Stock market trends during Muhurat Trading day in the past 20 years

Key takeaways:

• Muhurat trading is a special Diwali session conducted by NSE and BSE to mark the beginning of a new Samvat year.
• In 2026, NSE and BSE will conduct Muhurat trading on Sunday, 8 November, from 2:20 PM to 3:30 PM.
• In the last 20 Muhurat trading sessions from 2006 to 2025, the Nifty 50 closed green 15 times and red 5 times.
• Since 2018, the Muhurat trading session has closed in the green for 8 consecutive years till 2025.
• The strongest Muhurat-session gain was in 2008, when the Nifty 50 rose 6.35%, and the Sensex rose 5.85%.
• Investors should treat Muhurat trading as a symbolic and short session, not as a basis for short-term trading decisions.

Muhurat trading is a one-hour special session that NSE and BSE hold on Diwali to mark the start of a new Samvat year. The word muhurat means an auspicious time, and the custom comes from the Gujarati and Marwari business communities, who close their old account books and open new ones on Diwali with the Chopda Pujan. BSE has held the session since 1957 and NSE since 1992.

In this blog, we will explore how the Sensex and the Nifty 50 behaved in Muhurat sessions from 2006 to 2025, what the pattern does and does not show, whether the session says anything about the year that follows, and how the 2026 session is scheduled.

What is Muhurat trading?

Muhurat trading is one of the most unique traditions of the Indian stock market. Conducted every Diwali, it marks the start of a new Samvat year and gives investors a short window to place trades on an auspicious day.

It follows the structure of a normal day in compressed form, with a short pre-open session and a continuous market. During Muhurat trading, investors can trade across equities, derivatives, currencies and commodities, and every trade carries normal settlement obligations.

Because it is short and liquidity is thin, most participants see it as a symbolic trade. For years, this session was held in the evening. However, in 2025, NSE moved it to the afternoon, and in 2026, NSE and BSE have scheduled Muhurat trading from 2:20 PM to 3:30 PM on 8 November, 206.

Historical performance of Nifty 50

Here is how the Nifty 50 has performed during Muhurat trading sessions from 2006 to 2025:

Historical performance of Sensex

Here is how the Sensex has performed during Muhurat trading sessions from 2006 to 2025:

Key trends from past Muhurat sessions

The most notable Muhurat session was in 2008, when the Nifty 50 rose 6.35%, and the Sensex rose 5.85% amid extreme volatility following the global financial crisis. This remains the largest single-session gain in the available historical data.

In contrast, 2017 saw the sharpest Muhurat-session decline for Nifty 50, with it falling 0.63%. For Sensex, the sharpest fall was in 2007, when it fell 0.79%. Negative sessions occurred in 2007, 2009 (Only Nifty 50), 2012, 2016 and 2017, reflecting that the Muhurat trading session does not guarantee a positive outcome.

Between 2018 and 2025, both the Nifty 50 and Sensex closed higher in every Muhurat session, though the gains were mostly modest.

Does Muhurat trading predict the next Samvat year?

A positive Muhurat session does not reliably indicate how the market will perform over the following Samvat year. For example, the Nifty rose 0.18% in the 2006 Muhurat session and the following Samvat year delivered a strong gain, while the 2007 Muhurat session fell 0.62% and was followed by a sharp market decline.

Similarly, the 2008 Muhurat session rose 6.35% and was followed by a strong recovery, while the 2010 Muhurat session rose 0.48% but was followed by a weaker market phase, declining 17.6% during that Samvat year.

This shows that Muhurat trading is better viewed as a cultural and sentimental event rather than a reliable market predictor.

What investors should keep in mind?

Muhurat trading is a short session, and liquidity can be lower than on a normal trading day. Investors should avoid making large or impulsive trades solely because of the festive sentiment.

The session is best used for symbolic investments, portfolio reviews or small, well-planned trades. Investors should continue to focus on fundamentals, valuations, risk appetite and long-term financial goals rather than expecting the Muhurat session to set the market direction for the year.

Final thoughts

Muhurat trading remains a special tradition in the Indian stock market, blending culture with investing. Over the past 20 sessions from 2006 to 2025, the market closed higher in most Muhurat sessions, but the magnitude of gains has generally been small, and the outcome has not consistently predicted the following Samvat year.

For 2026, NSE and BSE will conduct Muhurat trading on 8 November from 2:20 PM to 3:30 PM. Investors can participate in the session, but should treat it as a ceremonial start to the new Samvat year rather than a trading signal.