Diwali Muhurat Samvat 2079: Nifty may hit 19425; housing, consumption, CVs among key investment themes

Muhurat trading 2022: Despite 24 October being a holiday for exchanges due to Diwali, both NSE and BSE will open for one hour on the day to uphold the 5-decade old ‘muhurat trading’ tradition. The muhurat trading is practised to mark the start of the new Samvat 2079. According to the Hindu calendar, this is when the traditional business community opens their books of account. The new Samvat 2079 looks much brighter and more promising, according to Axis Securities as the Indian economy stands in a sweet spot of growth and remains the land of stability against the backdrop of a volatile global economy. 

“We believe the relative outperformance of the Indian market will likely sustain in Samvat 2079 as well and would be led by favourable macroeconomic factors and better-than-historical fundamentals of Indian corporates,” the brokerage said. As Diwali also marks the beginning of the New Year, it is believed that muhurat trading on this day brings and wealth and prosperity throughout the year. Analysts at ICICIDirect believe that Nifty may hit 19425 in next one year. The brokerage is overweight on banks, capital goods/infrastructure, autos. It suggests avoiding sectors having more global exposure like IT, oil & gas and metals. “Given the scenario, we see reasonable opportunities across the market spectrum with key filter being quality,” the analysts said.

Themes for Samvat 2079

According to Axis Securities, housing and banking will be major themes to watch out for in 2023 on account of their improved economic outlook and the pick-up in credit growth. Moreover, affordable housing may even get a further push in the upcoming budget. Consumer space is also witnessing a strong revival and many categories are normalizing to pre-Covid levels with a structural uptick in multiple sub-segments. QSR space is well-placed to deliver superior returns.

The commercial vehicle segment is another theme to be looked at as demand momentum in the CV segment is likely to sustain, and analysts expect the CV cycle to maintain its momentum, driven by the pick-up in economic activities and the government’s focus on infrastructure. Real estate sector also seems promising. “With a pick-up in the real estate and housing demand, the home improvement theme has bolstered and continues to be robust in 2023,” the brokerage noted. Travel & Tourism also stands to be a more promising theme, which has further gained momentum post a pick-up in the vaccination drive, according to the analysts.

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Meanwhile, ICICI Direct in its report advised investors to utilise equities as a key asset class for long-term wealth generation by investing in quality companies with strong earnings growth and visibility, stable cash flows, RoE and RoCE.

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