Diwali Muhurat Trading: As Diwali 2024 approaches, the Indian equity markets are once again buzzing with excitement, particularly for the much-awaited Diwali Muhurat trading session. This year, the special trading (Diwali Trading or Diwali Muhurat Trading Timing) event is set for November 1, from 6:15 pm to 7:15 pm, offering investors an opportunity to start the new Samvat year on an auspicious note. Chola Securities has recommended five promising stocks for the occasion, aimed at helping investors navigate the market’s momentum for Samvat 2081-2082. These stocks span across key sectors, offering a diverse mix for portfolios in a year that has already seen significant growth in the Indian equity space.
Strong Market Performance Since Diwali 2023
Since Diwali 2023, the Indian equity markets have delivered strong returns. The benchmark BSE Sensex has gained 25% between November 2023 and now, while the BSE Midcap and Smallcap indices have surged by 47% and 45%, respectively. Market sentiment has remained positive, supported by healthy domestic inflows. With this backdrop, Chola Securities’ stock picks aim to capitalize on this market optimism for the upcoming Samvat year.
व्हाट्सप्प चैनल या व्हाटप्प ग्रुप में दिए गए कूपन कोड को डालें -
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Top 5 Stock for Diwali Muhurat Trading
Hindustan Aeronautics Limited (HAL): A Leader in Defence and Aerospace
Hindustan Aeronautics Limited (HAL), established in 1940, is a key player in India’s aerospace and defence sector. With decades of experience in designing, manufacturing, and maintaining aircraft and aerospace systems, HAL has become a cornerstone of the nation’s aviation industry. HAL’s shares recently closed at Rs 4446.85 on October 11, and its order book stands at a massive Rs 1,20,000 crore, including Rs 26,000 crore in new orders for FY25 alone. The company’s book-to-bill ratio of 4x could further rise as it anticipates new orders worth Rs 2,00,000 crore over the next few years. HAL’s strong operating margins are supported by the government’s “Make in India” initiative, as well as cost rationalisation and indigenisation of components.
Ircon International: An Infrastructure Giant
Ircon International, initially established as the Indian Railway Construction Company Limited in 1976, has evolved into a diversified infrastructure company under the Ministry of Railways. The company’s expertise now spans across railways, highways, metro systems, bridges, and tunnels. Ircon’s order book, as of September 30, 2024, stands at Rs 26,784 crore, boasting a book-to-bill ratio of 2.24x. The company has a solid financial footing with a return on equity (ROE) of 17% and a debt-to-equity ratio of 0.44x. The government’s increased infrastructure spending on railways is expected to be a major growth driver for the company. Additionally, Ircon is venturing into renewable energy by setting up a 500 MW solar power plant under the CPSU Scheme Phase-II and has plans to expand into hydropower. As of October 11, its shares were priced at Rs 226.20.
Bank of India: A Resilient Performer in the Banking Sector
Bank of India has shown impressive business growth in FY25, driven by its extensive network of branches and ATMs. In Q1FY25, the bank’s credit-deposit ratio improved by 412 basis points year-on-year to 78.53%. The bank’s loan portfolio in retail, agriculture, and MSME sectors grew by nearly 19% YoY, positioning it well to meet the country’s rising credit demand. Bank of India’s management expects continued credit growth of 13%-14% and deposit growth of 11%-12% for FY25. Shares of the bank closed at Rs 105.50 on October 11, making it an appealing option for those looking to invest in the banking sector during Diwali Muhurat trading.
Life Insurance Corporation of India (LIC): Dominating the Life Insurance Market
Life Insurance Corporation of India (LIC) continues to dominate the Indian life insurance sector, holding over 64% market share in premiums and more than 66% in policies as of Q1 FY25. The company’s solvency ratio increased to 1.98 in FY24, up from 1.87 the previous year, indicating its strong financial health. LIC is undergoing a significant digital transformation through its DIVE program, a partnership with Infosys aimed at enhancing customer service and streamlining operations. LIC is also exploring opportunities to expand into the health insurance market by acquiring stakes in standalone health insurance firms. As insurance penetration in India remains lower than global standards, LIC is well-positioned to grow in this sector. On October 11, LIC’s stock was trading at Rs 949.
Narayana Hrudayalaya: A Growing Force in Healthcare
Narayana Hrudayalaya (NHL), a leading name in super-speciality healthcare, has carved a niche for itself in cardiology, oncology, and nephrology, with a dominant presence in eastern and southern India. Despite being one of the more affordable hospital chains, NHL has outperformed its peers, delivering an impressive EBITDA CAGR of 85% from FY21 to FY24. The company also boasts a PAT CAGR of 52% over the last two years, showcasing its financial strength. NHL has announced an aggressive expansion plan, with Rs 4,000 crore in capex over the next 3-4 years, supported by strong cash flows of Rs 1,000 crore annually. As of October 11, the stock was priced at Rs 1,230, making it a strong contender for investors looking to tap into India’s booming healthcare sector.
Capitalising on Diwali Muhurat Trading Opportunities
This festive season, investors have a great opportunity to make the most of the Diwali Muhurat trading session by considering these top picks from Chola Securities. Whether it’s the aerospace dominance of HAL, the infrastructure expertise of Ircon, the resilient performance of Bank of India, the market leadership of LIC, or the growth potential in healthcare with Narayana Hrudayalaya, each stock offers unique strengths. With a promising outlook for Samvat 2081-2082, these stocks could be excellent additions to your portfolio for the long term as well as for Diwali Muhurat Trading.
