Top Stock Picks: Diwali Muhurat Trading 2023

Introduction

Diwali, the festival of lights, is a time of renewal, prosperity, and joy for many Indians. It's also an opportune time for investors to participate in the special trading session known as "Diwali Muhurat Trading." In this blog, we will delve into how Muhurat Trading works, the criteria for picking stocks, and provide a list of promising stock picks for Diwali 2023.

To make the most of Diwali Muhurat Trading in 2023, here are some essential tips on how you can select the best stocks:

Fundamental Analysis: Look for companies that have a good financial status. Look for companies that have a track record of sustained growth and a competitive advantage in their respective industries. Solid growth is built on solid fundamentals.

Technical Analysis: To determine when to enter and when to leave a trade, use the data provided by technical analysis tools. To do this, you need to look at price charts, moving averages, and other important technical indicators. Successful trading decisions can be aided by using technical analysis.

Market News: Stay informed on the most promising industries for the following year. Keep an eye on current industry changes and market dynamics when shortlisting equities for Muhurat Trading. Investing in hot industries is likely to outperform the market. 

Expert Opinions: Financial specialists and reliable sources can be relied on for their insights and research. Expert comments and analysis can provide useful insights into market circumstances and assist in stock selection. 

Top Stocks for Diwali Muhurat Trading 2023

Historically, stocks in sectors such as finance, consumer durables, technology, and hospitality have shone brightly during the Diwali season. Given the present market conditions, our team of stock market specialists has carefully handpicked a portfolio of stocks that you may want to add to your holdings this holiday season. This portfolio has been painstakingly built, taking into account key forthcoming events such as state-level elections in November-December '23 and the General Election in May 2024. It also takes into account a variety of fundamental variables, such as interest rates, bond yields, inflation, geopolitical considerations, and larger economic factors. Let's take a look at this carefully crafted portfolio and see why it's an intriguing option for your Diwali investing.

1) State Bank of India Ltd (SBIN)

The largest commercial bank in India, and one of the most lucrative enterprises, has long been the favorite of savvy investors. The State Bank of India stands out while compiling a portfolio for future wealth development due to its improving balance sheet that displays exponential growth prospects and its healthy Provisional Coverage Ratio (PCR). Experts from Motilal Oswal have pointed out that the bank is a firecracker stock due to its excellent liability franchise and operating profit performance in Tier 1 cities in India, where it holds a 12% market share. 

2) Titan (TITAN)

Titan, a top watch and jewelry producer owned by the Tata Group, is one of Rakesh Jhunjhunwala's favorite stocks. Titan holds over 7% of the market. The company, which once made watches but has now shifted its focus to jewelry, is rapidly growing into related fields including perfumes, accessories, and Indian formal wear because to its tremendous success in those areas. Titan is a must-have stock for your Diwali portfolio, as this expansion is projected to exhibit historic double-digit growth, as forecasted by MO experts.

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3) Mahindra & Mahindra (M&M)

This global automotive manufacturing business based in India has established a substantial foothold in rural India, accounting for around 65% of the market in terms of volume. The increased popularity of SUVs has cemented the brand's status as a top choice among retail customers. Motilal Oswal analysts predict the company will generate a Compound Annual Growth Rate (CAGR) of 16% in Passenger UVs volume from FY23 to FY25, making it an appealing investment to consider.

4) CIPLA (CIPLA)

The pharmaceutical firm's performance in India has been stellar over the years. Now that it can manufacture complicated product lines like inhalers, peptides, injectables, and more, the company is prepared for rapid growth in the US generics market. CIPLA is expected to reach an earnings CAGR of 19% for FY23-25E thanks to its promising future growth and robust existing market, making it a potent company to keep your portfolio in tip-top shape. 

5) Indian Hotels (IHCL)

This Indian hotel company demonstrates strong development potential, particularly in terms of RevPAR growth, which provides solid visibility for the approaching festival season. The company's management expects RevPAR to double in FY24, in line with rising retail demand, a comeback in foreign tourist arrivals, and pleasant vacation weather. As a result, this stock is a great addition to your Diwali portfolio. 

6) Dalmia Bharat (DALMIABHA) 

The cement producer has benefited from rising demand and, especially in the East, higher cement prices. The experts at Motilal Oswal predict that the decline in Operating efficacy and cooling fuel prices would lead to an 11% CAGR growth in volume from FY 23 through FY 36. 

7) Kaynes Technology India (KAYNES)

Kaynes Technology is one of the leading providers of end-to-end and Internet of Things (IoT) enabled integrated electronics manufacturing in India, and the company has seen a 96% compound annual growth rate (CAGR) in its order book between fiscal years (FY) 20 and FY23, with a greater emphasis on Box Build (about 40% for 1HFY24) and PCBA (54%). For the years FY23–FY26, the experts at Motilal Oswal predict a CAGR of up to 41% in revenue, with an adjusted Profit After Tax (PAT) of 56%. A robust order book and an enhanced profit profile, highlighted by a growing proportion of high-value orders, are the primary factors driving these projections.

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8) Raymond (RAYMOND)

Raymond's brand promotion and business operations have benefited from the company's recent efforts to strengthen its leadership team and reorganize its group. The demerger and the capital injection by the promoter have greatly improved the company's financial standing. The company has a promising future since it plans to extend its well-known brands through a capital-efficient franchisee model. These brands include Raymond, Park Avenue, ColorPlus, and Ethnix. 

9) Spandana Sphoorty Financial (SPANDANA)

The NBFC has moved its focus from consolidation to growth, aiming for customer acquisition-driven expansion, with an amazing 3,50,000 borrowers added in 2QFY24, representing a 180% YoY rise. With improved systems in place, the organization is well-positioned to capitalize on the significant opportunities in the MFI industry. Assets Under Management (AUM) are expected to grow at a 34% CAGR from FY23 to FY26, with Return on Assets (RoA) and Return on Equity (RoE) reaching 4.4% and 17%, respectively, making this a hot stock to select for Diwali. 

10) Restaurant Brand Asia (RBA)

Restaurant Brand Asia has significantly improved its products over the last several years by launching new and focused categories that deliver value in order to attract more customers. As a result, Motilal Oswal experts foresee a strong comeback in its business during the next 2-3 years. Furthermore, with an aggressive approach to adding new stores (projected at a 17% CAGR from FY23 to FY26), the brand is well positioned to achieve substantial growth, with an expected revenue and EBITDA Compound Annual Growth Rate (CAGR) of 26% and 45%, respectively, for its India business from FY23 to FY26E.

Also read :- Best Stocks to Buy Under Rs 500 in 2023

Conclusion

Diwali Muhurat Trading is a cultural and financial rite that embodies concepts of hope, prosperity, and new beginnings. This event offers investors a once-in-a-lifetime opportunity to start the new Hindu year on a positive note by investing in well selected Diwali stock picks. 

Effective stock selection is heavily influenced by market and economic factors. As a result, investors should be educated about economic trends, legislative changes, and external influences that may have an impact on Indian markets. With this knowledge, they will be able to make the most of this auspicious occurrence, paving the way for a fruitful year of investing.