Introduction – DIWALI MUHURAT TRADING 2022
On Laxmi Pujan during Diwali, the National Stock Exchange, Bombay Stock Exchange, and Multi Commodity Trading Exchange remain closed as it is a festive holiday. But these exchanges remain open for one hour so people can carry out Diwali Muhurat trading, as it is considered auspicious to make investments or to buy things on this day. This is a 50 years old traditional that is being followed even today. It is considered that investing on this day will bring wealth and prosperity to the investor for the rest of the year as Diwali is the first day of the year according to the Hindu calendar. This year October 24th, 2022, marks the beginning of Samvat 2079. Diwali Muhurat Trading 2022 will be carried out on October 24.
The Stock Market Diwali Muhurat trading time is from 6:15pm to 7:15pm, as specified in a circular from both the exchanges. MCX will also keep trading open at the same time. Equity (cash market) segment, stock futures and options segment, index derivatives segment, currency derivatives segment, and commodity derivatives segment will all be traded in the same time slot on that day. Bulk deals session will take place from 5:45pm to 6pm, while the pre-open session is scheduled for 6pm to 6:15pm.
Diwali Muhurat Trading generally follows a theme. This refers to which sectors people prefer to invest in on this auspicious day. People generally prefer investing in sectors that are growing and do not have any negativity attached to them. This automatically excludes any companies affiliated to addictive substances such alcoholic beverages, tobacco, cigarettes, etc.
Best Stocks for Diwali 2022
The themes that people may prefer this Diwali are banking, FMCG, auto, infrastructure or construction, logistics, hotels, consumer durables, and IT. We have listed some good stocks from each sector below.
Federal Bank is a private sector bank that carries out various banking operations such as Retail banking, corporate banking, and treasury operations. It has more than 1200 branches in the country. Recently, the bank posted its Q2FY23 earnings that reaffirmed their growth and led to a spike in prices. This assures investors of robust growth in the stock.
Britannia Industries in an FMCG company that is involved major in manufacturing and marketing its biscuits, cakes, rusk, bread, dairy products like cheese, yogurt, etc. Some of the popular brands from Britannia are Good Day, NutriChoice, Marie Gold, Bourbon, Milk Bikis, Little Hearts, etc. It also sells an assortment of bread products. It sells its products in the country as well as abroad.
Hero MotoCorp is a company that manufactures and markets two-wheelers and its parts and accessories. Its product range consists of motorcycles and scooters. Some of its popular brands are Splendor, Pleasure+, XPulse, etc. It also provides its special engine oil for its motorcyles and scooters. It has eight manufacturing units, out of which six are in India, one is in Colombia, and the other is in Bangladesh.
UltraTech Cement Limited is a cement company that manufactures and sells an assortment of products required for construction work including Ordinary Portland Cement (OPC), Portland Blast Furnace Slag Cement (PSC), Portland Pozzolana Cement (PPC), white cement, ready mix concrete, specialty concrete, aerated autoclaved concrete (AAC) blocks, waterproofing products, etc. As rains abate, construction activity will see a rise in demand again. This would support prices of the stock.
Lemon Tree Hotels
Lemon Tree Hotels owns and operates business and leisure hotels across the country and the globe. It also engages in project design and management activities and in housing rental services. It owns more than 80 hotels in India and 52 other destinations in the world. As economies open up again and international and local travel resumes, the revenue of the company is expected to rise as it meets demands.
Container Corporation of India Limited operates in the business of handling, warehousing, and transportation across India. It operates through two segments, EXIM and Domestic. Its services include inland transport by rail for containers; managing ports and air cargo complexes; cold-chain business for fruits and vegetables; and developing multimodal logistics support for containerization and trade. With world economies opening up and talks of a Free Trade Agreement between India and UK, this stock is expected to see a surge in prices over time, making it a good investment.
Laurus Labs Limited is a company operating in pharmaceuticals and biotechnology. It manufactures active pharmaceutical ingredients (API) for antiretroviral (ARV), anti-asthma, cardiovascular, oncology, antidiabetics, etc. It is expected to grow as more research and development takes place in the medical field.
Axis Bank operates in the private sector and in engaged in providing various financial products and services. Its operations consist of Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. The bank has more than 4500 branches in the country, 10000+ ATMs, and international offices in eight locations in the world. The bank was previously known as as UTI Bank Limited but changed its name to Axis Bank Limited in July 2007.
Infosys Limited is an information technology firm engaged in consulting, technology, outsourcing, and next-generation digital services. It provides its services to the following segments: Financial Services, Insurance, Manufacturing, Retail, Consumer Packaged Goods, Logistics, Energy, Utilities, Resources, Services, Communication, Telecom OEM, Media, Life Sciences, Healthcare, and others. Its core services include application management services, product engineering and management, proprietary application development services, infrastructure management services, independent validation solutions, traditional enterprise application implementation, and support and integration services.
Havells India Limited is an electrical consumer goods company that manufactures and distributes electrical equipment for domestic commercial, and industrial applications. Their product range includes cable, circuit protection switchgears, electric consumer durables, lighting & fixtures, motors, pumps, solar products, fans, power capacitors, modular switches, water heaters, coolers, personal grooming, air purifier, water purifier, air conditioner, television, washing machine and refrigerator. The above stocks are expected to grow and flourish, leading to capital appreciation and wealth creation. These are the top picks for Diwali Muhurat trading on NSE and BSE.
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