Diwali (Deepavali) is not only a festival of lights — in Indian investing culture, Muhurat trading (the special one-hour trading session on Diwali) is believed to bring prosperity and auspicious beginnings. Many investors symbolically initiate or refresh their stock portfolios during that hour, hoping the “festive mood” carries forward into the new financial year (or new Samvat).
In recent years, brokerages and market analysts
also roll out “festive stock picks” ahead of Diwali,
recommending names they believe have favorable fundamentals, tailwinds, and
upside potential. Below is a curated list of 10 stocks often
featured in such Diwali / Muhurat-season recommendation lists for 2025, along
with rationale, risks, and caveats.
State Bank of India
(SBI)
A frequent choice among “Diwali picks,” SBI is seen
as a stable, diversified banking play with exposure across retail, corporate,
and rural credit. Some brokerages list SBI among their Muhurat 2025 picks,
assigning it a target that implies ~14 % upside.
Rationale: A public
sector bank with deep reach, benefiting from credit growth, financial
inclusion, and systemic reforms (like GST-2.0).
Risks: NPAs, margin
pressure, regulatory risks, interest rate movements.
Mahindra &
Mahindra (M&M)
Also on famous brokerage's Diwali 2025
list. The brokerage expects rural recovery, strong traction in tractors,
and new vehicle launches to drive growth.
Rationale: Strong
presence in rural / farm sector, auto diversification (SUVs, EVs), favourable
cost pass-through in commodity cycles.
Risks: Cyclical business, input cost inflation, EV transition
uncertainties, regulatory emissions norms.
Bharat Electronics
Ltd (BEL)
Featured in some famous brokerages Diwali
picks. BEL is a defence / strategic electronics company. It is well
positioned under India’s emphasis on defence modernization, indigenization, and
increasing government contracts.
Rationale: Strong order
book, strategic importance in defense electronics, export potential, stable
government contracts.
Risks: Delays in contracts, policy changes, competition, pricing
pressure.
Swiggy (or Swiggy’s
listed arm)
Some analysts include Swiggy among their Diwali
picks. As digital consumption and food delivery scale, Swiggy is seen as
part of India’s consumption / tech play.
Rationale: Tailwinds
from rising internet penetration, digital ordering, profitability levers via
efficiencies and scale.
Risks: Burn rate,
competition, regulatory pressures on gig economy, unit economics.
Indian Hotels (Taj
Hotels group)
Also on brokerages Diwali 2025 / Muhurat
picks list. A play on tourism, hospitality recovery, and premium hotel
sector growth.
Rationale: Strong brand,
global reach, margin improvement with occupancy rising post-pandemic, revival
of travel, MICE (meetings/conferences) demand.
Risks: Tourism
downturn, operating leverage, rising costs, macro slowdowns.
VIP Industries
Featured among the Diwali stock picks by some
famous analysts. A luggage/bags brand, which may benefit from renewed demand in
discretionary, travel goods, export markets, etc.
Rationale: Consumer
discretionary, steady brand in luggage & travel segments, possible margin
improvement.
Risks: Consumer
slowdown, input cost pressures, competition from unorganized players.
Azad Engineering
Another favourite pick by brokerages for Diwali
2025. With a strong order book and margin expansion, it is seen as a
capital goods / manufacturing play with upside potential.
Rationale: Healthy order
backlog, capacity expansion, exposure to industrial, infrastructure, and
exports.
Risks: Execution
risk, cyclicality in infrastructure spending, raw material cost volatility.
ICICI Bank
Mentioned in several Diwali stock pick lists as a
favourite stock is ICICI Bank. It is one of India’s premier private banks and
often appears in bullish portfolios.
Rationale: Strong
franchise, good asset quality, digital initiatives, scale advantages,
consistent profitability.
Risks: Competition,
regulatory pressure, credit cycles.
Eternal (Eternal
Industries / similar)
Eternal appears in some brokerages Diwali picks (as
one of last year’s Diwali pick successes) and in our top Diwali
picks. This is more of a mid/small-cap / growth pick with higher
volatility.
Rationale: Past
performance, growth potential, multi-bagger appeal, niche exposure.
Risks: Higher
volatility, liquidity risk, margin swings, sector risks.
Additional Names /
Honourable Mentions
Tata Power ..As per
our samvat 2082 list.
Jio Financial Services .. Similarly
appears in the same set of picks.
GoldBees, Hindustan Zinc, Adani Power — some
brokers include these in Muhurat / Diwali baskets.
Strategy, Risks
& Caveats
Timing &
Approach
Many Diwali picks are oriented for 12-month
(or festival-year / Samvat) horizon, not necessarily for immediate
short-term gains.
Diversification is
key: Balancing safer, large-cap picks (SBI, ICICI, BEL) with growth /
mid-cap plays (Eternal, Azad, Dixon).
Muhurat trading is
symbolic — the actual market impact in that one hour is often minimal. Use it
as a trigger, not a guarantee.
Before investing,
check latest results, balance sheet strength, promoter shareholding, debt
levels, order backlogs, and sector outlook.
Monitor global cues
(e.g. interest rates, commodity cycles, geopolitical risks) which may have
outsized influence.
Conclusion
The ten picks above represent a blend of Banking, Defence, Consumption, Manufacturing, Hospitality, and growth / tech themes
— a typical mix that many analysts favour in Diwali / Muhurat stock baskets.
The idea is not to hit a home run with one stock but to build a diversified
portfolio aligned with India’s structural growth trends.
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
