Bringing the Auspicious Hour to London
For many UK-based Indians, Diwali is a time to connect with family, traditions, and the cultural rhythms of home. For those with a keen eye on the markets, this connection extends to Muhurat Trading — the one-hour session on Indian stock exchanges on Diwali evening. This guide helps you navigate the opportunity from a different time zone.
The Time Zone Challenge
The most significant hurdle is the time difference. India follows Indian Standard Time (IST), while the UK is on either British Summer Time (BST) or Greenwich Mean Time (GMT).
- During BST (late March to late October): IST is 4.5 hours ahead of BST. A 2:00 PM IST session would be 9:30 AM in the UK.
- During GMT (late October to late March): IST is 5.5 hours ahead of GMT. A 2:00 PM IST session would be 8:30 AM in the UK.
Check the exact date of Muhurat Trading to determine whether it falls during BST or GMT.
How to Participate from the UK
To trade on the Indian exchanges, you must set up the necessary financial infrastructure. This is primarily for long-term investing, as day trading is generally restricted for Non-Resident Indians (NRIs).
- Open an NRE/NRO Bank Account: You’ll need to open a bank account in India specifically for non-residents. An NRE (Non-Resident External) account is for funds earned abroad, while an NRO (Non-Resident Ordinary) account is for income earned in India.
- Open a Demat and Trading Account: These are required to hold and trade shares electronically. Many Indian broking firms offer services tailored for NRIs.
- Get a PIS (Portfolio Investment Scheme) Letter: This permission from the Reserve Bank of India (RBI) is a mandatory requirement for NRIs to invest in Indian securities on a repatriable basis.
Tips for Your Muhurat Trading Strategy
- Focus on Long-Term Investments: Rather than day trading, use this opportunity to invest in solid, fundamentally strong Indian companies for your long-term portfolio.
- Choose Liquid Stocks: The one-hour session can see increased volatility. Stick to large-cap, high-volume stocks to ensure you can execute trades easily.
- Set up Alerts: With the time difference, set reminders or alerts to ensure you don’t miss the trading window.
- Stay Informed: Follow Indian market news from your location to understand the prevailing sentiment and make an informed decision.
Final Thoughts
Participating in Muhurat Trading from the UK is a way to stay connected to a cherished cultural tradition while making a symbolic investment in your financial future. It’s a unique opportunity to blend the festival spirit of Diwali with your investment goals, no matter how far away you are.