Diwali Muhurat trading session is an annual trading session that is believed to be an auspicious occasion and an opportunity for Indian traders and investors for a fresh start.

The muhurat session is usually held on the first day of Samvat, the Hindu Solar calendar. In 2024, the Muhurat session is held on November 1, the first day of Samvat 2081. The pre-opening starts at 5:45 pm evening and the normal market session will be held between 6 pm and 7 pm on November 1.

The Muhurat session this year comes after Nifty has endured one of its worst months since March 2020. Nifty had fallen 6.09% in October due to geopolitical tensions, Foreign Institutional Investors selling off more than ₹1 lakh crore in October.

Nifty has usually seen the highest average returns during November. Will November post a turnaround for the markets? Analysts seemed to be divided due to volatility posed by U.S. presidential elections, and elevated valuations of Indian markets. However, the lessening quantity of FII selling and Domestic Institutional Investors and retail buying in the festive season poses hope for the bulls.

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Dr. V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, said, “The decline in the intensity of selling by the FIIs bodes well for the market. Renewed buying by DIIs and retail investors can lead to a rally assisted by the festive mood. However, the fundamentals do not warrant a sustained rally. Q2 numbers indicate a slowdown in FY25 earnings growth. Based on the consensus FY 25 Nifty earnings around 1000, Nifty is currently trading at 24 times earnings. These elevated valuations will cap a potential rally. However, reasonably valued segments like financials will remain resilient with a positive bias.”

Chethan Shenoy, Director & Head – Product & Research, Anand Rathi Wealth Limited said there will be market volatility until the U.S. election results come in. “Additionally, last month saw FIIs withdrawing funds, partially influenced by attractive opportunities in China following its recent stimulus policy.

However, this selling seems to be tapering off, leaving not many reasons for investors to worry about. India’s macroeconomic fundamentals remain robust, with expected GDP growth of 7–10%, the fiscal deficit is well-managed, and the market is fairly valued. Overall, the outlook for Indian markets is positive, with SIP inflows reaching new highs each month and strong domestic participation supporting the fact that investors have faith in the market,” Shenoy added.

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