Diwali Muhurat Trading Is A Ritual, Not An Investment Strategy. Here's How To Get It Right

Diwali Muhurat Trading 2026: Every Diwali, thousands of investors make a beeline for the stock market. For some, buying a share during Muhurat trading is as much a part of the festivities as lighting diyas, exchanging gifts and worshipping Goddess Lakshmi. Even a small investment is seen as an auspicious beginning to the new Samvat.

But while the tradition is rooted in the hope of prosperity, investors need to remember one thing: an auspicious trading session does not necessarily translate into an auspicious portfolio. The main equity session will run from 2:20 pm to 3:30 pm today.

Historical data may offer some encouragement. The Nifty 50 closed higher in 14 of the 20 Muhurat trading sessions between 2006 and 2025. In the last 10 sessions, both the Nifty 50 and Sensex ended in the green on eight occasions. However, these numbers offer no guarantee of future returns. In 2025, for instance, the Nifty 50 gained just 0.10 per cent during the special session.

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Don't Let A Festive Purchase Derail Your Financial Goals

Nehal Mota of Finnovate Financial Services told NDTV that investors should begin with their financial plans rather than stock tips.

Before putting money into the market, take stock of your finances. Do you have enough money for upcoming expenses, EMIs and emergencies? Is the money you are planning to invest actually available for long-term goals?

Using money earmarked for essential expenses simply because the occasion feels auspicious can put unnecessary pressure on your finances.

Your existing portfolio also deserves attention. If you already have considerable exposure to a particular sector, buying another stock from the same sector may only increase your concentration risk. Muhurat trading should be an opportunity to make considered investment decisions, not an excuse to add more stocks without a clear purpose.

The same applies to mutual funds. Starting a Systematic Investment Plan (SIP) on Diwali may feel like a meaningful way to begin the new Samvat, but the date itself does not offer any special return advantage. What matters is maintaining discipline and investing consistently over the long term.

And if the festive mood tempts you to try futures and options (F&O) trading, it is worth remembering the risks. A Securities and Exchange Board of India (SEBI) study found that 93 per cent of individual equity F&O traders incurred losses between FY22 and FY24.

Clean Your Portfolio Before Lighting The Diyas

Ajay Lakhotia, Founder and CEO of StockGro, told NDTV that muhurat trading can be more than just an annual stock-buying ritual. It can also be an opportunity to give your financial life a fresh start.

"Muhurat trading is one of the most beautiful traditions in Indian markets. Just think about how we get ready for Diwali. We clean the house to welcome Goddess Lakshmi. Then we invest in something small but meaningful on Dhanteras. We light a diya for a bright year ahead.

"Similarly, muhurat trading is one such Indian tradition for all smart investors to consider. In the days before the session, clean your portfolio. Exit what no longer fits your goals and rebalance what has drifted. Then, during muhurat trading, buy something already on your long-term watchlist for shagun. And finally, use the auspicious mood of the festival to setbuild correct financial routines for Samvat 2083: it could be a monthly investment amount or a rule for what you will do when markets fall!

"This way, if you carry that spirit into the next 364 days, the Muhurat will have done its job."

The idea is to use the occasion to revisit investments, rather than make decisions in the heat of the moment. Investors can review their asset allocation, check whether their insurance cover is adequate, assess outstanding debt and see how close they are to their financial goals.

Make Muhurat Trading The Start Of A Better Financial Habit

Ultimately, Muhurat trading does not have to be about finding the next multibagger or making a quick profit in an hour-long session.

A small purchase from a well-researched watchlist can preserve the tradition. Reviewing your portfolio can make it more meaningful. And setting a realistic monthly investment target can give the ritual a purpose that lasts beyond Diwali.

After all, wealth creation is not built in one auspicious trading session. It comes from making sensible financial decisions, staying invested and allowing time to do its job.

Celebrate Muhurat trading. Buy that shagun stock if it fits your plan. But remember, your financial future depends far more on what you do over the next 364 days than on what happens during one festive hour.