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Do markets always go up during muhurat trade?

On Muhurat trading day in 2012, the Sensex declined 0.28% but it has risen almost 10% since then

October 29, 2013 12:22 IST | India Infoline News Service
In recent years, the stock market has seen lackluster movement on the muhurat trading day and has even ended negative during few years. Many investors are betting on a new high by Diwali this year.

Muhurat trading is the stock market trading activity which happens for about an hour on the Diwali day. Usually, this trading session is held in the evening. It is a symbolic ritual which has been performed for years and investors make some token purchases on this day. This year its on a Sunday. The Stock Exchanges will conduct a special muhurat live trading session from 18:15 hours to 19:30hours on November 3, 2013 on Diwali.

According to the data compiled from 2000 to 2012, the BSE Sensex has ended in the red on four occasions in the year following the muhurat trading. On eight other times, it has ended higher.

On Muhurat trading day in 2012, the Sensex declined 0.28% but it has risen almost 10% since then. In 2010, the Sensex gained 0.53 on Muhurat day but declined 18% in the next one year.

In 2008, the benchmark index gained 5.86% on the Diwal day. However, Muhurat trading cannot be taken as the base for the whole year.

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