On the auspicious occasion of Diwali, the special Muhurat Trading session on October 21st witnessed a positive close for the Indian stock markets. The benchmark BSE Sensex gained 63 points, settling at 84,426, while the NSE Nifty rose by 25 points to close at 25,869, while during this hour-long session, auto, media, and IT sector stocks saw significant buying interest, whereas PSU banks and realty sectors experienced declines.
The Tradition of Muhurat Trading
Typically held in the evening, this year's Muhurat Trading session took place from 1:45 PM to 2:45 PM, while this tradition, spanning 69 years, is deeply rooted in Hindu customs, where a 'muhurat' is considered an auspicious time when planetary alignments are believed to be favorable for new beginnings. Stock market investors view this day as highly propitious for initiating investments, often purchasing stocks as a symbolic gesture of inviting wealth, represented by Goddess Lakshmi.
5 Key Tips for Investors
Investors should keep the following principles in mind for prudent investing:1, while
Maintain Discipline:
Avoid making frequent and drastic changes to your portfolio, as this increases risk. If portfolio adjustments are necessary, implement them in small, thoughtful steps. 2.
Track Investments:
Regularly monitor all your investments across various asset classes, while if you find it challenging to do so consistently, consider seeking assistance from a financial advisor. 3.
Avoid Selling in Loss:
Market fluctuations are inherent to the stock market, while don't panic during downturns. If the company's fundamentals are strong, the market typically recovers in the long term. 4.
Portfolio Diversification:
Diversification is the best strategy to maintain portfolio stability in a volatile market, while spread your investments across different asset classes such as stocks, gold, and other instruments. 5.
Create a Stock Basket:
Investing in a group or 'basket' of carefully selected stocks helps mitigate risk. For instance, if you plan to invest INR 25,000, divide it equally among five different stocks (INR 5,000 each).
