Muhurat Trading 2024: Timing, Strategy, and How to Diversify with Fixed Income

Muhurat trading is an annual, symbolic event celebrated by investors on the Indian stock exchanges during Diwali, the festival of lights. It’s more than just a regular trading session—this one-hour period is believed to bring good fortune and prosperity for the year ahead. Investors engage in a brief session on exchanges like NSE and BSE as part of this auspicious tradition.

For 2024, Muhurat Trading will once again provide an opportunity to start the new financial year with optimism. Here’s a deep dive into what Muhurat trading is, its significance, and how investors can make the most of it, especially with fixed-income options like bonds and invoice discounting through Tap Invest.

What is Muhurat Trading?

Muhurat trading is a symbolic trading session that lasts about one hour on Diwali, based on the Hindu calendar‘s most auspicious time or “muhurat.” The concept is rooted in the belief that any activity undertaken during this sacred period will bring prosperity.

Investors and traders use this opportunity to buy shares, often seen as tokens of good luck. Traditionally, investors purchase stocks to hold them long-term, as it is considered an auspicious start to the financial year.

Muhurat Trading Time in 2024

The specific muhurat trading time is usually announced by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) closer to Diwali. The session usually takes place in the evening and lasts for about one hour. In 2024, it is expected to follow the same pattern.

The Diwali Muhurat trading session for 2024 is scheduled on Friday, November 1, with the following timings:

Significance of Muhurat Trading:

Muhurat trading carries both cultural and financial significance:

1. Cultural Aspect: The session is seen as a way to invoke blessings of prosperity for the new financial year. Many investors perform traditional Lakshmi Puja (worship of the goddess of wealth) before participating in the market.
2. Financial Aspect: While it’s a symbolic gesture, Muhurat trading provides a platform for long-term investments. Investors often buy small quantities of stocks or make symbolic investments in new ventures, with the belief that this will bring financial prosperity.

Diwali Muhurat Trading Stocks: What to Buy?

Traditionally, investors prefer blue-chip stocks or large-cap companies known for their consistent performance. However, many also look at sectoral favorites, such as:

• Banking and financial services: Known for solid fundamentals.
• Energy stocks: Companies like Reliance or NTPC.
• Technology and IT stocks: Large-cap tech companies.
• Consumer goods and FMCG: Given India’s large consumer base, companies like Hindustan Unilever are popular.

However, it’s important to remember that investing is a personal decision. You can diversify your portfolio with a mix of equities and fixed-income products, such as bonds, for stability and balanced growth.

Fixed Income Investments During Muhurat Trading

While Muhurat trading focuses on equities, it’s also a great time to evaluate fixed-income investments like bonds, asset leasing, and invoice discounting—especially through platforms like Tap Invest. Here’s why:

• Diversification: Adding bonds and fixed-income products can help reduce the volatility in your portfolio.
• Stability: Bonds provide predictable, stable returns, making them ideal for investors seeking long-term growth without excessive risk.
• Symbolic Wealth Building: Just as Muhurat trading represents a new financial beginning, fixed-income products can symbolise a steady and secure path toward wealth accumulation.

At Tap Invest, investors can explore reliable return opportunities like invoice discounting and corporate bonds. Unlike equities, fixed-income products carry lower risk, making them attractive options for risk-averse investors looking to diversify their portfolios.

Benefits of Fixed Income Investments for Diwali 2024

• Predictable Returns: Bonds and asset leasing often offer fixed returns, reducing exposure to market volatility.
• Risk Mitigation: Bonds can hedge against equity market volatility. While stocks can fluctuate, fixed-income products remain steady, ensuring stable income.
• Long-Term Security: Fixed income is ideal for investors looking to balance short-term risks with long-term goals. Investing in bonds during Muhurat trading can ensure your portfolio remains resilient throughout the year.

How to Make the Most of Muhurat Trading 2024:

• Invest for the Long-Term: Muhurat trading isn’t about quick gains. Use this auspicious time to invest in equity and fixed-income options for long-term growth.
• Balance Risk with Fixed Income: By adding bonds or other fixed-income products to your portfolio, you can enjoy the best of both worlds—equity for growth and fixed income for security.
• Leverage Platforms like Tap Invest: To diversify your holdings, explore high-quality fixed-income investments such as invoice discounting, asset leasing, and bonds.

Muhurat Trading: A Unique Investment Opportunity

While Muhurat trading is brief, its symbolic importance resonates with millions of investors. It offers a unique opportunity to start the new financial year with optimism, and for those looking to diversify their portfolios, incorporating fixed-income investments during this time is a smart move. Tap Invest offers an ideal platform to explore bonds and other fixed-income options, ensuring a balanced portfolio for long-term wealth creation.

FAQs

1. What is Muhurat trading?
Muhurat trading is a unique, one-hour trading session held on the Indian stock exchanges during Diwali. It is considered an auspicious time for investors to start the new financial year.

2. What is the significance of Muhurat trading?
Muhurat trading holds cultural and financial significance. It is seen as a way to bring good fortune and prosperity, and many investors buy stocks, believing it will help them build wealth throughout the year.

3. What stocks should I buy during Muhurat trading?
Investors prefer blue-chip stocks, large-cap companies, and sectoral favourites like banking, energy, technology, and consumer goods. However, the choice depends on individual investment strategies.

4. What is the Muhurat trading time in 2024?
In 2024, Muhurat trading will take place on Friday, November 1. The pre-opening session will start at 6:00 PM and last 15 minutes, followed by the continuous trading session from 6:15 PM to 7:15 PM.

5. Can I invest in fixed income during Muhurat trading?
Yes! While Muhurat trading is often associated with equities, it’s a great time to diversify your portfolio with fixed-income products like bonds and invoice discounting through platforms like Tap Invest.