What is Muhurat trading, and how will stock markets perform in Sunday’s session?

Muhurat trading is a special session on Diwali, a significant festival for Hindus, which marks the beginning of the Hindu financial year. The session occurs on a shortened schedule, with trading commencing at 2:20 pm and concluding by 4:00 pm. This year, the Nifty 50 and Sensex indices both closed positively in most Muhurat sessions, with Nifty closing higher 15 times over the past 20 sessions.

Experts anticipate that the session may not bring substantial gains, as it is expected to be a period of low activity, primarily involving token buying for the new year. Tanvi Kanchan, an associate director at Anand Rathi Share & Stock Brokers, suggests that festive sentiment and recent momentum could keep the market's bias positive. However, Ajit Mishra, AVP of research at Religare Broking, believes that consolidation and sectoral rotation following the sharp rally would be beneficial to maintain the positive momentum.

The Indian market appears to be in good shape as it enters the new Hindu business year after facing adversity in 2026. However, the market's success may depend on crude oil prices and the situation in West Asia. Analysts remain optimistic about the long-term prospects of the Indian market, citing potential double-digit earnings growth for FY27 and FY28.