Indian stocks witnessed a significant surge during the one-hour Muhurat trading on Deepawali evening. The benchmark Sensex rose by approximately 500 points, settling at 65,279 points by 6:51 pm, although some initial gains were later trimmed. Notably, 46 of the Nifty 50 stocks were in the green, with leaders including Coal India, UPL, Infosys, Eicher Motors, and Wipro.
During the auspicious Muhurat hour, investors strategically placed orders for stocks they believed would bring good returns. All Nifty sectoral indices remained firm during this one-hour window, reflecting positive market sentiment.
Deepawali Tradition of Financial Investments
Deepawali, dedicated to worshipping the Goddess of Wealth, is considered an auspicious day for new purchases and financial investments. Many individuals time their investments in precious metals, real estate, electronic items, and automobiles to coincide with this festive occasion.
This year’s Muhurat trading session took place from 6:15 PM to 7:15 PM on Sunday, providing investors with the opportunity to trade and invest similar to regular financial market hours. Orders could also be placed outside the Muhurat hour for execution when the market opened.
Ashishkumar Chauhan, MD and CEO of the National Stock Exchange, emphasized the importance of dealing with registered intermediaries and cautioned against engaging in unregulated products. He advocated for a long-term investment approach, emphasizing the stock market’s role in long-term wealth creation.
Market Outlook and Recommendations for Samvat 2080
Financial advisory firms and stock brokerages have expressed bullish sentiments for the Indian market in Samvat 2080. Motilal Oswal Financial Services recommended focusing on themes such as financials, consumption, discretionary spending, construction, real estate, and high-growth niche sectors like MFIs, electronic manufacturing, and new-age FinTech stocks.
The decision by the US Federal Reserve to maintain the key policy rate and ongoing developments in global crude oil prices, particularly the commitment of key oil exporters to voluntary output cuts, will be closely monitored for their impact on the market.
With multiple states heading into elections in November-December 2023, leading to a potential general election in May 2024, advisory firms anticipate a pre-election rally. In the past five consecutive Lok Sabha elections, Nifty has experienced significant rallies in the six months leading up to the announcement of election results.
Long-Term Positive Outlook
Despite rich valuations in the broader market, Kotak Securities suggested utilizing opportunities arising from market corrections to add quality stocks from a long-term investment perspective. Motilal Oswal Financial Services believes that the overall trend should remain positive in Samvat 2080, expressing optimism for Indian equities from a mid to long-term perspective due to the favorable domestic environment.
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