As the festival of Diwali approaches, many investors in India prepare for the auspicious occasion of Muhurat Trading—a time-honored tradition where traders buy stocks to usher in prosperity for the coming year.
Muhurat Trading, usually lasting for just one hour, is seen as an opportune moment to invest in stocks that show potential for growth and stability.
In 2024, several stocks stand out as particularly promising candidates for this special trading session. This blog will delve into five top stocks boast strong fundamentals but also exhibit the potential for attractive returns as we move into the new year.
Check them out!
Top 5 Stocks for Muhurat Trading 2024
Bajaj Auto is one of India’s leading two-wheeler and three-wheeler manufacturing companies, known for brands like Pulsar, Dominar, and the popular Chetak electric scooters. The stock has demonstrated steady growth over the years, underpinned by its strong market share in the motorcycle segment and successful export strategies.
While the company has faced challenges like rising input costs and competitive pressures, its focus on premium motorcycle offerings and electric vehicle transitions has helped it maintain a solid market presence.
Bajaj Auto’s stock has generally delivered stable returns with occasional volatility, reflecting the cyclical nature of the auto sector.
Details:
- Market Cap: ₹2,93,236 Cr
- PE Ratio: 40.00
- PB Ratio: 9.47
Bajaj Auto’s Historical Performance:
See the stock’s current performance here.
Reliance Industries Limited (RIL) is a diversified conglomerate with interests spanning across petrochemicals, refining, telecom, retail, and digital services. It is one of the largest companies in India by market capitalization.
Over the years, Reliance has transformed from a traditional energy-focused company to a digital and consumer-centric giant, driven by the success of its telecom arm, Jio, and retail ventures.
The stock has shown impressive long-term growth, buoyed by strong earnings and strategic investments in future technologies like renewable energy. Despite occasional fluctuations due to macroeconomic factors, it has remained a favorite among long-term investors for its growth potential.
Details:
- Market Cap: ₹18,52,730 Cr
- PE Ratio: 27.00
- PB Ratio: 2.26
Reliance Industries’ Historical Performance:
See the stock’s current performance here.
Zomato is a leading online food delivery and restaurant discovery platform in India. Since its listing in 2021, Zomato’s stock has been volatile, influenced by changing market dynamics, competitive pressures, and evolving customer behavior in the online food delivery space.
Zomato’s stock debuted on the Indian bourses on July 23, 2021, with an issue price of ₹76.
The stock initially saw strong investor interest, driven by optimism around the rapid growth of digital consumption in India. However, due to market volatility, Zomato’s stock hit its 52-week low of ₹97.07 on September 13, 2023.
Despite this, Zomato’s focus on expanding its customer base and increasing operational efficiencies continues to make it a closely watched stock in the tech-enabled consumer sector.
Zomato’s stock hit an all-time high of ₹285.95 on September 12, 2024. And with many notable strategic changes/additions, positive sentiment and e-commerce growth have favoured the Zomato stocks immensely as it has increased by 369% over the last two years.
Details:
- Market Cap: ₹2,34,729 Cr
- PE Ratio: 391.00
- PB Ratio: 11.50
Zomato’s Historical Performance:
See the stock’s current performance here.
Bajaj Finance is one of India’s leading non-banking financial companies (NBFCs), offering a range of lending products including consumer loans, personal loans, and mortgages. Known for its strong management and robust risk assessment capabilities, Bajaj Finance has delivered exceptional growth over the past decade.
The stock has been a consistent performer, with a track record of high returns, reflecting its ability to maintain strong loan book growth while managing asset quality.
Despite facing pressures during economic downturns, the company has demonstrated resilience, making it a preferred choice for investors looking for exposure in the financial services sector.
Details:
- Market Cap: ₹4,19,958 Cr
- PE Ratio: 28.00
- PB Ratio: 5.50
Bajaj Finance’s Historical Performance:
See the stock’s current performance here.
ICICI Lombard is one of India’s leading private general insurance companies, offering a wide range of insurance products including motor, health, and property insurance. The company has a solid market presence and is known for its innovative digital solutions in the insurance space.
ICICI Lombard’s stock has shown steady growth, backed by consistent premium growth, strong underwriting practices, and a well-diversified product portfolio.
While the insurance sector faces cyclical risks and regulatory challenges, ICICI Lombard has managed to maintain profitability and a strong balance sheet, making it an attractive long-term investment in the insurance industry.
Details:
- Market Cap: ₹1,00,193 Cr
- PE Ratio: 45.00
- PB Ratio: 7.36
ICICI Lombard General Insurance’s Historical Performance:
See the stock’s current performance here.
Conclusion
As you prepare for Muhurat Trading in 2024, the stocks highlighted in this blog offer a blend of growth potential, stability, and market resilience.
Make the most of this unique opportunity in the realm of Indian financial market with ₹0 Brokerage on Dhan.
Open your free Demat Account today, be ready to invest in the Muhurat!
