Diwali Stock Market Predictions: Here's How To Invest Rs 10K Per Rs 1 Lakh On Diwali

According to IIFL Securities, the top 10 stock recommendations in 2020 in the large, small, and mid-caps are given below.

(Getty Image)

Mumbai: Investing any amount depends on the risk appetite of the individual. If you are small risk-averse retail investors and want to invest Rs 10,000, we would advise you to follow a diversified asset allocation method. You should have a diversified portfolio built on Diwali day with about 60 per cent allocation to equities, 20 per cent to debt, and 20 per cent to gold. Investing in equities can be done directly or through equity mutual funds. The allocation should have 70 per cent large-cap stocks or large-cap focussed mutual funds to reduce risk. According to Abhimanyu Sofat, Head of Research at IIFL Securities Ltd, Retail investors should always diversify as equity markets are extremely volatile, and one runs the risk o losing capital. Debt and gold provide a good asset diversification. Some of the preferred large-cap stocks recommended by IIFL Securities are Reliance Industries, Infosys, ICICI Bank, HCL Technologies, and Dr. Reddy's Laboratory. Mid-cap and small-cap recommendations include Tube Investments India, Apollo Tyres, Persistent Systems, JB Chemicals & Pharmaceuticals, and Security & Intelligence Services (India). Suggested mutual funds are SBI Magnum Equity ESG und Growth, ICICI Prudential Manufacturing in India and growth, Mirae Asset Health Care und growth, UTI Equity und growth, and Kotak Low Duration und growth. Market Predictions: 15% -20% rise in Nifty and Sensex expected The corporate earnings have done better than expected in the second quarter of this fiscal. The next trigger for markets will be the third-quarter earnings. With consistent government efforts and a Covid vaccine's possibility sooner than expected, the markets will likely continue to rise. "The foreign buying in Indian markets is yet to gain considerable traction. If everything materializes, we may see a 15 per cent - 20 per cent rise in Nifty and Sensex levels by next Diwali," Sanjiv Bhasin, Director, IIFL Securities Ltd, told ABP News. What should you buy? According to IIFL Securities, the top 10 stock recommendations in 2020 in the large, small, and mid-caps are given below.

Stock	CMP (Rs)	Target Price (Rs)	Upside (%)
Reliance Industries	1,850	2,054	11
Infosys	1,063	1,400	32
ICICI Bank	444	540	19
HCL Technologies	814	1,000	23
Dr Reddy's Laboratories	4,877	5,800	19
Mid & Small Caps
Tube Investments of India	668	751	13
Apollo Tyres	143	175	22
Persistent Systems	1,115	1,470	32
JB Chemicals & Pharma	983	1,125	14
Security & Intelligence Services	383	560	46

* CMP as on November 2, 2020