Best Stocks to buy in India Diwali Season
The Diwali season has already begun and the festivities are just around the counter. The festival season which began with the onset of Navratri and ends later in the month of December with Christmas celebrations makes for a whole lot of eating, celebrating with family, shopping, decoration, and much more.
As everyone gets ready to go on a long holiday during the festivals, the excitement for celebrations has already begun. Many employees will get a bonus from their companies and it will be spent on buying new household items, cars, televisions, washing machines, new clothes, and jewellery etc. As a result, there will be a spike in the demand for consumer goods. This highlights the stocks of these companies as there is more demand for their products and services and so it is generally considered that it is a wise decision to invest in stocks at this time.
Although there are several factors to take into consideration before making an investment. In this blog, I am going to talk about some of the best stocks to buy in India this Diwali. But first of all, you need to remember that this list has been compiled keeping in mind the previous trends and data from the past. This may or may not be an accurate representation of these stocks in the future. You should be careful about what trends are currently in the market. Also, timing is very important when you are using a seasonal strategy for investing in stocks. Along with this, you should also use risk management tools and other complementary indicators to increase your chances of success in buying the best stocks to buy in India this Diwali season.
Here is a list of the best stocks to buy in India on Diwali 2022:
1. VIP Industries
VIP industries are the fifth manufacturer of luggage all over the world. They are a pioneer in the Indian luggage market and own some of the well-known brands in the category of handbags like VIP Skybags, Aristocrat, Caprese, and Carlton. The two main points of this company are strong brand presence and market dominance.
During the festival season, people frequently travel to their hometowns to celebrate with their families. They also plan vacations to go to some exquisite locations. And all this creates a spike in the demand for luggage. And so it becomes one of the best stocks to buy in India during this Diwali.
2. Manyavar- Vedant Fashions Ltd
The wedding season begins just after the festival season. This increases the demand for Indian ethnical outfits like sherwani, kurtas, lehengas, sarees, and Kurtis. Manyavar- Vedant Fashions Ltd is the top player in this sector and the company derives a major part of its profits, 80-90 percent, from the menswear brand Manyavar.
There is a lot of product diversification due to the market constraints imposed by brands like Mohey, Tamev, Manthan, and Meebaz. This makes it one of the best stocks to buy in India in 2022.
3. Whirlpool India Ltd
This is a good time for Indian households to buy household items and consumer goods because most of the brands offer a lot of attractive offers on these items. People consider Diwali to be an auspicious time to bring home new appliances in their homes. So, this sector sees a boom in demand during the festive season.
Whirlpool is one of the best companies in India and the largest producer of many household appliances particularly refrigerators and washing machines. We can thus assure you that this company is one of the best stocks to buy in India on Diwali.
4. Asian Paints Ltd
You all have heard these statements in your childhood ‘We will renovate the house during this Diwali’, ‘Let’s paint our homes on this Diwali’ etc. as this is considered to be an auspicious occasion for renovating and decorating your homes and offices. This is one of the prime reasons that the sector sees an uptick during this festive market.
Asian Paints is the most well-known brand in this sector and dominates the market with more than 50% market share. About 80% revenue generated by the company is derived from decorative paints and 20% from industrial paints. So, it can be termed as one of the best stocks to buy in India during this Diwali.
5. Bajaj Finance Ltd
It is one of the most prominent non-banking financial companies in India because of its widespread presence in the country with 3586 branches (1368 urban branches, 2218 rural branches). It has a very strong position in the Indian market and holds about 65% share of the market in the financial shares sector. As most people need loans for buying the stuff, they take credit and so these are one of the most in-demand and best stocks to buy in India.
6. Tanshiq and Kalyan Jewellers
The jewellery brand will be highlighted over the holiday and wedding seasons. The pandemic and the impending holiday season haven’t dimmed the light of the jewellery industry. Brands like Tanishq and Kalyan Jewellers have announced June quarter performance that was better than anticipated. According to experts, if the price of gold declines, demand will increase, driving up the stock price of jewellery companies.
7. Tata Motors and Mahindra
After the epidemic, the Indian automobile industry is rebounding. The two-wheeler and four-wheeler markets in India have seen significant expansion recently. A lot of Indians make large purchases throughout the holiday season, including cars. Tata Motors and Mahindra & Mahindra are a couple of equities to keep an eye out for at this time.
Some Parting Thoughts
Your study should help you decide the best stocks to buy in India during Diwali. Despite an increase in inflation, the Indian consumer has remained strong, reflecting solid demand across all industries. Consumption will increase significantly during the holiday season. So if you are beginning your journey in the field of investment, you have the names of where to begin.