stockpro Diwali marks the start of the Hindu financial year. The period is considered to be profitable for investments. It is also a day to invest in stocks besides gold and other precious metals. Diwali marks the opening of stock markets for a one-hour session called Muhurta. Unlike normal market hours. Start your investing journey on an auspicious day not only through trading but also through investing. “Muhurta” is perfect for you.
This day has some stock market activity. Muhurta Trading is this special time. During Diwali the stock market will be open for one hour, during which you can invest. The stock exchange will be open for one hour during Diwali, during which investors can place their investments. This particular practice is particularly popular among Gujaratis and Marwaris. The brokers worship the accounts in the stock exchange before Muhurta trading so that goddess Lakshmi is pleased. It has been more than 60 years since BSE was the first Asian stock exchange to carry out ‘Muhurta trading’.
On the day of Muhurta, let us see how investing in the stock market is beneficial.
Long-term potential for strong returns
Stock market investments are expected to yield favorable returns. Stocks offer higher returns over a longer period of time as compared to other asset classes like bonds and fixed deposits. The returns remain impressive even after tax deductions. The key thing is that stocks have a track record of higher returns than other asset classes in comparison to inflation. Apart from this, most companies pay dividends to investors every year. Think of it as an added benefit that you can get while investing in stocks.
An abundance of liquidity
Stock market investments are highly liquid, which is one of their most significant attributes. Your account will be credited as soon as the shares are sold. Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) trade in huge volumes every day, ensuring high liquidity in the stock market. With just a click of a button, new-age investors can buy and sell stocks knowing they can redeem them whenever they want.
Investment flexibility
Stock market investments can also be made through the SIP method. It is particularly helpful to those who are just beginning their investment career. In most cases, people will choose to invest in small amounts, taking into consideration the initial risks involved. In this regard, stock markets are able to provide flexibility. In the event that you are considering investing, your stockbroker can use advanced technology such as artificial intelligence and machine learning. This will help you select stocks based on your budget and preferences. In addition, investing in the stock market does not require a commitment to a specific time frame. By buying on the downside and selling on the rise, you can do this at your own pace and convenience.
Pace benefits the economy
A fast-growing economy directly benefits you from investing in the stock market, as companies’ revenues grow exponentially over time. This is beneficial to you as an investor. Consequently, your stock market investment increases in value.
Investors’ profit margins
Stock market investing yields long-term returns. Streamlined and secure. Its use proves helpful in beating inflation when it comes to targeted investment plans. Capital market trends can be tracked through emerging tech-enabled platforms. Investing can never be too late. This festive season, get started on your investment journey.
Do’s and Don’ts during Muhurta Trading
Make small purchases: At the time of Muhurta trading, make a good investment by making only a small investment. Also, while investing, keep in mind that it can give you better returns in the long run.
Invest in quality stock: In the meantime, invest in quality stocks only. Such stocks whose performance is already good and the company is also doing better.
Avoid big investments: Muhurta trading time is very short, so avoid making big investments during this time. Because this is not a normal session, many times people make mistakes.
Take care and happy investing.
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