Muhurat Trading 2024: JM Financial Reveals Top 3 Diwali Stock Picks for Big Gains
As the festival of lights approaches, the stock market prepares for one of its most auspicious events — Muhurat Trading. Celebrated on the day of Diwali, this symbolic one-hour trading session marks the beginning of the new financial year according to the Hindu calendar. It is a time of optimism, prosperity, and wealth creation, with investors participating to seek blessings from the Goddess Lakshmi, the deity of wealth and prosperity.
This year, JM Financial, a leading investment firm, has handpicked three stocks that they believe hold the potential for significant returns. These picks are based on their robust fundamentals, future growth prospects, and alignment with the market trends as we step into a new financial year.
In this blog, we will explore the significance of Muhurat Trading, delve into the top 3 stock picks by JM Financial, and discuss how these stocks can help you achieve your investment goals in the coming year.
What is Muhurat Trading?
Muhurat Trading is a special, symbolic trading session held every year on the day of Diwali. Unlike regular trading days, it is a one-hour event and holds deep cultural and financial significance. Traders and investors participate with the belief that buying stocks on this auspicious day will bring prosperity and wealth throughout the year.
Here are some key highlights of Muhurat Trading:
| Key Aspect | Details |
|---|---|
| Occasion | Diwali (Festival of Lights) |
| Duration | One-hour session |
| Significance | Marks the beginning of a new financial year |
| Tradition | Belief in auspicious buying for prosperity |
| Investors’ Sentiment | Highly positive and optimistic |
For traders, Muhurat Trading is not just about profits. It is about beginning the year on an optimistic note, making long-term investments, and creating wealth for the future.
JM Financial’s Top 3 Diwali Stock Picks for 2024
JM Financial has analyzed the market trends, corporate performance, and sector outlooks to reveal three stocks that they believe are poised for big gains in the coming months. Let’s dive into each of these top picks.
1. Reliance Industries Ltd. (RIL)
Sector: Conglomerate
Market Capitalization: ₹16.74 trillion
Current Price (as of Muhurat Trading 2024): ₹2,400
Reliance Industries Ltd. (RIL) continues to dominate the Indian stock market, and for good reasons. With diversified business interests across sectors like energy, petrochemicals, telecom (Jio), retail, and green energy, RIL is a powerhouse of growth and innovation.
Why JM Financial Recommends RIL:
- Strong Financials: RIL has shown resilience in earnings, even during economic slowdowns, owing to its diversified revenue streams.
- Digital and Retail Boom: Jio and Reliance Retail continue to grow at a fast pace, contributing significantly to its top line.
- Green Energy Push: Reliance’s commitment to becoming a net-zero carbon company by 2035 with large investments in solar energy and hydrogen offers promising growth potential in the long term.
Growth Outlook:
- Expected to benefit from government policies in the green energy sector.
- Retail and telecom divisions likely to experience rapid expansion.
Key Financials:
| Financial Metric | Value (2024) |
|---|---|
| Revenue | ₹8.5 trillion |
| Net Profit | ₹71,000 crore |
| EBITDA Margin | 23.8% |
Investment Rationale: RIL is a strong long-term bet due to its diversified portfolio, robust earnings growth, and future expansion plans in the green energy space.
2. HDFC Bank Ltd.
Sector: Banking
Market Capitalization: ₹12.5 trillion
Current Price (as of Muhurat Trading 2024): ₹1,620
HDFC Bank, one of India’s largest private sector banks, continues to be a top pick for investors due to its solid financial performance and leadership in the banking sector. With an extensive branch network and a reputation for innovation, HDFC Bank is well-positioned to capitalize on India’s economic growth.
Why JM Financial Recommends HDFC Bank:
- Strong Balance Sheet: HDFC Bank has maintained a low non-performing assets (NPA) ratio, ensuring asset quality.
- Loan Growth: The bank has consistently grown its loan book, driven by retail loans, home loans, and credit cards.
- Digital Push: HDFC Bank has been at the forefront of digital banking innovations, increasing operational efficiency.
Growth Outlook:
- The bank is expected to grow at a faster rate due to rising consumer demand for loans, particularly in the retail and housing segments.
- Increased credit penetration in semi-urban and rural areas will fuel growth.
Key Financials:
| Financial Metric | Value (2024) |
|---|---|
| Total Assets | ₹21 trillion |
| Net Profit | ₹50,000 crore |
| NPA Ratio | 1.23% |
Investment Rationale: HDFC Bank’s consistent performance, strong asset quality, and leadership in the digital banking space make it a safe and profitable investment for long-term investors.
3. Tata Consultancy Services (TCS)
Sector: Information Technology (IT)
Market Capitalization: ₹14.8 trillion
Current Price (as of Muhurat Trading 2024): ₹3,520
Tata Consultancy Services (TCS), India’s largest IT services company, continues to be a major player in the global IT services space. With the ongoing digital transformation across industries, TCS is well-positioned to benefit from increased demand for technology solutions.
Why JM Financial Recommends TCS:
- Global Presence: TCS operates across multiple geographies and sectors, serving diverse clients, from banking and healthcare to retail and telecom.
- Focus on Innovation: TCS invests heavily in cutting-edge technologies such as AI, cloud computing, and cybersecurity.
- Consistent Dividend Payouts: The company has a strong track record of rewarding shareholders with consistent dividends and share buybacks.
Growth Outlook:
- The global digital transformation wave is expected to boost TCS’s revenue as more companies adopt cloud, AI, and automation technologies.
- Expansion in new markets such as Europe and APAC will provide growth opportunities.
Key Financials:
| Financial Metric | Value (2024) |
|---|---|
| Revenue | ₹2 trillion |
| Net Profit | ₹40,000 crore |
| Dividend Yield | 1.5% |
Investment Rationale: TCS is a safe, reliable stock with strong fundamentals and global growth prospects, making it a must-have for long-term investors seeking exposure to the IT sector.
Why Invest in These Stocks During Muhurat Trading?
Muhurat Trading provides an ideal opportunity for investors to make long-term bets on high-quality stocks. The market sentiment is generally optimistic, and investors tend to make decisions with a long-term perspective. The stocks recommended by JM Financial—Reliance Industries, HDFC Bank, and TCS—are not only market leaders but also have strong growth trajectories, making them ideal picks for wealth creation.
Here’s a summary of the potential gains:
| Stock | Sector | Expected Growth (%) in 2024 |
|---|---|---|
| Reliance Industries | Conglomerate | 18-20% |
| HDFC Bank | Banking | 12-15% |
| Tata Consultancy Services | Information Technology | 15-18% |
Key Considerations for Investors
While Muhurat Trading is an auspicious event, it is important to remember that investing in the stock market always carries risks. Investors should approach it with a well-thought-out strategy, focusing on long-term growth rather than short-term gains.
Tips for Investors:
- Diversify: Spread your investments across different sectors to minimize risk.
- Stay Informed: Keep an eye on market trends, economic indicators, and global developments that may impact your investments.
- Risk Management: Use tools like stop-loss orders to protect your investments from sudden market fluctuations.
Disclaimer
Investing in the stock market involves risks, and past performance is not necessarily indicative of future results. The stocks mentioned in this blog are based on research conducted by JM Financial and should not be considered as personalized investment advice. Investors are encouraged to conduct their own research or consult with a financial advisor before making any investment decisions.
Conclusion
Muhurat Trading is more than just a one-hour session—it is an opportunity to start the new financial year with optimism and strategic investments. With JM Financial’s top three picks—Reliance Industries, HDFC Bank, and TCS—you can position yourself for long-term gains. As always, a balanced approach, along with a focus on growth, diversification, and risk management, will help you make the most out of this auspicious trading event.
This Diwali, light up your portfolio with wise investment choices, and let the Goddess Lakshmi bless you with prosperity and success!
Credits
This blog is based on research and stock recommendations provided by JM Financial. Special thanks to the
JM Financial research team for their valuable insights.
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