As the most awaited festive season of the year approaches, investors are eagerly looking out for investment opportunities in the stock market. Diwali is considered an auspicious time for investments, and the stock market often sees a surge in market activity. Now lets explore, the Diwali Stock Picks for 2024.
As per recent reports, the stock markets have rewarded investors with impressive returns since Diwali, 2023. Sensex has surged by 25% since then, while other indices such as BSE Midcap and Smallcap have soared by 49% and 47% respectively.
On the day of Diwali, the stock market will be open for one hour for Muhurat trading from 6:15 PM to 7:15 PM.
While the market generally shows a positive momentum during this time, it is important to take a look at a few strategic measures that will help you choose your stock picks in during this auspicious season before you explore the top Diwali picks for this season.
Strategies to Select Good Stocks this Diwali 2024
Here are a few strategies on how to select good stocks this season:
- Researching in advance: With only an hour to trade on this auspicious day, ensure that you’ve thoroughly analyzed both the fundamentals and technicals of your stock picks before the session.
- Target sector leaders: Focus on companies that are leaders within sectors with strong fundamentals and growth potential. Prioritize sectors such as banking stocks, IT Stocks, technology, consumer goods, renewable energy and automobiles.
- Diversify your investments: Don’t put all your eggs in one basket, spread out your investments across different sectors and asset classes. This helps manage risk and enhances the potential to optimize your returns.
Top Diwali Stock Picks for 2024
Reliance Industries:
Reliance Industries Ltd. is a dominant player in both the energy and telecom sectors. The company’s journey of innovation has taken it from being a textile trading firm to one of India’s largest private sector enterprises. Additionally, RIL holds a spot on the Fortune 500 list. In FY2024, the company reported a net profit of ~₹79,020 crore, a 7.3% increase from the previous year.
BEL:
Bharat Electronics Ltd. (BEL) stands as a leading force in the defense electronics and aerospace sectors. From its inception as a small-scale enterprise, BEL has evolved into a critical player in India’s defense manufacturing ecosystem. BEL is recognized for its excellence in indigenous technology. In FY2024, the company posted a net profit of approximately ₹3,116 crore, reflecting a 14% growth compared to the previous fiscal year.
EXCIDE INDS:
Exide Industries Ltd. is a leading name in the energy storage sector, specializing in the manufacture of automotive and industrial batteries. The company’s journey from its inception in 1947 has seen it grow into one of India’s most trusted brands in power solutions. Exide is at the forefront of innovation in battery technology, supplying products to a diverse range of industries, including automotive, telecom, and renewable energy. In FY2024, Exide reported a net profit of approximately ₹920 crore, reflecting its steady growth and dominance in the market.
Coal India:
Coal India Ltd. is a leading player in the energy sector, specifically in coal mining and production. Established with the goal of fueling India’s energy needs, the company has grown into the world’s largest coal producer. Coal India is a key contributor to India’s energy infrastructure and plays a crucial role in powering industries across the country. In FY2024, the company posted a net profit of ~₹28,380 crore, reflecting a solid 4.2% growth from the previous year. As Diwali approaches, Coal India stands out as a top stock pick, given the increasing demand for energy and the company’s stable financial performance, making it a reliable option for investors seeking long-term growth.
ITC:
ITC is an Indian multi-business company that has a dominant standing in sectors including FMCG, Hotels, Paper, Packaging, Agribusiness and IT. Some of its prominent products that you must have heard of are: Sunfeast, Paperkraft, Aashirvaad, Bingo, Yippee, Fiama, Savlon and Engage. ITC’s net profit was ~₹20,422 crores for FY2024, showing rise from the net profits reported in FY2023 at ~₹23,944 crores.
Gujarat Mineral Dev Corp (GMDC LTD)
GMDC Ltd. is a key player in India’s mining and mineral processing industry. The company’s journey of growth and innovation has seen it evolve from a government-owned entity into a leading public sector enterprise. GMDC plays a crucial role in the production of lignite and various minerals like bauxite and limestone, driving India’s industrial growth. In FY2024, GMDC reported a net profit of ~₹1,200 crore, marking a significant year-on-year increase of 15.4%. This impressive growth underscores its strategic importance in India’s mining sector.
Grasim Industries:
Grasim India is the flagship company of Aditya Birla Group and was founded in 1947. It is a global leader across various sectors and is known for producing a wide range of chemicals, fashion yards and fabrics. Some well-known brands under this company include UltraTech Cement, Giza House, Linen Club, and Rensa. The company’s net revenue grew from ₹1,17,627 crore in FY2023 to ₹1,30,987 in FY2024. It EBITDA grew to ₹20,837 crore in FY2024 up from ₹20,478 crore in FY2023.
Britannia Industries:
With more than 130 years of experience in the manufacturing sector, Britannia is known for its iconic biscuits. And now it is a leader in the bakery, snacking, and dairy industries. It operates in 80+ countries and remains a household name in India. In FY24, the company reported a consolidated revenue of ₹16,796 crore compared to FY23s net revenue of ₹16,301 crore. Britannia’s revenue grew at a CAGR of 10% from 2015 to 2024. Demand for its products usually goes up during the Diwali period making it a popular item for gifting.
Asian Paints:
Asian Paints is a leading firm in the painting and coatings industry and has been driving innovation in the sector for more than 75 years. In addition to this, the company has expanded into the home décor space, offering products such as rugs, bath fittings, furniture, and decorative lighting.
Asian Paints has generated a revenue of ₹30,727.7 crore from its products and services, a 2.6% YoY growth. The festive season often boosts its sales and revenues due to increased home activities. The company has also showcased a 0.79% increase in trading volume.
Tata Motors:
Tata Motors Ltd. is a leading player in the automotive industry, known for its wide range of vehicles from commercial to passenger segments. The company’s evolution from a domestic carmaker to a global automobile giant has solidified its position as one of India’s premier auto manufacturers. Additionally, Tata Motors is part of the prestigious Tata Group and boasts a significant global presence, including ownership of iconic brands like Jaguar and Land Rover. In FY2024, the company reported a net profit of ~₹3,005 crore, marking a strong comeback from previous losses.
One reason why Tata Motors is a stock pick for Diwali is its consistent focus on electric vehicle (EV) innovation, making it a leader in India’s rapidly growing EV market.
Titan Company:
Titan started its journey in 1984 and today it operates 2000+ stores and has 16 brands. As a leading lifestyle company in India, Titan has established a strong presence in eyewear, jewellery, and watches segment.
Additionally, the company has also expanded into the apparel market, in terms of Indian traditional wear, wearable tech, fashion accessories, and fragrances. In FY24, its net total income was at net total income was at ₹47,501 crore, which is a 22.8% YoY growth rate. People also shop for more lifestyle items like jewlery, watches, and clothing around Diwali positioning Titan as a considerable stock option for investors.
Trent:
Trent is a key player in the fashion industry, and a part of the Tata Group, has a strong presence with its diverse range of products from apparel, footwear, accessories, skincare, home décor and more. It has popular brands under it such as Westside, Zudio, Misbu, and Zara. With the festive season of Diwali approaching, demand for fashion and home products typically surges, making Trent an attractive investment option. The company has shown consistent growth, reporting a revenue of ₹12,669 crore in FY24 up from ₹8,213 crore in FY23. Trent’s PAT also rose to ₹1,029 crore compare to ₹555 crore last year.
Disclaimer: Please note that the above stocks are provided solely for educational purposes. We do not endorse or recommend any of these stocks without thorough independent research.
Conclusion
Diwali 2024 presents itself as an excellent opportunity for investors to make Diwali stock picks across various sectors. Whether you’re looking to invest in the consumer goods sector, the auto sector, banking sector or even the technology sector, there are plenty of promising options for you to choose from.
By focusing on well-established companies with strong fundamentals and growth potential, investors can look forward to a prosperous Diwali. Remember the key lies in planning, researching, and using this festive season to invest in something good. But if you’re still confused or stumped about what stock to buy head this season over to the best AI based stock market advisor in India – Jarvis Invest – for more information.