The Indian stock market is set to enter the special Muhurat trading session on Sunday with strong momentum, as benchmark indices look to extend their winning streak to an eighth consecutive session. The Sensex and Nifty 50 have gained around 10 per cent during the rally and are now just about 4 per cent lower for the year, recovering from a period when Indian equities were among the worst-performing major markets.

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While Muhurat trading sessions have traditionally ended on a positive note, investors will be watching whether the current rally has enough momentum to deliver further gains during Sunday's special session.

The session comes amid improving domestic market sentiment, but global uncertainties, geopolitical tensions, crude oil price fluctuations and the monetary policy stance of major central banks continue to pose challenges.

What is Muhurat trading?

Muhurat trading is a special, shortened stock market session conducted every year on Diwali. It coincides with Lakshmi Puja and is considered auspicious by investors and traders, marking the beginning of the new Hindu financial year, known as Vikram Samvat.

Investors traditionally consider the session an opportunity to make symbolic investments and begin the new financial year on an auspicious note.

This year, regular trading during the special session will begin at 2.20 pm and continue until 3.30 pm. The closing auction session will run for another 20 minutes, with trading for the day scheduled to conclude at 4 pm.

What is the market outlook for Samvat 2083?

Indian equity markets are likely to deliver moderate returns during Samvat 2083, according to Kotak Mahindra Mutual Fund's annual Muhurat investment outlook.

In its 'Muhurat Picks Samvat 2083' presentation, the fund house advised investors to prioritise asset allocation and quality stocks rather than chase short-term market momentum.

It recommended maintaining a long-term investment horizon and following disciplined asset allocation to navigate uncertainties arising from geopolitical tensions, crude oil price fluctuations and a hawkish stance by global central banks.

Despite these external challenges, Kotak Mutual Fund highlighted India's economic resilience, citing projected GDP growth of 7.1 per cent in FY27.

The fund house said domestic demand continued to support corporate earnings growth, while high-frequency indicators pointed towards a broad-based economic recovery.

It also noted that large and mid-cap stocks offered relative valuation comfort, with major market indices trading at a discount to their long-term average valuations as of October 31, 2026.

Which mutual funds has Kotak recommended?

For diversified equity exposure, Kotak Mutual Fund identified Kotak Focused Fund, Kotak Multi Asset Allocation Fund and Kotak Multi Cap Fund among its preferred schemes.

For investors looking at thematic opportunities, it highlighted Kotak Manufacture in India Fund and Kotak Banking and Financial Services Fund.

Kotak Equity Savings Fund was among the schemes highlighted for relatively conservative investors.

The recommendations come against the backdrop of mixed performances across market segments since the previous Diwali.

Between October 20, 2025, and October 31, 2026, the Nifty 50 TRI, Nifty Midcap 150 TRI and Nifty Smallcap 250 TRI recorded divergent movements, with mid-cap and small-cap stocks witnessing sharper volatility.

Should investors expect a strong market rally?

Kotak Mutual Fund cautioned investors against expecting exceptionally high returns from the broader equity market during the coming year.

Instead, it advocated an investment strategy centred on quality companies, disciplined asset allocation and long-term wealth creation.

The fund house said investors should avoid chasing short-term market momentum and select mutual fund schemes based on their individual risk profiles.

It also advised investors to consult financial advisers before making investment decisions.

With benchmark indices recovering sharply in recent sessions, Sunday's Muhurat trading will offer an early indication of investor sentiment as the market enters Samvat 2083. However, the broader outlook, according to Kotak Mutual Fund, favours measured expectations and disciplined investing over aggressive bets.