Festive season is quite auspicious in India and investments during Diwali especially is considered very special. From Diwali 2020 to Diwali 2021 stock market performance has phenomenal and it did give returns of almost 45% for traders/investors. Well, that’s infact the only icing on the cake which offers some hope during all the uncertainties.
Below is the candlestick chart of NIFTY 50 with Muhurat trading day 2020 marked on it.
What is Diwali Muhurat Trading?
It is believed that Muhurat trading on Diwali brings in wealth and prosperity throughout the year. Dalal Street welcomes the New Year on a positive note by keeping the stock market operational for 1 hour.
Diwali Muhurat Trading Timing
Pre-market Opening: 6:00 PM to 6:08 PM
Normal Trading Hours: 6:15 PM to 7:15 PM
Closing Session: 7:25 PM to 7:35 PM
Here are some stocks to check out for in a few sector.
Chemical Sector – With global tension with china, Indian chemical companies can outperform the stock market and the sector has sweet spot when it comes to investing as this can be the “Sector of the Decade”.
Aarti Industry (CMP: 948) – A leading manufacturer basic chemicals, agro-chemicals, specialty chemicals and intermediates, which are extensively used in the manufacture of pharmaceuticals, agri-products, polymers, additives, pigments and dyes. Total holdings of Promoters , FII & DII is approximately 71% which is a good sign for investment.
Sumitomo Chemicals (CMP: 386) – A Japanese based strong parent company (Sumitomo Chemical Company Limited (SCC)) founded in 1925 has good hold on agrochemical space globally. Sumitomo chemical is in the business of producing agro chemicals that focuses on crop protection, natural biological control organisms for plants, plant nutrition & plant growth regulators and has a good R&D facilities that keeps the business ahead of competitor.
Apart from these 2 companies there are plenty of good fundamental chemical companies that can be brought on Muhurat trading 2021 such has bodal chemicals, India Pesticides, Tata chemicals, Deepak nitrate, Clean Science & Technology, Tatva Chintan Pharma Chem and much more. There are ‘N’ number of good companies in chemical sector but investing in all companies would be a tedious task, so one can start a smallcase basket and start investing.
Infrastructure Sector – With the launch of PM Gati Shakti master plan infrastructure sector can be a promising sector.
L&T (CMP – 1,890) – The engineering giant company needs to explanation. The company has good capex and has a special place when it comes to develop a big infrastructure project in the country. Hydrocarbon business can start performing well in coming times. One can buy this stock at all the dips.
Engineers India (CMP – 71.4) – Government owned company can play a big role in developing the infrastructure of the country . President of India is the largest share holder of the company (51% holding as of Sept-21). Privatisation of the company could be possible and hence good returns can be expected.
A few other stocks to follow – KNR Construction, HG Infra, Action Construction Company. Apart from these cement sector could be outperforming as cement is the basic need in construction.
Realty Sector – The sector has given multi-year breakout and has given good returns post breakout.
In addition to this, here are some stocks to watch out for in the Nifty Realty index
DLF, Godrej properties, Oberoi realty, prestige, Sobha, India Bulls real estate.
Miscellaneous Stocks to Explore
Route Mobile (CMP – 1975) – It is a Cloud Communication Platform provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO). Their product portfolio includes smart solutions in Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization.
GMM Pfaudler (CMP – 4697) – It is the largest manufacturer of glass-lined equipment inIndia. They also manufacture Wiped Film Evaporators, Agitated Nutche Filters, Hi efficiency Mixing systems, PTFE lined equipment. The company is also a manufacturer and dealer of various types of structural steel works, industrial machinery and glass lined chemical vessels and storage tanks in both horizontal and vertical designs
Bhansali Engineering Polymers (CMP – 179) – It is engaged in manufacturing and sale of ABS Resins, AES Resins, ASA resins, SAN resins and their alloys with other plastics in the Indian market. Its customers include leading companies dealing in Automobiles, Home Appliances, Electronics, Healthcare and Kitchenware.
ETF as an Option
CPSE ETF (CMP: 29.85) – CPSE ETF is an exchange-traded fund that invests in 12 state-owned companies (PSUs) that are a part of the Nifty CPSE index. While the government is in the process of privatization, CPSE ETF would be the best to invest in.
Constituents of CPSE ETF
|Sr No.||Company Name||Sector||CMP|
|1||National Thermal Power Corporation Ltd. (NTPC)||Power||137|
|2||Powergrid Corporation of India||Power- transmission||184|
|3||Oil & Natural Gas Corporation Ltd. (ONGC)||Oil exploration||152|
|4||Coal India Ltd||Mining & Minerals||169.75|
|5||Bharat Electronics (BEL)||Electronics||200|
|6||NMDC Ltd||Mining & Minerals||142|
|7||Oil India||Crude Oil & Natural Gas||217|
|8||NHPC Ltd||Power- transmission||30.4|
|9||NBCC India Ltd||Realty||46.2|
|10||SJVN Ltd||Power- transmission||28.6|
|11||NLC India Ltd||Power- transmission||64|
|12||Cochin Shipyard Ltd||Ship building||356|
May this festive season give you exponential returns.
Happy Diwali & Happy Trading!
Disclaimer: The author is not SEBI registered and is sharing his personal opinion. Before investing in any of the stocks/ETF please consult your financial advisor.
Author Bio: Rishit Dedhia, a full time digital marketer who has keen interest in researching stocks in his free time.