The festive Muhurat Trading session on Diwali, which marks the beginning of the financial new year for the Indian stock market, brought much-needed gains to investors. Following a two-day losing streak, Sensex gained more than 300 points in this symbolic hour-long trading session, while Nifty closed above the significant 24,300 mark, signaling an optimistic start to the new year.
Diwali Gains: Breaking the Two-Day Losing Streak
Held on the auspicious occasion of Diwali, Muhurat Trading is seen as a tradition steeped in sentimentality, attracting investors looking to start the financial year on a positive note. This year, Sensex surged by 635 points at the onset of trading at 6 pm. Though the initial momentum eased, Sensex ended the session with a gain of 335 points, closing at 79,724.12. Nifty followed suit, climbing 94.20 points to settle above 24,300.
Sector-Wide Gains with Auto Stocks Leading
Investor sentiment was buoyed by gains across almost all sectors, with the auto sector seeing a notable uptick. Positive monthly sales figures from major automotive companies drove buying interest in auto stocks. Mahindra & Mahindra led the pack with nearly a 3% gain, while Tata Motors and Maruti Suzuki saw increases of over 1% and 0.6%, respectively.
Selective Declines Amid General Optimism
While most sectors and stocks experienced gains, a few stocks faced slight declines. Notably, shares of HCL, Tech Mahindra, Asian Paints, and ICICI Bank closed in the red. In contrast, NTPC, Axis Bank, Titan, IndusInd Bank, Tata Steel, HDFC Bank, Reliance Industries, and Bharti Airtel registered gains, reflecting the widespread positive sentiment in the market.
Investor Sentiment and the Significance of Muhurat Trading
The optimism surrounding Muhurat Trading is longstanding, as many investors believe it sets the tone for the coming year. This year’s gains have reinforced that sentiment, bringing a positive close to the day and leaving investors hopeful for sustained growth in the coming months.
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