Key Indian equity markets
will hold a special "Muhurat" trading session on Thursday to mark the start of the Hindu New Year — Samvat 2074.
The session, considered auspicious for stock markets, will be held between 6:30 pm and 7:30 pm.
While Samvat 2073
draws to a close with robust gains, adding over Rs 25 lakh crore to investors’ wealth, stock markets
are poised for another year of double-digit growth, with traders remaining cautiously optimistic about the near-term market direction.
During the past samvat, the benchmark Sensex gained 4,642.84 points, or 16.61 per cent, while the broader Nifty surged 1,572.85 points, or 18.20 per cent.
The 50-share Nifty fell by 23.60 points, or 0.23 per cent, to close at 10,210.85 on Wednesday, after moving between 10,175.75 and 10,236.45 through the day. Early in the day, the Sensex had opened lower at 32,518.56 and fallen further to a low of 32,462.85 before ending at 32,584.35, down 24.81 points or 0.08 per cent. (More details here
trading is a special trading session for investors conducted by the National Stock Exchange (NSE) and the BSE on the occasion of Diwali. Muhurat
literally means ‘an auspicious hour’.
The practice of deciding the astrologically significant time for the so-called Muhurat
trading, or auspicious trading session, comes from the Gujarati culture. Gujaratis are a dominant community among investors on Dalal Street.
For the Muhurat
trading, the NSE and BSE usually wear a distinctly ethnic look with designed rangoli patterns and innumerable diyas lined up to welcome goddess Lakshmi.
Data compiled by Bloomberg shows that in the past 10 years, the trading has ended on a positive note seven times with stocks closing lower 80 per cent of the time.
Compiled by BS Research Bureau; Source Exchange
Significance of Muhurat
It is believed that at the time of Muhurat, planets align themselves in a certain way to make work done during this time fruitful and free of evil forces' influence.
also marks the beginning of the New Year, Muhurat
trading on this day is believed to bring in wealth and prosperity throughout the year. Stocks bought on this day are more for traditional, religious and sentimental reasons.
The business community marks the new financial year on Diwali
with ‘Chopda’ or ‘Sharad Puja’, where old account books or ledgers are closed and new ones are opened for a promising business year.
Trading from 6.30 pm to 7.30 pm
The annual one-hour session this year will be held between 6.30 pm and 7.30 pm and the pre-opening session will start at 6:15 pm. The bourses will remain closed on Friday for ‘Diwali
Which stocks to buy?
Hero MotoCorp – Target price Rs 4300
Indiabulls Housing Finance – Target price Rs 1,600
ITC – Target price Rs 336
L&T – Target price - Rs 1,400
Can Fin Homes – Target price – Rs 3,200
CDSL – Target Price Rs 450
Glenmark Pharma – Target price Rs 900
Natco Pharma – Target price - Rs 1,200
Somany Ceramics – Target price Rs 1,020
While it is considered auspicious to trade on Muhurat
day, it can only be token investment, due to the shallow market and wide bid-ask spread in trading for short period on the Muhurat
day. One can buy any of the shortlisted stocks in a small quantity to adhere to the traditions.
Investors adopted a cautious approach ahead of the long Diwali
weekend, while a weak rupee too affected sentiment, brokers said. Going ahead, analysts caution that the pace of local flows will depend on how the economy and corporate earnings shape up. That apart, markets
will also track global developments, such as monetary policies of central banks, geopolitical situation and commodity prices, especially oil.
Analysts at HDFC Securities say the Nifty50 could correct sharply in the early part of Samvat 2074, but could later revisit the highs and attempt to breach them. On the other hand, analysts at Kotak Securities expect returns in Samvat 2074
to moderate in view of weak near-term earnings growth and higher than average valuations. (Read more
Yogesh Mehta, VP-Retail Research, at Motilal Oswal Securities expects the market to remain in a range, albeit with higher volatility.