Closing Bell: Muhurat Trade kickstarts Samvat 2080 on a firm note; Markets end strong, Nifty above 19,500 and Sensex closes with over 350 points gain, Nifty Small-cap Index hits new 52-week high

Axis Bank, ICICI Bank, HDFC Bank clock steading gains

Benchmark equity indices NSE Nifty 50 and BSE Sensex soared more than a percent each in pre-open session

Greenpanel Industries, Navin Fluorine International, Navneet Education, R R Kabel, Safari Industries, Suntek Realty, and Zee Entertainment Enterprises are the top picks in mid-cap and small-cap segment, from Prabhudas Lilladher for Diwali 2023.

“Indian equities are expected to outperform most other global markets in the face of continued geopolitical uncertainties and relatively higher domestic economic growth. The major themes will be domestic consumption and premiumisation, enabling companies to post strong earnings growth aided by margin accretion. Infra and construction plays are expected to do well as the government’s thrust on infrastructure development is seen to continue, while higher budgetary allocation in rural-focus schemes can help drive a recovery in rural consumption, especially with the upcoming budget being the last one before the general elections. In spite of rich valuations in the small- and mid-cap segments, companies with fundamentally strong businesses and good earnings growth continue to justify their valuation. If US bond yields start coming down by the second half of CY2024, FPIs will come back to the party. Upcoming state and general elections can make the market move sideways. Inflation, interest rate trajectory, and geopolitical tensions will remain the key risks,” said Sunil shah, director at Kambatta Securities.

Hindalco Industries, ICICI Bank, Maruti Suzuki, Max Healthcare Institute, Siemens, and Titan Company are the top large-cap picks, from Prabhudas Lilladher for Diwali 2023.

“The Indian economy currently finds itself in a sweet spot of growth and is well-poised for continued resilience in the face of global challenges. Samvat 2080 will be quite a fascinating year to watch out for the global economy. We embark on this new Samvat with a narrative marked by ‘Higher for Longer’ interest rates, volatile bond yields, geopolitical conflicts in the Middle East, and fluctuating oil prices. However, on the domestic front, the prospects for the Indian economy appear notably brighter and more promising. Amid a volatile global landscape, India remains in a favourable position for growth, which will be a significant driving force behind Indian equities in the foreseeable future. The improvement in the balance sheet strength of corporate India and the much-improved health of the Indian banking system are other positive attributes. They will ensure that Indian equities readily deliver double-digit returns in the next 2-3 years with the support of double-digit earnings growth,” said Pranav Haridasan, MD & CEO, Axis Securities.

“The Indian economy currently finds itself in a favourable growth position and is well-prepared to exhibit resilience in the face of global challenges. As we enter the new Samvat 2080, it promises an exciting year for the worldwide economy. This new period is marked by continuing higher interest rates over an extended period, fluctuating bond yields, geopolitical tensions in the Middle East, and volatile oil prices. On the domestic front, the outlook for the Indian economy appears particularly promising and bright. Despite the turbulence in the global landscape, India is on a favourable growth trajectory, which will serve as a significant driving force for Indian equities shortly. The improvement in the financial health of corporate India’s balance sheets and the significantly enhanced state of the Indian banking system represent additional positive factors. These elements are poised to ensure that Indian equities consistently deliver double-digit returns in the next 2-3 years, supported by substantial double-digit earnings growth,” said Shauryam Gupta, CEO of Rupeezy.

“In the past year, gold has provided opportunities for both bulls and bears, as well as improved value for investors’ money. Bullions’ luster was shortly removed by a major central bank’s aggressive rate hike, but recent developments regarding geopolitical concerns, anticipations of a change in the existing monetary policy attitude, and central banks' gold-buying binge all contributed to a strong support for gold prices. There are undoubtedly certain headwinds that the metal is facing, like expectations of a softer landing, additional rate increases, an ease in geopolitical tensions, and higher real rates that could limit gains in the metal. An ease off in recent Middle East dispute and/or hawkish statements from Fed in the recent policy meeting, gold prices could witness a correction. However, above factors will have a hangover for longer than expected and will keep the party going for gold bulls helping it guide towards our medium target of Rs. 63,000. Similarly, buy on dips stance can be maintained for silver as well. There are many investment avenues for market participant’s w.r.t gold, along with Sovereign Gold Bond (SGB), we also have option of Gold ETF, Digital Gold, physical or trading in the market depending on the investors risk profile.”

– Manav Modi, Analyst, Commodities & Currencies, Motilal Oswal Financial Services.

State Bank of India, Titan Company, Mahindra & Mahindra, Cipla, Indian Hotels, Dalmia Bharat, Kayne Tech, Raymond, Spandana Sphoorty, and Restaurant Brands Asia are the top pics of Motilal Oswal Financial Services for Diwali 2023.

(Source: NSE)

“In light of mounting fundamental tailwinds, the market is poised to sustain its prevailing bullish momentum into Vikram Samvat 2080. Renowned global banks and financial institutions have clearly expressed optimism towards the Indian market. The stage of a bullish scenario is being set by strong corporate performance, overwhelming domestic economic numbers, and growing expectations of the return of the Modi government, known for its pro-business policies. FDI inflows in India stood at US $ 45.15 billion in 2014-2015 which has increased to the highest ever FDI at $83.6 billion in 2021-2022. The bullish sentiment is further bolstered by the speculation that the U.S. Federal Reserve has concluded its rate hike cycle, a factor contributing to the positive market outlook.

Investment in equity and gold should depend on your investment objective, time horizon, and risk profile, but proper asset allocation is require in the portfolio. Gold has been considered a safe-haven asset and used as a hedge against inflation. Gold should be viewed as a long-term investment option rather than a short-term investment. Equity markets have remained volatile both in India and globally but outperformed against other asset class. One should invest in equity from a long-term investment perspective, the equity market can deliver a phenomenal return. Ideally, you should diversify investments in sync with your risk appetite and your original investment plan that you have made for achieving your short and long-term financial goals.”

– Harjeet Singh Arora, Managing Director at Mastertrust.

Muhurat Trading, a time-honored practice with almost five decades of history, carves out a specific trading window on the auspicious occasion of Diwali. This tradition carries profound significance, especially among Hindus who partake in various customs associated with wealth, such as the acquisition of gold jewelry and utensils. The session on Diwali is a multi-phased affair, including the Block Deal session, the pre-open market session, the normal market session, the call auction session, and the closing session. Of these phases, the one-hour normal market session is the focal point and the most bustling. The tradition of Muhurat trading commenced in the Bombay Stock Exchange (BSE) in 1957 and the National Stock Exchange (NSE) in 1992.