Sensex dips in rare Diwali trade as Samvat 2083 begins

UPDATE - follow-up to A rare red Diwali: Sensex breaks its Muhurat trading winning streak: Indian equities started Samvat 2083 with a rare decline during the 8 November Diwali Muhurat trading session. The benchmark Sensex dropped 28.62 points, or 0.04 percent, to close at 80,999.40 on Sunday. This marks only the eighth time in the past 30 years that the Sensex has ended the special session in the red. The Nifty 50 also fell 0.18 percent to 24,986.40 and has lost 1.1 percent since the previous Samvat year. On Friday, the final session of Samvat 2082, the Sensex had risen 2.2 percent to 81,028 while the Nifty gained 2 percent to close at 25,030.35.

Exchange Events And Turnout

Trading took place during a special window from 2:15 pm to 3:30 pm on Sunday. Trades placed during this session will reflect in investor accounts on Monday, 9 November, marking the first day of the new year. At the National Stock Exchange, managing director and chief executive Ashish Kumar Chauhan rang the opening bell alongside actors and brokers. The exchange auditorium featured idols of both Lord Ganesha and Goddess Lakshmi for the puja, drawing a crowd of over 300 people. Despite the negative close for the indices, equity cash market turnover at the NSE rose to ₹23,374 crore, up from ₹19,714 crore during last year's session.

Market Outlook

Market experts point to mean reversion as a potential driver for recovery, noting that markets have undergone time and price corrections over the past two and a half years. Vaibhav Chugh, chief executive of Abakkus Mutual Fund, stated that earnings have grown around 14 percent over the last two years while market returns stayed low, creating a gap that could support a rebound. Kalpen Parekh, managing director and chief executive at DSP Mutual Fund, added that steady growth in cement demand, power, automobiles, and construction points toward future profit growth. Meanwhile, trader Pallavi Gandhi noted that while recovery signs exist, she expects volatility and is adopting a cautious stance on futures and options trading for the new Samvat year.

Context

Muhurat trading is an old festive tradition in the Indian stock market held on Diwali to mark the start of the Vikram Samvat financial year. Business communities traditionally close old account books and open new ones during this auspicious window. Such special sessions allow investors to make token investments despite the brief trading hours.