Diwali is considered one of the most auspicious festivals in India and the stock market is open for a small window of 75 minutes known as “Mahurat Trading”. It marks the beginning of the Hindu New Year and profits! (no matter how small are booked)
To get a better look at this trading session, we did a technical analysis of how you would have performed had you bought on the day before Diwali and sold on the Mahurat Day. 25 stocks traded on the NSE/BSE were chosen for this analysis.
Suppose you invested Rs. 1,00,000 equally in these stocks and reinvested every subsequent year, the graph below shows how you would have performed.
As is evident from the graph, the returns for the Mahurat trading have gone down (from 7% in 2008 to 0.02% in 2012). With the recent bullish run and the new government, we are actively looking forward to this years Mahurat Day.
Let us know how you did. Wish you Happy Trading.
Data was available only for 2008, 2010, 2011, 2012
The yahoo finance API was used to extract the data
Short term Gain Taxes are not taken into consideration while doing the calculations
The amount is not reinvested for the rest of the day of the year
The closing price is used for the calculation
The stocks were chosen from the Dow Jones India Titans 30