{"id":47146,"date":"2024-10-28T14:12:10","date_gmt":"2024-10-28T08:42:10","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=47146"},"modified":"2025-11-07T14:01:12","modified_gmt":"2025-11-07T08:31:12","slug":"how-stock-market-performs-during-diwali-10-points-to-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/how-stock-market-performs-during-diwali-10-points-to-know\/","title":{"rendered":"How Stock Market Performs During Diwali: 10 Points To Know"},"content":{"rendered":"
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Every year, the Indian stock market<\/a> holds a special Diwali Muhurat Trading session during Laxmi Pujan, marking the start of the Hindu accounting year, Vikram Samvat<\/a>. This session holds cultural and religious significance, especially among business communities such as the Marwaris and Gujaratis, who are looking to initiate new ventures or investments<\/a> during auspicious times. Muhurat Trading is a symbolic event and has become an exciting indicator of market trends.<\/p>\n\n\n\n

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Diwali and Stock Market<\/a><\/div>\n\n\n\n
Investing Lessons from Diwali<\/a><\/div>\n\n\n\n
Diwali Investing Tips<\/a><\/div>\n\n\n\n
Best Financial Diwali Gifts<\/a><\/div>\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

Let\u2019s examine the stock market’s performance during Diwali over the past four years, covering 2020 to 2023.  <\/strong><\/p>\n\n\n\n

Diwali<\/strong><\/td>30 Days Before Diwali<\/strong><\/td>Close on Muhurat Trading Day<\/strong><\/td>30 Days After Diwali<\/strong><\/td>1-Year Return<\/strong><\/td><\/tr>
14th November 2020<\/td>11971.05<\/td>12780.25<\/td>13558.1(\u25b26.1%)<\/td>\u25b29.9%<\/td><\/tr>
4th November 2021<\/td>17691.25<\/td>17916.8<\/td>17196.5(\u25bc4%)<\/td>\u25b240.2%<\/td><\/tr>
24th October 2022<\/td>17327.35<\/td>17730.75<\/td>18484.1(\u25b24.3%)<\/td>\u25bc1.0%<\/td><\/tr>
    12th November 2023<\/td>19,794.00<\/td>19525.55<\/td>20906.4 (\u25b27.1%)<\/td>\u25b210.12%<\/td><\/tr><\/tbody><\/table>
Source: NSE<\/a>  <\/figcaption><\/figure>\n\n\n\n

Stock Market during Diwali 2020: A Year of Recovery and Strong Gains<\/strong><\/h2>\n\n\n\n

During Diwali of 2020, the stock market<\/a> was marked by an unusual combination of factors, primarily driven by the pandemic. Despite an initial decline on Muhurat Trading Day, with the Sensex down 0.96% and the Nifty<\/a> 50 falling by 1.48%, the overall year was highly rewarding for <\/p>\n\n\n\n

investors. <\/p>\n\n\n\n

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Source: <\/strong>NSE<\/strong><\/a><\/strong><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

During Samvat 2077, which began with Diwali 2020, the Indian stock market posted its best gains in 13 years. The Sensex and Nifty gained around 40%, with both indices touching record highs during the year. The Nifty 50<\/a> crossed 18,000 points, and the Sensex breached the 60,000 mark for the first time.<\/p>\n\n\n\n

Some sectors posted massive gains: <\/p>\n\n\n\n

– Metals: Up by 128%<\/p>\n\n\n\n

– Realty: Surged 113%<\/p>\n\n\n\n

– PSU Banks: Rose 93% <\/p>\n\n\n\n

In contrast, sectors like pharma (23%), FMCG (29%), and private banks (30%) saw relatively modest gains. The BSE<\/a> Midcap index jumped by 61%, and the BSE SmallCap index surged by 79% during this period. In other words, the stock market during Diwali ushered in widespread market optimism. <\/p>\n\n\n\n

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Muhurat Trading 2023<\/a><\/div>\n\n\n\n
Samvat 2081<\/a><\/div>\n\n\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

Source: <\/em><\/strong>Livemint<\/em><\/strong><\/a><\/p>\n\n\n\n

Stock Market during Diwali 2021: The First Year of Negative Returns Since 2014<\/strong><\/h2>\n\n\n\n

The stock market during Diwali 2021 marked a shift, as the Indian stock market posted negative returns for the first time since 2014. While the Nifty 50 ended the year down by less than 2%, the domestic market still outperformed global<\/a> indices.<\/p>\n\n\n\n

Global equity markets experienced severe turbulence, with the MSCI Emerging Markets Index falling by 33%, the Dow Jones down by 13%, and the MSCI All Country World Index dropping by 23%. Several global challenges, including inflation<\/a>, disruptions in commodity prices, and lockdowns in China, contributed to this bearish trend.<\/p>\n\n\n\n

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Source: <\/strong>NSE<\/strong><\/a><\/strong><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Although Indian equities posted minor declines, the overall sentiment of the stock market during Diwali was more subdued, as the previous year\u2019s sharp gains limited further upside.<\/p>\n\n\n\n

Stock Market during Diwali 2022: Resilience and Recovery<\/strong><\/h2>\n\n\n\n

The share market<\/a> in Diwali 2022 was a positive event for traders. The Sensex rose by 0.88% on Muhurat Trading Day, setting the tone for the following months.<\/p>\n\n\n\n

Over the next 12 months, the BSE Sensex<\/a> rallied 6.5%, and the Nifty 50 climbed 7.1%. The Small and Midcap indices were real winners, soaring 31% and 26%, respectively. The broader stock market during Diwali outperformed, buoyed by strong fundamentals and a surge in investor sentiment.<\/p>\n\n\n\n

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Source: <\/strong>NSE<\/strong><\/a><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

During Diwali of 2022, the stock market faced several headwinds, including rising interest rates<\/a>, bond yields, and concerns around the Union Budget<\/a>. But in the latter half, the market staged a remarkable recovery. Factors such as FII inflows, strong corporate earnings, and positive macroeconomic indicators contributed to this rebound.<\/p>\n\n\n\n

Stock Market during Diwali 2023: A Positive Start <\/strong><\/h2>\n\n\n\n

The Muhurat Trading session of the stock market during Diwali 2023 saw a continuation of the market\u2019s positive momentum, with the Sensex closing up 0.55% and the Nifty50<\/a> rising by 0.52%. This marked the sixth consecutive year of gains on the Muhurat day, marking an auspicious day for the stock market during Diwali. <\/p>\n\n\n\n

One of the session’s highlights was the record turnover surge, with trades across 2,431 companies reaching a new all-time high. This high trading activity showcased investor confidence and strong participation in the stock market during Diwali.<\/p>\n\n\n\n

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Source: <\/strong>NSE<\/strong><\/a><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Some standout performers on Muhurat day were Infosys and Wipro<\/a>, with Infosys gaining 1.4% and Wipro rising 0.9%. HDFC Bank, Infosys, and Reliance Industries were key contributors to the index gains.<\/p>\n\n\n\n

This promising start to Samvat 2080 has set an optimistic tone for the upcoming year, signaling continued interest from retail and institutional investors.<\/p>\n\n\n\n

10 Key Learnings from Past Performance<\/strong><\/h2>\n\n\n\n

Volatility Around Diwali:<\/h3>\n\n\n\n