The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will be holding a special 1-hour Muhurat trading session on the festive occasion of Diwali on Wednesday, 7 November.

The session will be conducted between 5.30 pm and 6.30 pm in both stock exchanges.

Held every year on Diwali, the special trading session is considered to be auspicious for stock market trading. Since Diwali marks the start of Vikram Samvat 2075, traders believe that the Muhurat trading on this day brings wealth and prosperity throughout the year. The trading community has, therefore, been observing this ritual for years.

Reports say that pre-opening session would start 15 minutes prior to the Muhurat trading. Orders with regard to all the segments – equities, equity derivatives F&O (futures & options) and currency derivatives – will be accepted between the Muhurat trading.

On Diwali eve, the key equity indices closed on a timid note as the S&P BSE Sensex and NSE Nifty50 ended flat on Tuesday. At the closure of the yearly account books, the benchmark Sensex gained eight per cent on a year-on-year basis, while the Nifty50 rose 3.8 per cent.

Index-wise, the S&P BSE Sensex rose 40.99 points to 34,991.91 points. It had opened at 35,076.24 points from its previous close of 34,950.92 points. Similarly, the NSE Nifty50 closed flat at 10,530 points.

In the day’s trade, the domestic equity market, which had opened on a positive note, failed to hold on to its gains, as selling pressure in index pivotals like banking and finance sectors subdued investors’ sentiments.

On a sector-specific basis IT, TECK (technology, entertainment and media) and consumer durables stocks made gains on the BSE by over one per cent each, while the banking and finance counters slipped.