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Diwali Muhurat Trading: HDFC AMC, BEL, SBI, VAML among Monarch's picks; 8th Pay Commission, BSFI key Samvat 2083 themes

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In short

The potential rollout of the 8th Pay Commission is projected to benefit over 2 crore employees and pensioners, lifting demand across automobiles, travel, premium beverages, and consumer durables. Concurrently, the BFSI space continues to exhibit credit and deposit growth exceeding 15% alongside robust balance sheets. Monarch Networth Capital unveiled 13 stock selections to leverage these trends, with Carborundum Universal and CCL Products leading the projected upside potential at 52% each.

Key points

  • Credit and deposit growth above 15% combined with multi-year high asset quality makes BFS…: Credit and deposit growth above 15% combined with multi-year high asset quality makes BFSI a major investment theme.
  • Rising disposable income from central pay revisions is expected to accelerate spending in…: Rising disposable income from central pay revisions is expected to accelerate spending in consumer durables, travel, and automobiles.
  • The brokerage's top recommendations span diverse sectors with upside targets ranging from…: The brokerage's top recommendations span diverse sectors with upside targets ranging from 15% for Bharti Airtel to over 50% for select industrial picks.

Sources checked by our analysis pipeline: 1

Diwali Muhurat trading: Samvat 2082 tested investors’ patience as Nifty 50 and Sensex saw sharp corrections. But historically, such sharp corrections set the base for the market rally and next phase of wealth creation, according to Monarch Networth Capital.

For Samvat 2083, 8th Pay Commission and Banking, Financial Services, and Insurance (BFSI) are likely to remain as key themes for investors to track. Additionally, the brokerage released the list of Diwali stock picks for Samvat 2083 which includes Aster DM Quality Care, Bharat Electronics, Bharti Airtel, Blue Star, Carborundum Universal, CCL Products (India), HDFC AMC, Indegene, Pricol, State Bank of India, TBO Tek, Vedanta Aluminium Metal, and VA Tech Wabag.

Potential approval of 8th Pay Commission in the financial year 2027-28 (FY 28) is likely to put more money in the hands of over 2 crore employees and pensioners and boost consumption.

“Past commissions saw the extra income flow towards automobiles, travel and tourism, premium beverages and consumer durables, and we expect a similar pattern. The premiumization theme could benefit these consumption and discretionary pockets,” read the Monarch report.

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