Diwali isn’t just about festivities; it’s also an opportunity for investors to set the tone for their financial year.
Muhurat Trading, a one-hour session held during Diwali, offers a symbolic and strategic chance for investors to build wealth. While it’s seen as a time to buy shares for good luck, a well-thought-out plan can help you leverage this opportunity to maximize your portfolio gains.
Here we’ll help you make the most out of Muhurat Trading and talk about the top Nifty 50 stocks you should watch for festive gains. Let’s get started!
Muhurat Trading 2024 is scheduled to take place on November 1, from 6:15 PM to 7:15 PM IST. This one-hour window is considered an auspicious time to trade. Usually, there is a surge in investor activity during this time as they purchase shares as a symbol of prosperity.
While the market generally shows positive momentum during this period, it’s important to take strategic positions in quality stocks for long-term gains. By focusing on strong Nifty 50 stocks, you can set a solid foundation for your investment portfolio.
You should consider following some strategies to make the most of this one-hour session:
Muhurat Trading lasts only for an hour, so it becomes important for you to have your strategy and stock choices ready in advance. You can analyze quarterly reports of companies you’re interested in, review recent news, and understand the growth prospects of each stock before the session begins.
The Nifty 50 includes a list of companies from many sectors like banking, technology, consumer goods, energy, and automobiles. You should identify the sector leaders with strong fundamentals and growth potential to make sure that you make the right choices.
Make sure that you don’t put all your capital into a single sector or stock. By spreading your investments across various sectors, you can balance risk and optimize returns.
While Muhurat Trading is often associated with long-term gains, some stocks might be better for short-term returns. You should diversify between long-term and short-term stocks to ensure that you have opportunities for immediate and future growth.
In this section, let’s look at some of the most promising Nifty 50 stocks for this Diwali:
Reliance Industries Ltd. is a major player in the energy and telecom sector. The company’s innovation has transitioned from a small textile trading business to the largest private sector company in India.
RIL is also a Fortune 500 company. The company reported a net profit of ₹79,020 crore in FY24, up by 7.3% from the previous year.
As a top leader in India's FMCG, Hotels, Paper, Packaging, Agribusiness, and IT sectors, ITC is a multi-business Indian company.
Some of ITC’s well-known FMCG brands include Sunfeast, Paperkraft, Aashirvaad, Bingo! Yippee!, Fiama, Savlon, Engage, and others. The company recorded a net profit of ₹20,422 crore in FY24. The company’s EBITDA stood at ₹24,279 crore, up by ₹23,944 crore in FY23.
Aditya Birla Group’s flagship company, Grasim India was established in 1947. A global leader in various sectors, Grasim is a producer of diversified chemicals, cellulosic fibers, and fashion yarn and fabrics.
Some brands of Grasim include UltraTech Cement, Giza House, Linen Club, and Rensa among others. The company’s consolidated revenue stood at ₹1,30,978 crore, up from ₹1,17,627 crore in FY23. Grasim also recorded an EBITDA of ₹20,837 crore, compared to ₹20,478 crore in the previous year.
The company’s textile products are used as raw materials for clothing items, which are usually in demand during the Diwali season making it a consideration for Muhurat Trading.
With a legacy of manufacturing snacks for over 130 years, Britannia is loved for its biscuits. Established in 1892 as a biscuit manufacturer, the company has expanded its product portfolio and is a leader in the bakery, snacking, and dairy industry.
Operating in more than 80 countries, this household name in India reported a consolidated revenue of ₹16,769 crore in FY24, up from ₹16,301 in the previous year. The company's revenue grew at a CAGR of 10% between 2015 and 2024. The demand for snacks and biscuits shoots up during Diwali, as people buy such items for making hampers for gifting purposes. This makes Britannia a potential stock option for Muhurat Trading.
Asian Paints is a market leader in the paint and coatings industry. Innovating the paint sector for over 75 years, Asian Paints also has its presence in the home decor industry, offering rugs, bath fittings, furniture, decorative lighting, and more.
The company recorded a revenue from the sale of products and services of ₹30,727.7 crore in FY24, a YoY growth of 2.6%. Given the surge in home improvement activities during festive seasons, the company often sees increased sales and revenue, especially during Diwali. Asian Paints also performed well in 2023’s Muhurat Trading as the company gained 0.79% in volume.
Started with a single product category in 1984, Titan has more than 2,000 stores and 16 brands today. A leading lifestyle company in India, Titan has positioned itself as a solid company in the EyeCare, jewellery, and Watches segments.
The company has also expanded its presence in the Indian dress wear, wearable, and fashion accessories & fragrances sectors in India. Titan’s consolidated total income stood at ₹47,501 crore in FY24, a YoY growth of 22.8% from ₹38,675 crore in FY23.
People shop more for lifestyle items like jewelry, clothing, and watches around Diwali, positioning Titan as a considerable stock option for Muhurat Trading.
A part of the Tata Group, Trent is a top player in the fashion industry. From apparel and footwear to accessories, skincare, and home decor and furnishings, Trent has made a mark in the industry with brands like Westside, Zudio, MISBU, and Zara to name a few.
As festivals like Diwali are around the corner, the demand for fashion and home products usually increases rapidly, which makes Trent one of the investment options during Muhurat Trading. Trent has also shown consistent growth with its revenue at ₹12,669 crore in FY24, up from ₹8,213 in FY23. The company’s PAT stood at ₹1,029 crore, compared to ₹555 crore in FY23.
Diwali’s Muhurat Trading offers a unique opportunity to kickstart your investment journey on an auspicious note. By focusing on top-performing Nifty 50 stocks and balancing risks with fixed-income options, you can build a portfolio that sets you up for success. Remember, the key lies in planning, researching, and using this festive session to make strategic, long-term decisions.