Markets To Head Higher Next Diwali!

A lot has changed from the previous Diwali to this Diwali for the equity markets. If the mood was optimistic during last year’s festive season, this year the mood is that of cautious optimism. Yogesh Supekar discusses the market behaviour that has been prevalent in the past one year while also focusing on what to expect in the coming year. Alongside, the DSIJ research team shares their top 10 picks for ‘mahurat’ trading

- Yogesh Supekar

The festival of lights i.e. Diwali is always special for Indians, whether they be in India or in any corner of the globe. For investors in the equity markets, Diwali is even more auspicious and every investor knowingly or unknowingly tends to look at the markets with a fresh perspective, hoping to get a fresh insight on the individual portfolio and also on the markets. It is indeed time to take stock of the portfolio and evaluate realistically how the equity portfolio has performed vis-à-vis other asset classes. The key benchmark indices have gone nowhere while delivering negative returns in excess of 6 per cent in the past one year. However, the broader markets have kept equity investors in India rich and shining. The broader market indices reflect the same bearishness as seen in the key benchmark indices but the breadth of the market has been positive this season with several stocks turning out to be multi-baggers. We find that at least 19 stocks have gained by more than 1,000 per cent in the past one year or so since the previous Diwali.

As many as 27 stocks delivered returns between 500 per cent and 1,000 per cent while at least 401 stocks delivered returns between 100 per cent and 500 per cent. This also means that investors had in total 447 stocks to choose from that more than doubled since the previous year’s Diwali. The broader market’s strong performance is further realised when we see that as many as 400 stocks have gained between 50 per cent and 100 per cent since the previous Diwali and at least 433 stocks have gained by more than 25 per cent and up to 50 per cent.