The stock market trading for an hour on Deepawali is known as muhurat trading. It is a significant, age-old custom that has been upheld and followed by the trading community for decades. For Indian investors looking to invest in the US stock market, such a muhurat trading doesn’t take place. “There is no concept of Muhrat Trading in the US market, however, keeping Indian investors in mind, we at Vested have launched the Global International Investing Festival to encourage investors to participate in global investing and, in exchange, they can win up to 49 gram of digital gold with $15 of assured bonus if they initiate a transfer on the Vested platform,” says Viram Shah, Co-Founder and CEO, Vested Finance.
But, for Indian investors timings to trade in stocks both in Indian and US markets coincide with muhurat trading. Muhurat Trading begins at 6.15 pm on October 24, while US stock exchanges open for trading at 7 pm (IST).
Also Read: 100% probability of a recession in the US?
US Stock Market Timings
Pre-Opening Session: 6:30 a.m. ET ( 4:00 pm IST)
Orders can be entered and will be queued until the Opening Auction at 7:00 pm ET
Core Trading Session: 9:30 a.m. to 4:00 p.m. ET (7:00 pm to 1:30 am IST)
Muhrat Trading Timings in India
BSE – Muhurat Trading on Monday, October 24th, 2022
Lakshmi Poojan: 3.30 pm
Pre-opening: 6 pm-6.15 pm
Continuous trading: 6.15 pm -7.15 pm
NSE – Muhurat Trading on Monday, October 24th, 2022
Block Deal Session 17:45 – 18:00 hrs
Pre-Open Market 18:00 – 18:08 hrs
Normal Market 18:15 – 19:15 hrs
Call Auction Illiquid session (Random closure in last one minute) : 18:20 – 19:05 hrs
Closing Session 19:25 – 19:35 hrs
Set up cut off time for Position Limit / Collateral value
Trade modification 18:15 – 19:45 hrs
While the Indian investors trade during the muhurat trading session on Indian bourses, they can also trade on international brokerage platforms and buy US stocks and ETFs. Shares of Apple, Amazon, Tesla, and many more are favourites among Indian investors.
US stocks are in a bear market and because of the lower valuations of some quality companies, they could be on the radar of many Indian investors. Currently, the US economy is facing headwinds because of 40-year high inflation numbers. Also, a US recession in 2023 is foreseen by many analysts. However, established companies are known to get their act together and sail through the tough times.
According to Viram Shah, here are two major reasons why it’s a good time to invest in Nasdaq now.
Two factors will work in favor of the US stocks. First, consumption in the USA hasn’t slowed down. So the more prominent companies will continue to attract consumers despite a general slowdown across industries. This will benefit large-cap and mega-cap companies in generating steady cash flows.
Second, with the rise in uncertainty due to inflation and war in certain developed countries, investors will rush to buy the large-cap and mega-cap operating globally to diversify their portfolio and minimize the overall risk. This is evident as the US Dollar is appreciating against all the major currencies in the world.
Against this backdrop, some investors may find an opportunity in the US stocks, especially Mega cap and large cap stocks given their strong business, financials, and steady cash flows. These companies have sufficient capital to withstand market fluctuations and may be in a better position to weather out the storm.
On the one hand, banks such as JP Morgan and Wells Fargo revealed higher-than-expected credit loss provisions. The better-than-expected quarterly results from Bank of America and BNY Mellon, on the other hand, were positive for investors. The USA’s recent consumer inflation data, though, demonstrated that the Fed still has a lot of work to do to keep inflation under control, and investors are keeping a tight eye on it. The performance of companies such as Netflix, United Airlines, AT&T, and others will help evaluate the demand from a consumption standpoint.