Muhurat Trading: Diwali Traditions and Investing Culture

By A Staff Reporter:  The practice of Muhurat Trading, where stock brokers and investors participate in a symbolic trading session on Diwali, remains a cherished tradition in India’s business and investment culture. Every year, during this auspicious period, the stock markets open for a short time, marking the start of the Hindu financial year. This tradition holds deep significance for traders, especially within the Marwari and Gujarati communities.

At the heart of this custom is the Chopda Puja or Khata Puja, a ritual performed by stockbrokers to bless their account books for prosperity and success in the coming year. The ceremony serves as a prayer for good fortune and wealth, aligning with the spirit of Diwali, a festival that celebrates abundance and the triumph of light over darkness.

Historically, the approach to Muhurat Trading differed based on community beliefs. Many Marwari traders preferred to sell their shares on this day, holding the belief that money should not enter the home during the festival. In contrast, Gujarati traders often used this occasion to buy stocks, seeing it as an opportunity to start the year with fresh investments. However, these practices were largely based on tradition, and there is no concrete data supporting one strategy over the other.

Today, Muhurat Trading has become more symbolic, with most investors using it to make small, ceremonial trades. For many Hindu investors, this session is seen as an auspicious time to purchase shares of strong, well-performing companies after performing Lakshmi Puja. It is believed that such investments, made during a blessed period, can yield positive results over time.

Muhurat Trading continues to thrive as a unique blend of spirituality and finance, reflecting India's rich cultural and economic heritage.