No pre-Diwali rally now; just global fireworks

Gone are the days when Dalal Street participants used to attribute any jump in the stock market in the run-up to Muhurat trading to a ‘pre-Diwali rally’. As Indian markets increasingly sway to the vagaries of global events, events such as Diwali have more or less become a ‘non-event’ for most participants. So, when the market ran up on Thursday, few were willing to stick their necks out to term this as a rally before Diwali.

Though the Sensex, since 2009, has risen in the 10 trading sessions before Muhurat, returns have been minimal on most of these occasions. Interestingly, the market has fallen after Muhurat trading. This year, Muhurat trading is on October 23 when the market will remain open for one hour. While making a profit on the Muhurat trading day is considered auspicious, many old timers tried to make a quick buck in the run-up too. Though many veterans look back at that period with nostalgia, they agree that it is time to move on.