The Indian stock market will remain open on Monday, which is October 20, despite some states in the country celebrating Diwali Lakshmi Puja, while some others do it on October 21. Both the BSE and the NSE will have regular trading for the day. However, on October 21, it is an official holiday for the exchanges, except for a special one-hour Muhurat trading session - a traditional ritual that marks the beginning of the new Samvat year.
Muhurat Trading timings
The Muhurat Trading session will be held between 1:45 pm and 2:45 pm, with modification allowed till 2:55 pm. Trading will be permitted across all market segments, including equities, derivatives, currency, and commodities.
Market participants view this session as an auspicious start for wealth creation, and investors across India, from seasoned traders to first-time retail buyers, often participate in the short, festive window.
Stock market holidays 2025 - Full list
After Diwali, the markets will also remain closed on October 22 for Diwali Balipratipada. For the rest of 2025, two more holidays are scheduled - November 5 (Prakash Gurpurab) and December 25 (Christmas).
You can always check the complete list of market holidays on the BSE official website or NSE website.
Stock Market Holiday 2025: Are NSE and BSE closed on October 20 or 21 for Diwali?
Significance of Muhurat trading
The tradition of Muhurat trading dates back decades and is deeply rooted in Indian financial culture. It signifies a new beginning in the Samvat year, which is the traditional Hindu calendar year followed by the trading community. Investors believe trading during this time brings prosperity and good fortune, as Goddess Lakshmi, the deity of wealth, is worshipped during Diwali.
Over the years, Muhurat Trading has become more symbolic than strategic. While trading volumes remain modest, the sentiment is overwhelmingly positive — as investors prefer to buy stocks considered lucky or invest in blue-chip companies for long-term gains.
Market outlook ahead of Diwali
The stock market entered the Diwali week on a bullish note. The Nifty 50 closed the previous session at 25,709, up 1.68%, while the Sensex gained 1,451 points to settle at 83,952, marking a three-week winning streak.
Experts believe festive optimism and corporate earnings are likely to drive market sentiment. However, analysts also caution that smallcaps remain under pressure.
"Investors are expected to maintain a preference for high-quality names across consumption, banking, and real estate, with any market corrections likely to attract renewed buying interest. In holiday-led truncated week, investors are likely to remain cautious in view of the release of key economic data, such as US inflation, employment, and India’s PMI figures," said Vinod Nair, Head of Research, Geojit Investments.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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