For the first time since 2017, Sensex and Nifty end Muhurat trading in the red
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PARTHA SINHA
Indian stock markets concluded a special one-hour Diwali Muhurat trading session in the red, snapping a seven-day winning streak. Despite the marginal decline, the indices recorded significant weekly gains of 8-9%.
The Significance of the 2026 Diwali Muhurat Trading Session
On Sunday, November 8, 2026, the Indian stock exchanges—the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)—conducted their traditional one-hour special session known as Muhurat Trading. This event, which marks the commencement of the new Hindu calendar year, Samvat 2083, serves as a symbolic period for investors to initiate new portfolios or adjust existing holdings in alignment with the auspicious festival of Diwali.
Market Momentum Preceding the Session
The anticipation surrounding this year's session was bolstered by a historic rally in the preceding week. The Nifty 50 and Sensex had recorded gains for seven consecutive sessions, culminating in an overall weekly rise of more than 8%. This performance marked the most significant weekly gain for Indian markets in nearly six years, creating a bullish sentiment that had investors closely monitoring whether the momentum would sustain during the holiday window.
Breaking a Nine-Year Trend
Historically, Muhurat trading sessions are characterized by low volatility, typically moving within a 1% range. However, this year defied conventional expectations as the markets ended in the red for the first time in nine years. The BSE Sensex shed 28.62 points to close at 80,999.40, while the Nifty 50 concluded 0.2% lower at 24,986.40. This decline serves as a notable deviation from recent patterns, marking the end of a seven-session winning streak that had characterized the lead-up to the festival.
Profit-Taking and Investor Sentiment
The marginal dip in the indices is largely attributed to profit-booking by investors. Following a week of aggressive gains, market participants utilized the brief one-hour window to secure profits. While the indices showed slight gains in the early minutes of the trade, the late-session selling pressure pushed the benchmarks into negative territory. This shift underscores the pragmatic approach of modern investors who prioritize risk management even during sentiment-driven events.
Broader Economic Implications
Despite the session ending in the red, the broader context remains positive for the Indian equity market. The 8-9% weekly gain leading into Diwali reflects robust investor confidence and strong market fundamentals. The transition into Samvat 2083, while starting with a minor correction, follows a period of exceptional growth, suggesting that the underlying trend remains resilient despite the holiday-specific profit-taking observed during this year's Muhurat session.
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