Diwali, the festival of lights, is a time of celebration, hope, and renewal in India. Traditionally, this vibrant festival has been associated with new beginnings, and many investors see it as an opportunity to start fresh by investing in the stock market. Historically, stocks often experience a boost during the festive season, driven by factors such as increased consumer spending, positive sentiment, and the belief in prosperity and good fortune that accompanies the festival.
Why Diwali Matters for the Stocks:
- Increased Consumer Spending: Diwali is associated with a lot of shopping, be it for gifts, home renovations, cars, or electronics, boosting demand for companies in retail, automobiles, and consumer goods.
- Auspicious Timing: Many people make large purchases or invest in gold, making jewelry and luxury goods companies prime beneficiaries.
- Economic Sentiment: The market often sees increased optimism around Diwali, as people tend to spend more, and businesses ramp up their marketing and sales efforts.
Here is the List of stocks to look out for
Last year, Diwali was in October, and the increased sales & profits during this period would be reflected in the December results. When it comes to stock returns during the festive season, the actual period spans from October to December. Let’s take a look at how the stocks have performed during these festive months.
Titan Company Ltd
Titan is a leading Indian brand known for its diverse portfolio, including watches, jewelry, eyewear, and fragrances. The company is a market leader in the organized watch and jewelry segments in India.
During Diwali, people tend to spend a lot on jewelry, as they believe it is an auspicious time for such purchases. At that time, the company’s revenue rose from Rs. 14,164 crore in December 2023 to Rs. 17,740 crore in December 2024. Meanwhile, the net profit declined a bit from Rs. 1,053 crore to Rs. 1,047 crore during the same period.
During the festive season, which spans from October to December, Titan Company’s stock has historically shown negative performance. Despite strong sales during this period, the stock has delivered a loss of nearly 15 percent.
TVS Motor Company Ltd
TVS Motor is one of India’s top motorcycle and scooter manufacturers, known for producing high-quality vehicles with a focus on innovation and fuel efficiency. The company offers a range of products across different segments, from entry-level bikes to premium motorcycles.
During Diwali, people tend to spend significantly on two-wheelers, as they believe the festive season is an auspicious time for making such purchases. At that time, the company’s revenue rose from Rs. 10,114 crore in December 2023 to Rs. 11,035 crore in December 2024. Meanwhile, the net profit rose from Rs. 510 crore to Rs. 609 crore during the same period.
During the festive season, which spans from October to December, TVS Motor’s stock has historically shown negative performance. Despite strong sales during this period, the stock has delivered a loss of nearly 17 percent.
Trent Limited
Trent Limited is a prominent retail company, part of the Tata Group, known for its flagship brand, Westside, and its investments in other retail ventures. The company has a strong presence in the fashion and lifestyle retail market in India.
During Diwali, people tend to spend significantly on apparel and lifestyle products, as they believe the festive season is a good time. At that time, the company’s revenue rose from Rs. 3,467 crore in December 2023 to Rs. 4,657 crore in December 2024. Meanwhile, the net profit rose from Rs. 371 crore to Rs. 497 crore during the same period.
During the festive season, which spans from October to December, Trent’s stock has historically shown negative performance. Despite strong sales during this period, the stock has delivered a loss of nearly 7 percent.
Varun Beverages Ltd
Varun Beverages is one of the largest franchise bottlers of PepsiCo products in India and several other countries. The company produces and distributes a wide range of soft drinks, juices, and snacks.
During Diwali, people tend to spend a lot on beverages as they celebrate and enjoy the festive vibe. At that time, the company’s revenue rose from Rs. 2,668 crore in December 2023 to Rs. 3,689 crore in December 2024. Meanwhile, the net profit rose from Rs. 144 crore to Rs. 196 crore during the same period.
During the festive season, which spans from October to December, Varun Beverages’ stock has historically shown strong performance. Over these festive months, the stock has delivered impressive returns, with gains of nearly 7 percent.
HDFC Bank Limited
HDFC Bank is one of India’s top private-sector banks, offering a broad range of financial products for retail and corporate customers. It is known for its strong focus on digital banking, enhancing customer experience.
During Diwali, people tend to make more purchases, leading to higher transactions and increased demand for loans, making it a prime time for banks. At that time, the company’s revenue rose from Rs. 78,008 crore in December 2023 to Rs. 85,040 crore in December 2024. Meanwhile, the net profit rose from Rs. 17,718 crore to Rs. 18,340 crore during the same period.
During the festive season, which spans from October to December, HDFC Bank stock has historically shown strong performance. Over these festive months, the stock has delivered impressive returns, with gains of nearly 5 percent.
Written By Sridhar J
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