Sectors To Watch During Diwali – 2023

Diwali is one of the most important festivals in India, and it is also a time for increased economic activity. Many businesses experience a surge in sales during Diwali, and investors often look to invest in sectors that are expected to perform well during this period. In this article, we will take a look at some of the sectors that can benefit during Diwali in 2023.

Sectors To Look Out for This Diwali – 2023

1. Consumer Discretionary Sector

The consumer discretionary sector includes companies that sell products and services that experience high demand during the festival season. The products include gold jewellery, consumer electronics apparel, textiles, etc.

During Diwali, people spend more on discretionary items, such as new clothes, gifts, and home decorations. As a tradition, a few people also buy precious metals like gold during Diwali. This demand for discretionary products can positively impact stocks as well. Some of the well-known stocks that come under this sector include Titan Company Ltd, Kalyan Jewellers, Vedant Fashions Ltd, etc. 

2. Retail Sector

The retail sector includes companies that sell goods and services directly to consumers, such as supermarkets, department stores, and e-commerce companies.

During Diwali, people spend more money shopping for gifts or home decorations. They also tend to buy more food and beverages to prepare for Diwali feasts. This can positively impact the companies that are engaged in supermarkets, retail stores or e-commerce platforms. A few stocks in the retail sector include Avenue Supermarts Ltd, Aditya Birla Fashion and Retail Ltd, Shoppers Stop Ltd, etc. 

3. Hospitality Sector

This sector includes hotels, restaurants, and travel companies. During Diwali, people typically travel to visit family and friends. They also tend to indulge in delicacies during this time of year.

Listed companies that are involved in the business of hotels, travel agencies, etc., can see a positive impact. Some popular companies in this sector are Indian Hotels Company Ltd, Easy Trip Planners Ltd, etc. 

4. Financial Services

During Diwali, people typically spend more money on big-ticket items, such as homes and cars. They also tend to invest money in financial products, such as stocks and ETFs, during Muhurat Trading hour. This is because Diwali is considered an auspicious time for new beginnings, and people want to make investments that will help them achieve their financial goals.

Companies that offer financial services, such as banks, Non-Banking Financial Companies (NBFCs), etc., are likely to show growth this Diwali. The prominent companies in the financial services sector are Bajaj Finance Ltd, HDFC Bank Ltd, etc. 

5. Real Estate

As mentioned above, Diwali is considered auspicious for new beginnings. And people tend to buy new properties or start new offices during this time. In addition to that, at the time of Diwali, many real estate developers offer special discounts and offers to attract buyers.

Besides, many people receive lump sum bonuses and other financial benefits during Diwali, which they use to invest in property. This can increase the business of real estate companies, which can help in the growth of the overall sector. Some popular companies include DLF Ltd, Godrej Properties Ltd, etc. 

Points To Keep in Mind While Investing

While investing in the stock market along with the sectors, you must also analyse several other factors, such as:

• The financials of the company, their past performance and their growth prospects. Ensure that the company has a healthy balance sheet and good management.  
• Your investment objective, risk appetite and investment horizon. Stocks can be a good option for the long-term horizon as long-term investments tend to be less volatile and offer better growth potential.
• Diversify your investment portfolio well to have a good balance of risk and returns.
• Before investing, ensure you have an adequate emergency fund to cover unexpected expenses.

Once you find the right companies that suit your requirements, talk to a financial advisor. Keep an eye on the investment often and adjust the portfolio when needed. 

Conclusion

Apart from the above sectors, there can be several other sectors that can grow. Overall, demand is one of the factors that triggers the stock price. But other factors, such as economic conditions, geopolitical events, etc., must also be considered. It is important to note that investments can carry risk, and it’s crucial to be well-informed and make decisions that suit your financial goals and risk tolerance.

To get started with your stock investment journey, open a Demat Account on Angel One for free. Happy Diwali and Happy Investing!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.