Diwali is the festival of new beginnings, and for India's investing community it also marks the start of a new Samvat year. Every Diwali the stock exchanges open their doors for a short, symbolic session known as Muhurat Trading.
This year the session runs on Sunday 8 November, and one thing about it is different from every Muhurat session before it. Here is what you need to know.
What is Muhurat Trading?
"Muhurat" means an auspicious time. Muhurat Trading is a special session held by the stock exchanges on the day of Diwali Laxmi Pujan to mark the beginning of the new Samvat, the traditional Hindu calendar year. BSE began the tradition in 1957, and NSE followed in 1992.
For many families and traders it is a ritual as much as a market session: a chance to place a small, symbolic first trade of the new year, often alongside Laxmi Pujan and the opening of fresh account books, known as chopda pujan.
The sentiment is genuine and the session is short. What it is not is a different kind of market. The same rules, the same charges, the same price movements and the same risks apply as on any Tuesday afternoon.
Muhurat Trading 2026: date and timings
Date: Sunday, 8 November 2026, Diwali Laxmi Pujan New Samvat: Samvat 2083
The full schedule, per the NSE circular:
| Session | Time (IST) |
|---|---|
| Block deal window | 1:50 PM to 2:05 PM |
| Pre-open session | 2:05 PM to 2:20 PM |
| Continuous trading, most stocks | 2:20 PM to 3:30 PM |
| Continuous trading, F&O stocks | 2:20 PM to 3:15 PM, then the closing auction |
| Equity derivatives | until 3:40 PM |
| Post-close session | 3:50 PM to 4:00 PM |
[Editor: confirm the CAS row against NSE circular NSE/CMTR/76941 before publishing.]
The pre-open session from 2:05 PM is where orders are collected and matched to establish an opening price. You can place, modify and cancel orders during it, but nothing trades continuously until 2:20 PM.
What changed since last Diwali: the Closing Auction Session
This is the first Muhurat Trading session since the exchanges introduced the Closing Auction Session, or CAS, in August 2026.
Under CAS, stocks that have futures and options contracts stop continuous trading fifteen minutes before other stocks, and their closing price is then set by an auction rather than by an average of late trades. On a normal day that means continuous trading ends at 3:15 PM for those stocks. The same structure applies on Sunday.
What this means in practice, on a day when the whole session lasts seventy minutes:
- If the stock you want to buy has F&O contracts, your order window closes at 3:15 PM, not 3:30 PM.
- If it does not, you have until 3:30 PM.
- Equity derivatives run later, to 3:40 PM.
If you are used to leaving your symbolic trade until the last few minutes, check which category your stock sits in before Sunday. A short session leaves no room to discover this at 3:20 PM.
Our separate guide to the Closing Auction Session explains the mechanism in full, including how the auction sets a closing price and what happens to pending orders.
The week around Diwali
Markets are closed on Saturday 7 November, as on any weekend. The Muhurat session runs on Sunday 8 November. Regular trading resumes on Monday 9 November, and the markets are closed on Tuesday 10 November for Diwali Balipratipada.
Please check the exchange holiday list for any updates, since schedules can be revised by circular.
Do Muhurat trades settle?
Yes, and this is the point most new participants miss.
Trades executed during the Muhurat session create normal settlement obligations. Shares bought must be paid for and shares sold must be delivered, on the standard cycle. Profit and loss from Sunday's trades is settled from Monday morning.
So treat it like any other trading session when it comes to funds and holdings, even though it is a ceremonial occasion. A symbolic trade is still a real trade. If you buy, the money leaves your account. If the price falls on Monday, you are holding the loss.
One detail worth knowing: intraday positions must be squared off, and auto square-off timing is set by each broker rather than by the exchange. Those times often fall before the exchange close. If you plan to trade intraday on Sunday, check our specific timing rather than assuming you have until 3:30 PM.
How to prepare for the session
1. Check your account and funds. Make sure your KYC is up to date and that you have sufficient funds or securities available before the session begins. Sunday afternoon is a bad time to discover a bank mandate has lapsed.
2. Decide what you want to do in advance. Seventy minutes moves quickly, and the pre-open is only fifteen of them. Having a plan on what you intend to buy or sell, and in what quantity, helps you avoid hurried decisions. Write the name and the number down before the session opens.
3. Use limit orders. With a short session and thinner participation than a normal day, prices can move sharply on relatively small volumes. A market order fills at whatever price is available, which on a thin book can be some distance from the last traded price. A limit order lets you decide the price at which you are willing to transact. If it does not fill, you have lost nothing but the trade.
4. Check your stock's closing time. As above, F&O stocks stop trading at 3:15 PM under CAS. Everything else runs to 3:30 PM.
5. Keep your tools ready. Log in to IBT-ProTrade and your mobile app a little early so you are not dealing with passwords or updates when the session opens. If you use IB Algo, review your strategies and parameters beforehand. Sunday afternoon load on broker platforms is unusual, so leaving yourself ten minutes rather than two is sensible.
6. Start small and stay diversified. Many investors treat Muhurat Trading as a symbolic start. There is no need to commit a large amount in one session, and nothing about the date makes a large commitment safer than it would be on any other day.
Risk management matters, even on Diwali
Muhurat sessions are short, and volumes and volatility can differ from a regular trading day. Thinner books mean wider gaps between buying and selling prices, and a small order can move a small stock further than it would on a Wednesday.
An auspicious occasion does not change market risk. The calendar has no view on valuations.
Stay within your risk appetite, avoid acting purely on tips or social media chatter, and invest according to your own goals and time horizon. Lists of stocks circulating in the days before Diwali are marketing for someone, and a list is not a reason.
Celebrate the new Samvat responsibly
Diwali is a good moment to review your portfolio, revisit your financial goals and set intentions for the year ahead. That review is worth more than the trade.
Three questions are worth asking before Sunday. Has your asset allocation drifted over the past year? Are your SIP amounts still matched to your income? And is there anything in your portfolio you are holding only because selling it would mean admitting a mistake?
Whether you place a symbolic trade or simply light a diya and plan, we wish you and your family a bright and prosperous Diwali from all of us at Indiabulls Securities.
