As the festive season is around the corner, it’s the right time to rebalance your portfolio, so it continues to earn good profit in the coming days. Festivals like Ganesh Chaturthi, Raksha Bandhan, Dussehra, Diwali, and Navratri are considered auspicious when most Indians make significant purchases like automobiles, real estate, gold and go on a shopping spree for clothes, electronics, jewellery, and more. So, if you are considering buying stocks, experts suggest these are the sectors one might think of.
Usually, the festive season in India starts in August and lasts till December. During these months, several sectors achieved higher growth prompted by robust demand. Sectors like FMCG enjoy a significant increase in demand due to a rise in consumption of chocolates, sweets, and snacks.
Here are our picks of the best stocks to buy in India during the festive season.
For obvious reasons, FMCG stocks are always one of the favourite stocks to purchase. Unlike other sectors, FMCG stocks are not cyclical. But as demand grows during the festive seasons, FMCG stocks are one of the best buys for the period. Investing in stocks like Hindustan Unilever, ITC is an perfect opportunity to gain some experience in the world of FMCG.
Retail brands see a rise in demand during the festive seasons. As a tradition, Indians buy new clothes during this period, boosting overall market demand. Targeting stocks from companies like Manyavar and Raymond is an excellent time to gain exposure to the cloth brands.
The festive and wedding seasons will focus on the jewellery brand. The jewellery sector is shining bright after the pandemic and the approach of the festive season. Brands like Tanishq and Kalyan Jewellers have reported better-than-estimated June quarter performance. Experts think the demand will rise as the gold price softens, boosting the stock price of jewellery brands.
The Indian automobile segment is reviving after the pandemic. Recently, the two-wheeler and four-wheeler segments in India have recorded considerable growth. The festive season is the time when many Indians make significant investments, like buying automobiles. Some stocks to look for during this period would be Tata Motors and Mahindra and Mahindra.
How to pick stocks for investing
Here are some tips to follow while selecting stocks for investment.
- Always select stocks based on your overall financial goals.
- Always choose fundamentally robust stocks when planning to invest in the long run.
- Don’t buy stocks based on tips and suggestions from friends, Facebook groups, etc. Always select stocks based on research.
- Focus on the future. Sometimes stocks go through momentary rise and fall in price. Investing requires settling on information that presently can’t seem to work.
- Don’t get lured by penny stocks. Penny stocks are always hazardous because they are volatile. If they lose their value, you might lose all your investment without chances of recovery.
- Pick a strategy and stick to it. Moving between different investing philosophies might not work and can be dangerous.
The best stocks to buy today in India should be based on your research. The Indian consumption force has remained strong despite the rise in inflation, indicating robust demand in different sectors. The festive season will see a significant boost in consumption. If you want to begin an investor’s journey in this festive season, open a free demat account with Angel One and invest in stocks, IPOs, commodities, currencies, and more.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.