Samvat 2080: Analysts Pick Their Top Stocks To Invest In Diwali 2023

This Sunday will be open for trading but only for an hour to celebrate Diwali, which marks the beginning of the new year, also known as Samvat, according to the Hindu calendar. 

Diwali is considered an auspicious time to start new things, and as such, Muhurat Trading is believed to be ensure a prosperous beginning to the stock market for the year ahead.

Source : Getty

As the country celebrates the festival of lights today, the stock market is also gearing up for its annual tradition of Muhurat Trading to mark the festival. This Sunday will be open for trading but only for an hour to celebrate Diwali, which marks the beginning of the new year, also known as Samvat, according to the Hindu calendar. 

This year’s Muhurat Trading session will mark the beginning of Samvat 2080 and the end of Samvat 2079. Investors believe that trading in the stock market during this time ensures a prosperous start to the new trading year. 

Providing an outlook for the coming year, Neeraj Chadawar, head of research at  Axis Securities, said, “Samvat 2080 will be a very interesting year to watch out for the global economy. We embark on this new Samvat with a narrative marked by ‘Higher for Longer’ interest rates, volatile bond yields, geopolitical conflicts in the Middle East, and fluctuating oil prices. However, on the domestic front, the prospects for the Indian economy appear notably brighter and more promising. In the midst of a volatile global landscape, India remains in a favourable position for growth. According to the estimates of the International Monetary Fund (IMF), the Indian economy is set to be the fastest-growing economy in FY24 and FY25 within the emerging market category. This is poised to be a significant driving force behind Indian equities in the foreseeable future.”

Before commencing trading during the Muhurat Trading today, let’s take a look at some of the top stock picks from analysts for investing in this Diwali. 

Keeping in mind certain factors like companies with higher growth potential with reasonable valuations, higher earnings visibility, proven track record with improving return ratios, and the right mix of domestic focus and export-oriented themes, among others, Axis Securities highlighted nine stocks as their preference for this year’s Muhurat Trading in its investment report.  These include HDFC Bank, TVS Motors, Bharti Airtel, SBI Life, APL Apollo tubes, Astral Limited, KPIT technology, Ahluwalia Contracts, and Jyothy Labs.

TVS Motor Co Ltd

Providing an upside of 34 per cent on the stock, Chadawar noted, in the report, that the export opportunities and market share gains as the major reasons behind choosing TVS Motor. “We continue to like TVSL considering its strong focus on the EV product pipeline ahead of incumbent 2W OEMs, product premiumisation in the ICE category, and growth in export markets. FY24/FY25 to be critical for the company as it executes its EV strategy for the domestic and export markets,” the analyst added about the outlook for the firm. 

Bharti Airtel Ltd

The report estimated an upside of 25 per cent for the telecom operator’s stock. Lauding the company on its digital portfolio, the brokerage said, “The management foresees huge potential for continued strong revenue and profit growth, supported by expanding distribution in rural areas, investments in the network, and increasing 4G coverage. Furthermore, strategic investment opportunities are available in tower sales, minority, and IPO investments in mobile money, among others.”

APL Apollo tubes

Axis Securities projected an upside of 24 per cent for the company. Highlighting the favourable demand environment, the brokerage noted, “The company’s market-creation efforts have brought more orders from railway stations and airports for the heavy structural and coated products at Raipur which has higher EBITDA/t. These new projects provide demand visibility for the company over the next few years.”

HDFC Bank Ltd

Implying an upside of 22 per cent, the brokerage commented on the outlook and said, “We remain confident in the bank’s ability to sustain its growth momentum given the enormous opportunity post the merger in terms of a larger customer base, larger distribution network, and higher cross-sell opportunities to existing customers of HDFC Ltd. Moreover, we believe the current valuations, too, are reasonable and below the long-term average.”

Amongst the other stock recommendations, the brokerage projected an upside of 14 per cent for SBI Life Insurance, 16 per cent for Ahluwalia Contracts Ltd, 17 per cent for Astral Ltd, and 23 per cent for KPIT Technology Ltd and Jyothy Labs Ltd each. 

Sidharth Jain, research analyst at Yes Securities, noted that Samvat 2080 could highlight major opportunities for small and mid-cap businesses. He said, “A new growth cycle is on the horizon for small and mid-cap segments. These segments are poised to outperform the broader market in the coming years. Many of the stocks within this space hold leadership positions in their respective sub-segments, boasting extensive and visible track records.” Based on the analysis, Jain chose five stocks as his top picks for Diwali 2023. These include Sanofi India Ltd, and Credit Access Grameen Ltd, along with others. The complete list of choices given by Jain are listed below.

Top Picks For Diwali 2023

Company Name	Sector	Upside
Arvind Smartspaces Ltd	Real Estate	31%
Credit Access Grameen Ltd	BFSI	20%
Sanofi India Ltd	Pharma	23%
Arvind Fashions Ltd	Retail	29%
CSB Bank Ltd	BFSI	30%

(Disclaimer: Stock investment can be highly risky and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Stock market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.)