The upcoming Samvat begins on the heels of the Sensex gaining 10.6% over seven sessions, marking its strongest pre-Diwali performance in 35 years. Foreign institutional investors heavily supported the run-up by purchasing roughly Rs 49,500 crore in domestic equities on a net basis. Investor sentiment has also been bolstered by a 20% decline in crude oil prices over fewer than two weeks. Brokerages such as SBICAP Securities, PL, and Motilal Oswal suggest focusing on companies backed by solid demand and growing order pipelines.
Key points
The benchmark Sensex secured its best pre-Diwali rally in 35 years by advancing 10.6% acr…: The benchmark Sensex secured its best pre-Diwali rally in 35 years by advancing 10.6% across seven consecutive sessions.
Brokerages highlighted ten top stock picks including Tata Steel, ICICI Bank, Bharat Elect…: Brokerages highlighted ten top stock picks including Tata Steel, ICICI Bank, Bharat Electronics, and Adani Ports for the new year.
Favorable global factors such as diplomatic hopes in West Asia and post-election policy s…: Favorable global factors such as diplomatic hopes in West Asia and post-election policy stability expectations continue to aid market momentum.
Sources checked by our analysis pipeline: 1
NEW DELHI: Diwali season is a holiday for most, but Dalal Street refuses to let the festive mood go to waste!
For one special hour, the trading terminals light up and investors get a shot at starting the new year with a good ‘Muhurat.’
That is the charm of
Muhurat Trading, the annual Diwali session when the stock exchanges open their doors for a brief spell. More than just another trading session, it marks the beginning of Samvat, the traditional Hindu financial year, and is seen as an auspicious time to begin new investments.
The roots of the tradition lie in Diwali's association with wealth and prosperity. During the Lakshmi Puja, devotees worship Goddess Lakshmi, while businesses perform Chopda Puja, offering prayers before their account books, cash boxes and financial records, seeking prosperity in the year ahead.
Over time, this age-old practice found a place on Dalal Street. Investors began buying and selling shares during the special Diwali session as a symbolic way of welcoming the new Samvat.
The ritual may have moved from account books to trading screens, but…
Domestic equities faced significant macroeconomic headwinds over the past year, burdened by an unexpected 54.11% surge in crude oil and a depreciating currency that lagged double-digit rallies in major Asian and European markets. Despite these systemic drags, strong gains in defensive and cyclical sectors like pharma and metals prevented steeper baseline drawdowns. A recent technical rebound above key resistance has sparked optimism for institutional inflows ahead of the upcoming traditional trading cycle.
Market participants are navigating a technical rebound that reclaimed critical long-term moving averages after rebounding from the 22,700–22,800 threshold. However, immediate-term indicators suggest momentum is stretched as indices encounter strong overhead resistance, setting up a potential period of consolidation. Traders must also factor in reduced liquidity and shorter execution windows due to a holiday-shortened calendar.
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