NEW DELHI: Benchmark indices opened on a firm note on once-in-an-year Mahurat Trading on Wednesday, tracking strong trading in European markets, as mid-term elections in US failed to spring any negative surprises.
In this session, whose timings are decided based on planetary positions, traders retain the age-old tradition of executing trades on Diwali, which is also the first day of the Hindu accounting calendar, Samvat, as it is deemed auspicious to start new business activity in the light of diyas and amid colours of rangoli patterns.
On Wednesday, traders were seen selectively buying shares of Infosys, Mahindra & Mahindra and YES Bank in early trade. The three stocks gained 1 per cent each. All the 30-index stocks were trading in the green.
Last year, Muhurat trading was conducted for an hour between 6.30 and 7.30 pm, when the Sensex had declined 194.40 points, or 0.60 per cent, to 32,390.
As trading volumes are generally low in this short session, usually there is not much movement in stocks during the Muhurat trading.
On October 28, 2008, the Diwali day, Sensex surprised many by climbing 5.86 per cent in a single session. The index settled the day at 9,008. For the rest of the years, the index remained in a range-bound.
At least 12 of 20 top money managers on Dalal Street, who participated in the Diwali Survey of ETMarkets.com, hope to see the Sensex much higher by next Diwali, with some projections going up to 40,000-45,000 levels.
Most said the market will hit new highs over the next 12 months, while four felt Sensex and Nifty would be either at the same level or go lower by next Diwali.
The average projection for Nifty target by next Diwali came in at 11,755. The bullish argument is largely based on projections of the Modi governments return to power with a solid majority.