Hyderabad: Diwali, the festival of lights, is the most important festival for the Hindu business community. For traders, it marks the beginning of a new financial year and is an occassion to pray the goddess of wealth - Laxmi Devi.
Though the equity markets remain closed on Diwali day, it opens for a brief period in the evening for the investors and stockbrokers for 'Muhurat Trading'.
Muhurat Trading
As per the Hindu rituals and traditions for every special eve or occasion, a muhurat is decided by the priests. The same goes for the stock market and is announced by the stock exchanges.
Muhurat trading is the auspicious stock market trading for an hour on Diwali, which is also known as Samvat.
It is a symbolic and old ritual, that has been retained and observed for many decades by the brokers.
Traders believe that the trading session will bring wealth and prosperity throughout the year.
This Diwali marks the end of Samvat 2075 and the beginning of Samvat 2076.
On Samvat 2076, the Muhurat Trading at the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will be for one hour and would be held between 6.15 p.m. and 7.15 p.m. on Sunday, October 27.
Top Picks
Stocks of ICICI Bank and L&T have been recommended as the top Muhurat session picks by a leading brokerage house.
According to Centrum Capital, on a standalone basis, ICICI Bank can achieve 1.5 per cent Return on Assets (ROA) and 15 per cent Return on Equity (ROE) by in a couple of years.
"Moreover, reduction of the tax rate to 25 (per cent) will help it achieve faster recovery and upgrades in non-performing assets (NPA), lower credit cost as well as higher loan book growth in the wholesale side and higher earnings per share (EPS) growth going forward."
Other top stock picks are Larsen & Toubro, Page Industries, Prestige Estates and VIP Industries.
