Muhurat Trading 2026: Sensex and Nifty End Diwali Session in the Red for the First Time in Nine Years

India’s stock markets broke a nine-year Diwali tradition on Sunday. For the first time since 2017, both the Sensex and the Nifty ended the special Muhurat Trading session in the red, as investors sold shares to lock in profits after a strong rally.

The BSE Sensex fell 28.62 points, or 0.04 percent, to close at 80,999.40. The NSE Nifty 50 slipped 43.95 points, or 0.18 percent, to finish at 24,986.40 — below the psychologically important 25,000 mark.

The fall was small in points. But it ended a winning run that had lasted eight straight Diwali sessions, from 2018 to 2025, and it came after one of the strongest weeks Indian markets have seen in years.

This article explains what Muhurat Trading is, what happened in the session, why the markets fell, and what investors should watch next.

What is Muhurat Trading?

Muhurat Trading is a special stock market session held every year on Diwali, the Hindu festival of lights. It marks the start of the new Hindu accounting year, known as Vikram Samvat. This year, markets entered Samvat 2083.

The session is short and symbolic. Trading runs for about an hour, and many investors place small, token trades because the time is considered auspicious — lucky — for new beginnings. Brokers, traders and investors across India treat it as a ritual as much as a trading day.

This year, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) held the session on Sunday, 8 November, from 2:20 pm to 3:30 pm Indian time. The commodity exchange, MCX, traded in the same window.

For the second year in a row, the session was held in the afternoon rather than the traditional evening slot linked to the Lakshmi Puja prayers.

The BSE, based on Dalal Street in Mumbai, was established in 1875. It is the oldest stock exchange in Asia and the tenth oldest in the world.

What happened in the session

The session started with cheer. Both benchmark indices opened higher, extending a rally that had already run for seven straight sessions.

The Sensex jumped more than 400 points early in the session to touch 81,406. The Nifty opened at 25,109.40, up about 79 points from Friday’s close.

But the early gains did not last. Selling pressure built up as the session went on, and by the close both indices had given back everything — and a little more.

The Sensex closed at 80,999.40, down 28.62 points from Friday’s close of 81,028.02. The Nifty settled at 24,986.40, down 43.95 points from Friday’s 25,030.35.

In other words, the market opened with a celebration and closed with a small loss.

The first red Muhurat session in nine years

The loss ended a long winning streak. Before Sunday, the Sensex and the Nifty had closed higher in every Muhurat Trading session since 2018 — eight sessions in a row.

The last time both indices ended the special session in the red was in October 2017, when the Sensex fell 0.6 percent and the Nifty dropped 0.63 percent. Before that, they had also closed lower in 2016.

Overall, the indices have now closed in the red in only three of the past eleven Muhurat sessions. Last year, on 21 October 2025, the Nifty had risen 0.10 percent and the Sensex had gained 0.07 percent.

The small size of Sunday’s fall is worth noting. The Sensex lost just 0.04 percent and the Nifty 0.18 percent. This was not a crash. It was a quiet end to a long run of festive gains — but for traders who watch the tradition closely, even a small red close carries meaning.

Why did the markets fall?

The main reason was profit booking. After a sharp rally, many investors decided to sell some shares and keep the gains.

The Nifty had risen more than 10 percent in the seven sessions leading up to Sunday. The markets had also just recorded their strongest weekly gains in nearly six years. When prices rise that fast, traders often sell to lock in profits, and that selling can pull prices down.

Analysts quoted in Indian media pointed to weakness in banking and financial stocks in particular, as traders sold shares in those sectors after the recent rally.

Some stocks still rose. Divi’s Laboratories surged about 7 percent in the session, and Sun Pharmaceutical Industries was among the biggest gainers in the Sensex, closing up 2.96 percent. But the gains in individual stocks were not enough to lift the overall indices.

It is also worth remembering that Muhurat sessions are short — just 70 minutes of trading. In such a small window, a modest wave of selling is enough to turn the whole session red.

What the red close does — and does not — mean

A red Muhurat session does not predict what will happen next. The session is symbolic, and its result has no special power over the market. In past years, red Muhurat sessions have been followed by both good and bad years for stocks.

What matters more is the bigger picture. Indian markets enter Samvat 2083 after a strong run. The question for investors is whether the rally can continue, or whether the profit booking seen on Sunday is the start of a pause.

Global markets have been volatile too. Wall Street has swung sharply in recent weeks as investors worry about high prices for artificial intelligence stocks, and Asian markets have felt the same pressure. Pakistan’s own stock market, the PSX, also ended a strong week with a sharp fall on Friday, dropping 1,493 points in a single day even as it finished the week up 4.5 percent.

For small investors, the lesson of Sunday is a familiar one: markets rarely move in a straight line. Even in a rising market, there are days when prices fall, and a short festive session is no exception.

What happens next

Regular trading resumed on Monday, 9 November. The markets will be closed on Tuesday, 10 November, for Diwali-Balipratipada, according to the NSE holiday calendar.

In the coming days, investors will watch a few things:

First, whether the rally resumes. The Sensex and the Nifty both gave up early gains on Sunday. If buying returns on Monday, the red Muhurat close will be remembered as a small pause. If selling continues, it may signal that investors want a longer break after the rally.

Second, global markets. Indian stocks do not move alone. What happens on Wall Street and in other Asian markets, along with the price of oil and the value of the rupee, will shape the direction of the Sensex and the Nifty.

Third, company results. The quarterly earnings season is under way. Strong results from big companies can lift the market, while weak results can push it down.

Fourth, the festival season. Diwali spending is a key test of consumer demand in India. Strong sales of cars, phones, gold and homes during the festival would support the economy — and the stock market.

For now, the nine-year winning streak is over. The new Samvat has begun with a small loss. Whether that turns out to be a warning or just a footnote will depend on what the market does in the weeks ahead.

Frequently asked questions

What is Muhurat Trading?

Muhurat Trading is a special, short stock market session held every year on Diwali to mark the start of the new Hindu accounting year, Vikram Samvat. Investors believe the time is auspicious for trading and for starting new investments.

When was the Muhurat Trading session in 2026?

On Sunday, 8 November 2026, from 2:20 pm to 3:30 pm Indian time. The session marked the beginning of Samvat 2083.

How much did the Sensex and Nifty fall?

The Sensex fell 28.62 points, or 0.04 percent, to close at 80,999.40. The Nifty 50 fell 43.95 points, or 0.18 percent, to close at 24,986.40.

When was the last time Muhurat Trading ended in the red?

In 2017, when the Sensex fell 0.6 percent and the Nifty fell 0.63 percent. The indices had risen in all eight Muhurat sessions from 2018 to 2025.

Why did the markets fall?

Mainly profit booking. The Nifty had risen more than 10 percent in seven sessions before Sunday, and investors sold shares to lock in gains. Weakness in banking and financial stocks also pulled the indices down.

Does a red Muhurat session mean the market will fall further?

No. The session is symbolic and short, and its result does not predict future market direction. What matters more is company earnings, global markets, oil prices and the wider economy.

Are Indian markets closed after Muhurat Trading?

Regular trading resumed on Monday, 9 November. The markets are closed on Tuesday, 10 November, for Diwali-Balipratipada.

Conclusion

Muhurat Trading 2026 will be remembered as the year the nine-year winning streak ended. The Sensex and the Nifty opened with strong gains, then slipped into the red as investors booked profits after a powerful rally.

The loss was small — less than a fifth of one percent on the Nifty — but it broke a tradition that had held since 2018. As Samvat 2083 begins, the question is not what happened in 70 minutes of festive trading, but whether the rally that carried markets to the festival can keep going.

Sources

• The Economic Times: “Sensex, Nifty end Muhurat Trading session in red for first time in 9 years. Are the bulls losing steam?” — https://economictimes.indiatimes.com/markets/stocks/news/sensex-nifty-end-muhurat-trading-session-in-red-for-first-time-in-9-years-are-the-bulls-losing-steam/articleshow/135656643.cms
• The Financial Express: “Muhurat Trading: Sensex, Nifty break 9-year Diwali streak; why the rally fizzled” — https://www.financialexpress.com/market/muhurat-tradingsensex-nifty-break-9-year-diwali-streak-why-the-rally-fizzled-4379715/
• NDTV Profit: “Rare Diwali Dip: Sensex, Nifty Close Lower In Muhurat Trading For First Time In Nine Years” — https://www.ndtvprofit.com/markets/rare-diwali-dip-sensex-nifty-close-lower-in-muhurat-trading-for-first-time-in-nine-years-12300163/amp/1
• Outlook Business: “Profit-Booking Drags Indices Down in First Red Muhurat Trading Session in 9 Years” — https://www.outlookbusiness.com/markets/profit-booking-drags-indices-down-in-first-red-muhurat-trading-session-in-9-years
• Oneindia: “9-Year Diwali Winning Streak Ends! Sensex, Nifty Lose Early Gains In Muhurat Trading 2026” — https://www.oneindia.com/business/9-year-diwali-winning-streak-ends-sensex-nifty-lose-early-gains-in-muhurat-trading-2026-8254515.html

This article is for general information and education only. It is not legal or financial advice.