Mumbai: For the second time in 10 years, the BSE Sensex and Nifty 50 indices closed lower during the special one-hour-long trading session on Diwali, which marked the start of the festival of lights.

The benchmark indices fell during the Muhurat trading session, which is a traditional hour-long trading session held at the opening of the Diwali festival. The market was initially expected to see gains due to the positive economic indicators and robust corporate earnings reports.

However, a mix of factors led to the decline in the markets. A report from Kotak Institutional Research suggested that the economic slowdown could be more severe than expected. Additionally, the Reserve Bank of India’s (RBI) decision to keep interest rates high also had an impact on the market sentiment.

The BSE Sensex fell by 104 points or 0.21% during the Muhurat trading session, while the Nifty 50 index declined by 37 points or 0.20%. The broader market indices also showed a similar trend, with the BSE Midcap and Smallcap indices falling by 1.10% and 1.22%, respectively.

Despite the decline in the markets, investors remained optimistic about the long-term prospects of the Indian economy. Many analysts believe that the economic slowdown is temporary and will be followed by a strong recovery.

The Muhurat trading session, which is traditionally held at the opening of the Diwali festival, is an important event for Indian stock market investors. The session marks the beginning of the new financial year and is considered auspicious for buying stocks.

Analysts pointed out that while the economic slowdown has been a concern for some time, it will not have a significant impact on the long-term prospects of the Indian economy. They also noted that the RBI’s decision to keep interest rates high is aimed at controlling inflation and maintaining financial stability.

The Sensex and Nifty 50 indices are expected to continue their upward momentum in the coming days, driven by robust corporate earnings reports and positive economic indicators. However, investors will be keeping a close eye on the RBI’s monetary policy decisions in the coming months.