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 ten top stocks boast strong fundamentals but also exhibit the potential for attractive returns as we move into the new year.
Check them out!
Top 10 Stocks for Muhurat Trading 2024
Here are the best stocks that you can buy this Diwali during the auspicious Muhurat Trading in 2024.
1. Bajaj Auto
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.
2. Reliance Industries
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.
3. Zomato
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.
4. Bajaj Finance
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.
5. ICICI Lombard General Insurance
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.
6. State Bank of India
India’s largest public sector bank, SBI, has a significant market share and a diverse product portfolio. With strong quarterly earnings and steady credit growth, SBI has maintained a solid presence in the banking sector.
It continues to attract investors due to its robust asset quality and extensive branch network, providing stability amidst market fluctuations.
Details:
- Market Cap: ₹7,09,240 Cr
- PE Ratio: 10.00
- PB Ratio: 1.72
SBI’s Historical Performance:
See the stock’s current performance here.
7. Bharat Dynamics
Bharat Dynamics, a key player in India’s defense manufacturing sector, has seen consistent growth, backed by government contracts and an increasing focus on indigenization.
The company’s stock performance reflects positive investor sentiment towards India’s defense modernization initiatives. Its steady order book and strong fundamentals have made it a promising investment in the defense sector.
Details:
- Market Cap: ₹38,509 Cr
- PE Ratio: 67.00
- PB Ratio: 10.59
Bharat Dynamic’s Historical Performance:
See the stock’s current performance here.
8. Axis Bank
Axis Bank, one of India’s leading private sector banks, has shown resilience and growth in the competitive banking space.
With improved asset quality, stable loan growth, and consistent profitability, the stock has attracted both retail and institutional investors. Its focus on digital banking and customer-centric strategies further strengthens its position in the market, making it a preferred choice among private banks.
Details:
- Market Cap: ₹1,00,193 Cr
- PE Ratio: 45.00
- PB Ratio: 7.36
Axis Bank’s Historical Performance:
See the stock’s current performance here.
9. Trent
Trent Ltd., part of the Tata Group, is well-known for its retail brands like Westside and Zudio. The company has shown robust growth in the organized retail sector, with a strategic focus on expanding its footprint across India.
Trent’s stock has performed well, driven by steady store expansions and rising demand in India’s retail market, making it a popular choice among retail-focused investors.
Details:
Market Cap: ₹2,66,466 Cr
PE Ratio: 212.00
PB Ratio: 65.51
Trent’s Historical Performance:
See the stock’s current performance here.
10. Ador Welding
Ador Welding Ltd. is a leading player in India’s welding industry, offering a range of consumables, equipment, and automation solutions. With a strong presence in sectors like manufacturing, oil and gas, and construction, it’s a long-term stock pick for exposure to industrial growth.
The company focuses on innovation and expanding its product line, including advanced automation systems. Investors should watch its revenue growth, profitability, and adaptation to market trends for potential investment opportunities.
Details:
Market Cap: ₹1,725 Cr
PE Ratio: 35.00
PB Ratio: 6.05
Ador Welding’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!
