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| Traders celebrate Diwali Muhurat Trading 2025 as Sensex and Nifty hit new highs before profit-booking, marking a prosperous start to Samvat 2082. |
Diwali Muhurat Trading 2025: Sensex and Nifty Hit Fresh Highs Before Profit-Booking
Introduction
Each year, the special Diwali Muhurat Trading session on the Indian stock exchanges symbolises good fortune, new beginnings and faith + finance converging. In 2025, this hour-long session (held by the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE)) marked the start of Hindu year Samvat 2082 and saw the benchmarks soar to fresh highs, only to see gains pare back amid profit-booking. This article dives into the indicators, the drivers, the context, sectoral trends, and what it all might mean for investors going into the year ahead.
What is Muhurat Trading?
“Muhurat” means an auspicious moment. On Diwali, traditionally a time for new starts, the Indian stock markets hold a special trading session — typically shorter, symbolic — so that investors can make a token trade to mark the new year. This blends culture and commerce:
- The session is meant to invite prosperity and auspiciousness into one’s portfolio.
- It also signals investor sentiment — mood is often upbeat due to festive liquidity and optimism.
- For 2025, the session took place on 21 October 2025, with block deals from 1:15 pm, then pre-open from 1:30 pm to 1:45 pm, and the main Muhurat session from 1:45 pm to 2:45 pm.
- The market recognised the beginning of Samvat 2082 via this special trade.
Thus, the Muhurat session is a symbolic "opening bell" for the year ahead. While the volume is generally small compared to a full trading day, it serves as a sentiment barometer.
2025 Session – The Big Picture
Benchmarks: Nifty 50 & BSE Sensex
- In the 2025 Muhurat session, the Sensex closed at 84,426.34 points (up ~63 points, or ~0.07 %).
- The Nifty 50 ended at 25,868.60 points (up ~25.45 points, ~0.10 %).
- Both indexes hit fresh 52-week highs during the session, though gains were marginal at close.
- Overall broad market indices also saw modest support: Nifty Midcap 100 rose ~0.11 %, Smallcap 100 ~0.52 %.
Initial Surge, Then Profit-Taking
- The session opened on a strong note: Pre-open levels had Sensex up ~0.14 % opening at ~84,484 and Nifty at ~25,901.
- At one point, the Sensex peaked near ~84,665.44 during intraday, before dropping back.
- By session end gains were trimmed — indicating profit-booking as traders locked in short-term gains.
Context of the Move
- This Muhurat session marked the eighth straight year of a positive close in the session for Nifty.
- Investors were buoyed by global cues, robust earnings expectations, improved sentiment and festive liquidity.
- However, with the indexes at multi-week highs, caution around valuations, profit-taking, and some sectoral drag (notably banking) surfaced.
Why Did Markets Respond Positively?
Several factors underpinned the modest up-move in the Muhurat session and the broader run-up to it:
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Solid corporate earnings outlook
- Analysts noted upbeat quarterly results from many companies as key support.
- The sentiment that Indian companies are resilient despite external headwinds bolstered conviction.
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Festive liquidity & domestic flows
- The Diwali season typically brings in fresh capital — personal investments, new trades, holiday earnings being invested.
- Institutional flows (domestic) have also regained momentum. For example, foreign inflows picked up earlier in October.
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Global risk environment improving
- Easing US-China trade tensions, positive global equity cues and improved commodity/back-drop all lent support.
- A stronger rupee, or at least less severe depreciation, helped investor confidence in India’s markets.
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Positive technical set-up
- Market charts had suggested that Nifty sustaining above ~25,800 would keep the bullish structure intact, with next target near ~26,000-26,300.
- The fact that Nifty had already been rising in successive sessions ahead of the Muhurat was an encouraging sign.
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A new financial cycle begins
- With Samvat 2082 beginning, there’s a sense of resetting portfolios, new capital allocation, fresh hopes — all good for sentiment.
Key Sectoral & Stock Movements
While the overall move was modest, the underlying composition and stock/s sector themes tell interesting stories.
Sectors in Focus
- Tech, metal, auto, pharma and realty indices were among the better-performers in the session.
- Banking and PSU banks were comparatively weak — in the red in some cases.
Notable Stocks
- In the Muhurat session, names like Bajaj Finserv and Bajaj Finance hit fresh 52-week highs.
- Similarly, Bharti Airtel touched new highs.
- On the drag side: ICICI Bank, Kotak Mahindra Bank were among the weaker constituents.
What This Suggests
- The outperformance of tech/auto/metal/realty signals investor preference for cyclical and growth-oriented plays, rather than just banking.
- The relative lag in banking suggests concerns: valuations, asset quality, margin pressures or regulatory uncertainty.
- The fact that large cap names were hitting highs indicates that the rally is somewhat broad-based, though profit-taking still emerged.
Profit-Booking: Why Did the Gains Fade?
Despite a strong start, the session ended with only marginal gains. Several reasons:
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Valuation stretch
- With Nifty near ~25,868, and Sensex near ~84,426, some segments likely looked expensive. The technical commentary pointed to ~26,000 as the next resistance.
- Traders and funds may have booked profits after the run-up in preceding days/weeks. For example, markets had already risen 1,500 + points in two days.
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Sector-specific drag
- Key weight sectors like banking lagged, which dampened the upside potential for the broad indices.
- If large constituents underperform, they cap overall index gains.
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Short session constraints & liquidity
- The Muhurat trading session lasts one hour (for this year: 1:45 pm – 2:45 pm) so time is limited for sustained momentum.
- Some investors may treat it as a symbolic trade rather than a full directional bet.
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Pre-emptive caution ahead of new year/earnings
- With the festive season, new financial year and upcoming Q2 earnings, investors may have chosen to wait rather than commit heavily.
- Global uncertainties still persist (geopolitical risks, inflation, interest rates) — hence some caution.
Together, these factors mean while the mood was positive, the market was not in a full-blown breakout sprint mode during the Muhurat hour itself.
Historical Trends: How Muhurat Sessions Have Performed
Understanding past behaviour helps put the 2025 session in perspective:
- The Nifty has now logged eight consecutive positive closes in Muhurat sessions.
- Historically, while the Muhurat session is symbolic, it often signals the immediate sentiment of the market. A positive session can boost confidence for the year ahead, whereas a flat/negative session raises caution.
- That said, the performance of the Muhurat session doesn’t always guarantee full-year returns — broader macro and earnings matter.
Thus, 2025’s positive albeit muted close suggests a cautiously optimistic sentiment.
Outlook for Samvat 2082 & What Investors Should Watch
As the new Hindu year is underway and markets open a fresh cycle, here are key considerations and watch-points based on current signals:
Key Support & Resistance Levels
- Technical commentary places Nifty support around 25,600-25,750 and a breakout zone near 26,000-26,300.
- For Sensex, sustaining above ~84,000 is important for the uptrend to hold.
Themes Likely to Drive Markets
- Domestic consumption & services: With India’s services exports and domestic demand strong, companies in these areas may benefit.
- Cyclical sectors: Auto, metal, industrials, realty may lead if global commodity cycles and domestic infra-push gain traction.
- Quality growth names: Larger firms with strong balance-sheets, visible earnings could attract flows.
- Foreign institutional flows: The return of FIIs is critical. Their participation often amplifies moves.
- Valuation discipline: With many indices at elevated levels, discipline around picking entry points matters.
Risks / Watch-points
- Global headwinds: Inflation, interest rate cycles in the US, or renewed trade/geopolitical tensions could spook markets.
- Domestic regulators & policy shifts: Changes in tax/regulation, or slower reforms would hurt sentiment.
- Earnings disappointment: If Q2 or Q3 results don’t meet high expectations, the optimism may fade.
- Overheating sectors: If valuations blow out, profit-taking might return.
Strategy for Investors
- Use the Muhurat session’s symbolism but avoid treating it as a guarantee for returns—let fundamentals guide.
- Consider diversified exposure: mix of quality large caps + selectively chosen mid/small caps in growth sectors.
- If entering early in Samvat 2082, pick stocks with strong fundamentals rather than chasing short-term momentum.
- Maintain some cash buffer. Given valuations and possible volatility, flexibility is valuable.
- Monitor support levels: if Nifty falls below ~25,600, it could signal caution; likewise, a breakout above ~26,000 may open upside.
Summary & Key Takeaways
- The Diwali Muhurat Trading session 2025 saw a modest positive close: Sensex +0.07 % (at ~84,426) and Nifty +0.10 % (at ~25,868).
- Both indices hit fresh highs during the session but ended up giving back momentum due to profit-taking and sectoral drag.
- Positive drivers: good earnings outlook, festive liquidity, improved global cues, technical optimism and the fresh start of Samvat 2082.
- Caution: valuations are elevated, banking sector lagging, time-limited session and macro/geo risks remain.
- For the year ahead, maintaining balance, focusing on quality, and being alert to support/resistance levels is prudent.
- The Muhurat session, while symbolic, reinforces investor mood rather than determining entire year’s performance.
Closing Thoughts
The Muhurat session of 2025 may not have produced a blockbuster surge, but its significance lies in the tone it set. A stable, mildly positive close suggests that investors are stepping into Samvat 2082 with optimism, yet not blindly so. Markets are acknowledging basic strengths (earnings, domestic demand, global flows) while also being aware of the terrain ahead.
For investors, this is a useful juncture: the starting line is set, meaning the time to strategise is now. The festival mood may add buoyancy, but staying grounded in fundamentals will matter. The fresh highs hit during the session are encouraging — but they also remind us that being selective and disciplined is key, especially when profit-booking is already at play.
As Diwali lights flicker across homes and portfolios alike, the charts show markets are ready to burn brightly — albeit with caution. With Samvat 2082’s journey now begun, the next few weeks will likely reveal whether the positive sentiment translates into sustained momentum or a period of consolidation. Either way, the Muhurat session has done its part: offered a festive start, invited good luck and set the tone. Now, the real task for investors begins.
FAQ for Diwali Muhurat trading in 2025
1. What is Diwali Muhurat Trading and why is it important?
Answer:
Diwali Muhurat Trading is a special one-hour trading session held by the BSE and NSE to mark the beginning of the Hindu financial year, Samvat 2082. It’s considered an auspicious time to invest in the stock market for prosperity and good fortune. The session reflects positive investor sentiment and often sets the tone for the upcoming trading year.
2. How did Sensex and Nifty perform during Diwali Muhurat Trading 2025?
Answer:
During the Diwali Muhurat Trading session 2025, both indices reached new record highs. The Sensex closed around 84,426 and the Nifty 50 ended at 25,868, showing modest gains after initial highs. However, profit-booking by traders trimmed the overall rise by session close.
3. Why did profit-booking occur after the market hit new highs?
Answer:
Profit-booking occurred as investors looked to lock in gains after the recent market rally and festive optimism. With valuations at elevated levels, short-term traders preferred to secure profits. Limited trading time and mild sectoral weakness, especially in banking stocks, also contributed to the correction.
4. What sectors performed well during Muhurat Trading 2025?
Answer:
Technology, metal, auto, real estate, and pharma sectors were among the top performers during the Muhurat session. Stocks like Bajaj Finance, Bajaj Finserv, and Bharti Airtel touched new highs, while the banking sector showed some weakness due to profit-taking and valuation concerns.
5. What is the outlook for Samvat 2082 after Diwali Muhurat Trading 2025?
Answer:
Market experts expect Samvat 2082 to be driven by strong domestic consumption, robust services exports, and healthy corporate earnings. While optimism remains high, investors are advised to stay cautious due to global uncertainties and stretched valuations. A balanced portfolio with quality large caps and selective mid-caps is recommended.
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