The country is all set to celebrate Diwali, but Dalal Street has already been lit up with a firecracker performance in Friday's (October 17) session. The Sensex closed at 83,952.19, soaring 484.53 points, or 0.58%, while the Nifty50 rose 124.55 points, or 0.49%, to 25,709.85. Investors are keeping their fingers crossed about the upcoming Muhurat trading on October 21, 2025.  

According to historical trends, indices have risen during the Diwali trading hours—between 0.40% and 1%. Analysts expect the upward trend to continue this year as well. Fundamental trends such as GST 2.0 reforms, strong Q2FY26 performances, and a cumulated 100 bps rate cut since the beginning of the year would be key triggers. 

How have indices performed in the last five Muhurat sessions? 

The benchmark Sensex and the Nifty, along with broader indices, have ended in the black, reflecting an upbeat market mood.

Samvat 2077 (November 14, 2020): The Sensex closed 195 points, or 0.45%, higher at 43,638, and the Nifty50 at 12,771, up 60.3 points, or 0.47%. The Nifty Next 50 closed up 0.45%, the Nifty Midcap 100 surged 1.46%, and the Nifty Smallcap 100 jumped 1.57%.

Samvat 2078 (November 4, 2021): The Sensex settled 296 points, or 0.49%, higher at 60,067.62, while the Nifty50 was at 17,916.8, up 88 points, or 0.49%. The Nifty Next 50 rose 0.53%, the Nifty Midcap 100 0.79%, and the Nifty Smallcap 100 1.3%.

Samvat 2079 (October 24, 2022): The Nifty50 closed at 17,730.75, up 155 points, or 0.88%, and the Sensex closed at 59,831.66, rising 525 points or 0.88%. The Nifty Next 50 was up 0.32%, the Nifty Midcap 100 rose 0.50%, and the Nifty Smallcap 100 surged 0.93%.

Samvat 2080 (November 12, 2023): The Sensex closed at 65,259.45, up 355 points, or 0.55%, and the Nifty50 settled at 19,525.55, up 100 points, or 0.52%. The Nifty Next 50 closed above by 0.48%, the Nifty Midcap 100 by 0.61%, and the Nifty Smallcap 100 jumped 1.4%.

Samvat 2081 (November 1, 2024):  The Nifty50 closed at 24,304.35, up 99 points, or 0.41%, and the Sensex settled at 79,724.12, up 335 points, or 0.42%. The Nifty Next 50 rose by 0.70%, the Nifty Midcap 100 by 0.68%, and the Nifty Smallcap 100 soared by 1.03%.

How have year-on-year trends fared?

A deep dive into the year-on-year performance of Muhurat trading gives an overview of how markets have fared since the sharp decline due to the Covid-19 pandemic. On the Muhurat trading day of 2021, the Sensex and the Nifty rose by 37% and 41%, respectively, whereas the broader markets outperformed, with the Nifty Midcap 100 and the Smallcap 100 surging between 70% and 80%. 

On the other hand, in the 2022 special trading session, the Sensex and the Nifty50 saw minor corrections of up to 1% in a year. The Nifty's midcap segment, too, saw corrections of up to 3%; it was the smallcap basket of the NSE that saw a decline of up to 18%. This decline was due to rising inflation trends and global headwinds, with the Russia-Ukraine war affecting investor sentiment. 

But market mood was uplifted in 2023 and 2024, with all indices again trading in the positive terrain, with broader markets emerging as champions above their benchmark peers, all soaring in the range of 35% to 40%. Meanwhile, the Sensex and the Nifty 50 gave weaker year-on-year returns, both rising by 10% in 2023, and around 24% in 2024. 

This year, the National Stock Exchange and the Bombay Stock Exchange have decided to hold the token trading session between 1:45 pm and 2:45 pm, departing from the usual evening timings. Here's what in store:

• Block deal session: 1:15 pm to 1:30 pm

There will be regular trading session on Monday (October 20). Markets will be closed on Wednesday (October 22) on account of Balipratipada.