A Look At Last Muhurat Trading, Diwali Picks 2024
As the trading commences, the Nifty 50 index opens 121 points higher and closes with 0.52 per cent gain at 19,525, while the Sensex closes at 65,261 points
On Friday evening, on the occasion of Diwali Laxmi Puja, stock exchanges in India will be open for a special one-hour trade, in what is called Muhurat trading.
The exchange platforms, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will be open for trading on Friday from 06 pm to 07 pm. The pre-market will open at 5:45 pm. This is when the Samvat 2081, a Hindu calendar year, will start.
The much awaited once in a year Muhurat Trading which is considered as an auspicious window for trading or investment extended the Indian stocks gains in the last special trading session.
As the trading commenced, the Nifty 50 index opened 121 points higher and closed at 0.52 per cent or 100 points higher at 19,525, while the S&P BSE Sensex traded higher and closed with 0.11 per cent gain at 65,261 points.
Among Nifty stocks, Muhurat trading rewarded the privilege to Coal India, UPL, Infosys and Eicher Motors to trade as the top gainers.
In a Nifty losers category, Britannia, Bajaj Finserv Apollo Hospital went downward to fill the losers gap.
All the 13 sectoral indices traded higher on Muhurat trade with IT, Energy and Metal stocks leading the gains whereas Nifty Realty continued on its gaining route.
The more domestically focussed mid and small-caps indices outperformed benchmark indices with midcap index gaining 250 points or 0.61 per cent, while small-cap index gained 1.14 per cent.
Among Nifty 50 mid-cap stocks, Power Finance extended its gains and and leverage Muhurat trading to rally 3.34 per cent, while United Breweries and SAIL gained around 2 per cent each.
Conversely, MFSL, Federal Bank and Auropharma lost marginally in the Nifty mid-cap index.
Among Individual stocks, CDSL followed its uptrend trajectory and moved 3.54 per cent higher. The firm posted strong numbers recently and notably the Indian demat accounts surge in October is a positive sign for the firm.
Glenmark Pharma lost more than 1.5 per cent due to its weak quarterly results, whereas Allcargo Industries gained 2.34 per cent after posting the quarterly number on Friday.
Notably, the Nifty 50 index has generated more than 11 per cent returns from the last Muhurat trading session which is more than year-to date (YTD) returns of 8 per cent.
Diwali Picks For This Special Session
The domestic stock market witnessed a strong economic environment and liquidity from domestic investors in FY24. The growth momentum in corporate earnings, strong GST collection, capex cycle revival, favourable monsoon and robust domestic demand were positive factors. The benchmark equity index NSE Nifty gained around 25 per cent since Diwali last year. However, the recent surge in crude oil prices, global economic slowdown worry and geopolitical concerns are potential near-term uncertain risks for the overall GDP growth of the economy.
For this year’s Samvat 2081, JMFS Research curated a selection of stocks that should help investors in the mid to long term.
Reliance Industries
The company plans to grow its revenue from Jio and retail businesses in the next 3-4 years. Additionally, its focus on green energy positions it well for the future. Earnings growth momentum to remain strong across segments and we expect 15 per cent PAT CAGR over FY24 to 27E. Our target is Rs 3,500, which indicates an upside of about 28 per cent over the next 6 to 12 months.
Power Grid Corporation of India
With a strong transmission growth opportunity till 2032, PGCI has a robust capex guidance and regulated business model that gives confidence on earnings visibility.
Our target is Rs 383, giving an expected upside of 17 per cent within 6-12 months.
Bajaj Finance
Bajaj Finance has shown consistent growth in assets under management and is focusing on secured loans as per RBI guidelines. It has one of the largest deposit profiles amongst the NBFCs at Rs 63,000 crore. The festive season is also expected to boost demand. Our target is Rs 8,552 an upside of about 18.6 per cent.
Olectra Greentech
Olectra has established a greenfield State-of-the-Art plant in Hyderabad with capacity of 5,000 units/year and scalable to 10,000 units per year. Partial operations have commenced for manufacturing electric buses and other EV products in the new plant. Over the next two fiscals ramp up will be visible. Olectra’s collaboration with BYD, a growing market for electric buses, and a strong order book provide growth potential. The target is Rs 2,200, an upside of 27 per cent.
