Banking Shares Lead Indian Market Rally Ahead of Diwali Muhurat Trading Session

Banking and financial services shares were the primary drivers of Friday's market rally, with sectoral indices gaining more than 2%. Consumer durables and pharmaceutical stocks also closed in positive territory. The Nifty 100 outperformed other broad indices, rising over 1%, though gains across the market were uneven.

The National Stock Exchange and Bombay Stock Exchange confirmed that the special Diwali Muhurat trading session will run from 2:20 p.m. to 3:30 p.m., with a block-deal window from 1:50 p.m. to 2:05 p.m. and a pre-open period from 2:05 p.m. to 2:17 p.m. BSE will keep a trade-modification window open until 4:15 p.m. The closing auction will follow, and overall trading will end at 4:00 p.m.

The Multi Commodity Exchange of India announced a parallel schedule for its special Diwali session in 2026, with trading in all commodity and index contracts from 2:05 p.m. to 2:19 p.m. and the regular Muhurat session from 2:20 p.m. to 3:30 p.m. A client-code modification facility will remain available until 3:45 p.m.

Analysts note that the Nifty often opens with a gap-up during Muhurat trading and may trade within a narrow range, projecting a potential move toward 25,100. However, thin volumes and overbought technical indicators could limit further gains. Investors are advised to avoid chasing recent rally gains and to use market corrections for building long-term positions.

Gold prices showed a smaller decline in Delhi compared with international markets. The All India Sarafa Association reported that 99.9% pure gold was priced at Rs 1,46,300 per 10 grams on Dhanteras, down about 20% from its January peak, while global spot gold fell roughly 24% from its record level.

Exchange circulars indicate that trading members may log in between 1:15 p.m. and 1:50 p.m., followed by the block-deal window, pre-opening session, and continuous trading as outlined above.