Angel One Shagun Ke Shares 2026 Report: 8 Fundamental Stock Picks for Diwali

Written by: Vaqarjaved Khan, CFAUpdated on: 31 Oct 2026, 1:57 am IST

According to Angel One Shagun Ke Shares Diwali Picks Report 2026, India continues to grow faster than any other major economy despite a challenging year. However, this time the growth is coming with a higher cost of living.

Angel One Shagun Ke Shares 2026 Report: 8 Fundamental Stock Picks for Diwali

India's economic growth, domestic consumption and investment activity continue to support its equity market. However, elevated crude oil prices, foreign investor outflows, and inflation remain key factors influencing market performance.

On the auspicious occasion of Diwali, a festival associated with prosperity and wealth, Angel One presents its Shagun ke Shares Diwali Picks Report 2026. The report examines the key trends shaping the Indian market and features eight fundamentally selected stocks across different sectors.

Angel One's 8 Fundamental Stock Picks for Diwali 2026

Company Name	Sector	CMP (₹)	Market Cap (₹ Cr)
ICICI Bank	Financial Services	1,398	10,03,900.91
Northern Arc Capital	Financial Services	251.80	4,090.58
Aarti Pharmalabs	Healthcare	873	7,913.63
Shanti Gold	Consumer Discretionary	292.90	2,266.12
Ratnaveer Precision	Industrials	359	3,023.45
Engineers India	Industrials	251.80	14,155.04
AGI Infra	Real Estate	238.70	2,998.69
Apollo Micro Systems	Defence	397.15	14,817.53

Note: CMP and market capitalisation as of September 30, 2026.

India’s Growth Story Holds Firm, But the Easy Money Phase is Over

India is still growing faster than any other large economy, and that hasn’t changed despite a difficult year.

The RBI raised its FY2026-27 GDP growth forecast to 7.1% at its October policy meeting, and the OECD made the same 7.1% call in its September interim outlook, up from 6.3% earlier, pointing to strong domestic demand and government steps that shielded households and businesses from higher energy costs.

Households are still spending; the festive season is underway, and public spending on infrastructure continues to support investment. Private consumption remains the backbone of growth.

The difference this year is that growth is coming with a higher cost of living.

Foreign Money Exits, Domestic Savers Hold the Line

FPIs have pulled ₹3.04 lakh crore out of Indian equities this year, compared with ₹1.66 lakh crore in all of 2025. They are being driven away by rising crude, a stronger dollar and high US bond yields, and some of that money is moving to North Asian markets riding the AI rally.

DIIs have invested ₹6.21 lakh crore in domestic stocks so far in 2026, and September was their 38th straight month of net buying. March, when panic selling was at its worst, saw a record ₹1.36 lakh crore of DII inflows.

The money behind this is steady and spread across millions of households: SIP inflows hit a new high of ₹32,490 crore in September. As a result, ownership of Indian companies is shifting to domestic hands.

DIIs owned 21% of Nifty 500 companies at the end of the June quarter.

GST and Consumption: The Indian Shopper is Still Spending

War in West Asia, costlier fuel and a weaker rupee might have been expected to make Indian households cautious. So far, the spending data doesn’t show it.

Tax collections tell the first story. GST collections for April–September 2026 rose 11.6% to ₹12.46 lakh crore, from ₹11.17 lakh crore in the same period last year. That works out to roughly ₹2.08 lakh crore a month, against about ₹1.86 lakh crore a year ago. September brought in ₹2.04 lakh crore, the third straight month above ₹2 lakh crore. Part of the rise comes from costlier imports: domestic GST grew 10.1% while import GST jumped 25.9%. Even after allowing for that, the domestic number shows a healthy level of economic activity. It also gives the government the room it needs to keep funding capital expenditure.

People are buying cars again, in record numbers. India’s passenger vehicle industry registered a 7.9% YoY increase in FY26 sales, reaching an all-time high of 46.43 lakh units, reflecting resilient domestic demand. The momentum has carried into FY27, with first-half sales climbing 28.3% to 26.37 lakh units. GST-led price relief, more affordable financing and growing preference for SUVs and EVs are making vehicle ownership more attractive, providing a boost to India’s auto industry.

Digital payments keep setting new records. UPI processed more than 24,162 crore transactions worth about ₹314 lakh crore in FY26. It reached a new monthly high in August, with 24.51 billion transactions worth ₹29.82 lakh crore, 20% more than a year earlier. Credit card spending has also stayed strong, at ₹2.08 lakh crore in July, up 7.4% year-on-year and above ₹2 lakh crore for the third month in a row.

Air travel is a weak spot. Domestic air traffic grew just 1.4% to 1,677.4 lakh passengers in FY26. Airspace closures and fuel surcharges are now adding to the pressure on travel demand.

The bigger picture. Busier showrooms, steady GST collections and a growing number of digital payments all point the same way. Indian consumers are still spending, and they are increasingly doing it digitally. The test over the coming months is whether rising prices begin to weigh on that confidence.

India’s Capex Cycle: Steady Through the Storm

India’s investment cycle is entering FY27 in better shape than most people expected. The government is still spending heavily on infrastructure, and private companies are starting to share the load.

Government Capex: still the anchor. The Union Budget 2026–27 set capital expenditure at a record ₹12.2 lakh crore, up from the FY26 revised estimate of ₹10.9 lakh crore. Including grants to states for building capital assets, effective capex is projected at ₹17.14 lakh crore, about 4.4% of GDP and the highest share in a decade. Spending is running ahead of plan: central capex rose 18% in April–August against a full-year budget target of 14%. Defence is the standout, up 38% so far this year.

Private Capex: strong intentions, slower follow-through. Private investment announcements rose to ₹56 lakh crore in FY26 from ₹37 lakh crore the year before, led by manufacturing, power and building infrastructure. Actual spending is also picking up: gross fixed capital formation grew 11.9% in Q1 FY27, against 5.8% a year earlier.

Banking: Lending Picks Up, Balance Sheets Stay Clean

Indian banks are lending more than at any point in recent years, and their books are in their best shape in decades.

Credit at scheduled commercial banks grew 14.5% in FY26, and the pace has picked up since. Bank lending is gaining real momentum. Non-food credit grew 18.8% year-on-year in August 2026, almost twice the 10.2% pace of a year earlier. Industry, long a laggard, is driving much of the revival, with credit to the sector up 18.2% against just 7% last year. Growth is broad-based too: services credit rose 24.3%, agriculture 17.2% and personal loans 16.9%. From factories adding capacity to farmers funding the season and households stepping up spending, demand for credit is coming from every part of the economy.

What makes this lending boom reassuring is how clean the balance sheets are. Gross NPAs fell to a multi-decadal low of 1.8% in March 2026, and new bad loans are slowing. The slippage ratio eased to 1.2% in FY26, its fourth straight year of decline. Capital buffers are also comfortable: aggregate CRAR for 46 major banks was 17.1% in September 2025, well above the regulatory minimum.

The October rate hike and rising inflation will test borrowers in the months ahead. Even so, Indian banks start this cycle well capitalised, with low bad loans and plenty of room to fund the economy’s next phase.

Domestic Flows Anchor the Market

Over the past few years, Indian equity markets have gone through a structural shift, with domestic institutional investors (DIIs) and retail investors becoming the main stabilisers. This was clearest in FY26.

Foreign investors pulled out a record ₹1.8 lakh crore, but DIIs more than made up for it with record inflows of ₹8.5 lakh crore, about ₹6.4 lakh crore of which came through mutual funds. Retail SIP contributions kept climbing and hit an all-time high of ₹32,490 crore in September 2026.

In earlier cycles, heavy foreign selling usually led to sharp market falls. That is no longer the case. A growing base of retail investors, together with steady buying by mutual funds and other DIIs, now acts as a strong cushion against foreign outflows.

The shift shows up in ownership too: DIIs now hold a record 17% of NSE-listed companies, while foreign ownership has dropped to a 15-year low of 15.8%.

This marks a clear break from the past. Indian markets are no longer driven mainly by foreign money but are increasingly anchored by domestic savings.

Rising household investment in financial assets and direct equity participation are now powering both the primary and secondary markets: companies raised a record ₹2.35 lakh crore through public equity offerings in FY26. As a result, the market is far less vulnerable than it once was.

Wrapping Up

India's growth momentum, domestic investor participation and investment activity remain important factors shaping the market outlook. However, global uncertainties and inflation continue to influence market conditions.

Stay tuned as we cover the remaining seven stocks in Angel One’s Shagun Ke Shares Diwali Picks Report 2026 series, with one stock and its investment rationale featured every day until November 7, 2026.

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Published on: Oct 30, 2026, 5:21 PM IST

Vaqarjaved Khan, CFA

Vaqarjaved Khan is a Senior Analyst at Angel One with nearly 10 years of experience in Indian equity markets. At Angel One he covers company and industry research, portfolio management, macro analysis and valuations. His work supports client-facing research and advisory across large, mid and small-cap names. He holds an MBA in Finance, the CFA charter (US), FMVA, and NISM Research Analyst certification.

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