India’s stock markets will open for a special shortened session on Sunday as the country celebrates Diwali, its biggest festival, keeping alive a tradition that has survived the shift from handwritten ledgers and bustling trading floors to smartphones and algorithms.
Known as Muhurat trading, the ceremonial session marks the start of a new Hindu calendar year, called Samvat, for many of India’s trading communities. The idea is simple: begin the year with a transaction intended to bring prosperity.
But this year’s celebration comes against a mixed market backdrop. While a recent rebound has turned India into a relative bright spot amid the global tech selloff, equity benchmarks are ending Samvat 2082 down more than 3%, their worst annual performance in over a decade. Domestic markets are little changed from levels seen during Muhurat trading day two years ago.
Here’s what to know about one of the most enduring traditions of the Indian stock market:
Muhurat trading is a special stock market session held on Diwali, the Hindu festival of lights. “Muhurat” refers to an auspicious period for beginning something new. For many Gujarati and Marwari business families, Diwali traditionally marks the end of one commercial cycle and the beginning of another. Conducting a transaction at the start of the new year is considered auspicious.