The Samvat 2072 which ends with Diwali saw a highly volatile year for domestic equity markets with correction of over 10 per cent in January and February. However, benchmark indices recovered smartly from February onwards on account of the expectation of robust monsoon, progress on reforms and favourable global backdrop. The BSE Sensex and NSE Nifty have risen nearly 8 per cent since Diwali last year or in Samvat 2072 till October 21. This year, festival of lights Diwali falls on October 30. With the help of some brokerage houses we bring you some stocks which you can consider this Muhurat Trading. Leading bourses BSE and NSE will conduct special \u2018Muhurat\u2019 trading session on October 30 (Sunday). The \u2018Muhurat\u2019 trading, which is conducted on the auspicious occasion of Diwali, would be held between 6.30 pm and 7.30 pm. Stocks to buy this Diwali (Samvat 2073) Recommendations by Sharekhan 1) State Bank of India: The public sector bank is the largest lender in the country with strong customer relationships, deep reach and size benefits - making it one of the dominant players in Indian banking. Grant of extension to the present chairperson is positive for the lender and it will help it to improve operational efficiencies, ensure leadership continuity and smoothly execute merger of associate banks. It is also better placed due to a higher share of low-cost deposits, a comfortable capital adequacy ratio and improving operating profitability. 2) RBL Bank: The bank has been among the fastest growing private sector banks in the past 5-6 years, with advances CAGR of 61.9 per cent over FY2011-FY2016. RBL Bank has a wide range of products, catering to various segments from corporates to retail. Over the past few years, the bank has invested significantly to improve its systems and processes. As a result, the bank\u2019s cost-to-income ratio has remained high. However, as these investments bring economies of scale, we can expect costs to decline in the coming years, which in turn would help improve RoA and RoE. 3) Kansai Nerolac Paints: Kansai Nerolac Paints (KNPL) is the third largest paint company in India with an overall market share of around 16 per cent in the Decorative Paints segment. The implementation of the Seventh Central Pay Commission recommendations and the introduction of GST (shift from non-branded to branded products) would help boost the urban consumption of paints, while a normal monsoon would lift rural demand for paints. KNPL\u2019s growing thrust on enhancing its presence in the Decorative Paints business and expectations of stable raw material prices in the near term are expected to lift the Operating Profit Margin (OPM) over the next couple of years. 4) Finolex Cables: The core cable business of Finolex Cables (FCL) remains steady with a dominating market share. It is expected to sustain a double-digit volume growth. Also, the Optic Fibre business has bright prospects, given the government\u2019s push for Digital India. Sharekhan believes that FCL will continue to generate strong cash flows and return ratios on a sustainable basis to create shareholders value. 5) Rico Auto: A strong demand outlook from key clients, viz Hero MotoCorp and Maruti Suzuki, led by the improved demand scenario for Two Wheelers (2W) and Passenger Vehicles (PV) segments provides strong visibility on revenue. Apart from the existing clients, Rico is adding new customers (Renault India), which would enable it to outpace the automotive industry growth. Stock Recommendations by Reliance Securities 1) Aurobindo Pharma: Aurobindo Pharma is a vertically integrated pharma company and has strong presence in regulated market such as the US (44% of sales) & Europe (22% of sales). The company has one of largest ANDA pipeline in the US. It has one of the cleanest track records with the US FDA cGMP among Indian pharma companies. Reliance Securities expects the company to deliver a 19-20 per cent CAGR in PAT over FY16-18E. Reduction in capex (Rs6bn in FY18 vs. Rs12bn in FY17) would result in strong FCF generation (Rs2.3bn by FY18E). The brokerage house forecasts RoE and RoCE at 24 per cent & 26 per cent, respectively by FY18E and maintain 'Buy' on the stock with a target price of Rs 981. 2) HDFC: Further improvement in operating performance in coming quarters owing to healthy net intereset income growth and listing of insurance arm, Reliance Securities maintains 'Buy' on the stock with a Target Price of Rs1,560. 3) Pidilite Industries: Incorporated in 1959, Pidilite Industries (Pidilite) is a dominant player in India\u2019s adhesives, sealants and construction chemicals industry with iconic brands like Fevicol, M-Seal, Fevikwik & Dr Fixit. Unmatched market leadership in an under-penetrated category, strong brand equity, robust pricing power and superior management bandwidth would continue to drive growth, going forward. Pidilite\u2019s core strengths continue to remain intact despite near-term headwinds on volume growth front due to weak consumer demand. The stock trades at a price earnings multiple of 41.3x FY17E & 35.4x FY18E earnings. Pidilite currently trades at around 22 per cent discount to Asian Paints\u2019 multiple. Valuing at 10 per cent discount to Asian Paints\u2019 multiples at 38x Sep\u201918, the brokerage house maintains 'Buy' recommendation on the stock with a target price of Rs 832, implying an upside of 17 per cent from current levels. Stock Recommendations by Centrum Broking 1) ICICI Prudential Life Insurance: ICICI Prudential Life Insurance is a JV between ICICI Bank and Prudential Corporation Holdings Ltd, a part of Prudential Group. The company was the largest private sector life insurer in India by total premium and assets under management (AUM) at the end of FY16. At the end of Q1FY17, IPru\u2019s market share, on a retail weighted received premium (RWRP) basis, among all insurance companies in India and among private sector life insurance companies in India was 11.2 per cent and 23.3 per cent, respectively. At CMP, the stock trades at 3.3x its FY16 embedded value per share of Rs 97.1. With one of the highest solvency ratios in the industry (320% in FY16), healthy VNB margins (8% in FY16), and robust growth (gross premium Income up 25% in FY16), Centrum is positive on growth prospects of the company over the long term. 2) Shalimar Paints: Shalimar Paints Limited (SPL) is engaged in manufacturing paints, varnishes, enamels or lacquers. The company operates both in Decorative Paints and Industrial Paints segments. In the Decorative Paints segment its product categories include interior walls, exterior walls, metal surfaces, wooden surfaces and floors. In the industrial paints segment, its product categories include protective coatings, product finishes, packaging and marine. Indian paints industry is expected to grow at a CAGR of 12 per cent over FY17-22 supported by pick up in Decorative paints segment. With strong monsoons and seventh pay commission coming into effect, we expect discretionary spending of Indian consumers to pick up which could be positive for the company. With SPL\u2019s recent launch of new products in the Decorative paints space SPL is in a strong position to tap the demand growth. The company has already turnaround at net profit level with consecutive profits in four quarters. This coupled with a positive change in management, the brokerage house expects SPL to post strong performance going ahead which may lead to re-rating of the stock. Centrum is positive on the stock from long term perspective.