes. Muhurat trading also allows for the trading of all eligible equity F&O, in accordance with exchange rules and board of governance. For 2026, the normal session and trading of equity F&O at the NSE will take place from 2:20 PM to 3:40 PM IST. Order cut-off timings, product availability and the timings for position square-off should be checked from respective brokers’ platforms.

Disclaimer: Muhurat Trading does not guarantee profits. All investment and trading decisions should be based on independent research, financial goals and risk appetite. Market risks remain applicable.