Muhurat trading is traditionally conducted on the evening of Diwali, marking a time for new beginnings and prosperity. Investors view this day as an opportunity to make new investments, with the belief that trades made during this auspicious hour will bring significant returns throughout the year. The atmosphere is filled with optimism as traders engage in purchasing stocks, often driven by sentiment rather than just financial analysis.
Over the past decade, the Sensex has ended positively on 8 out of 10 occasions on this day, which has enhanced its reputation for bringing good luck to investors. The Sensex has shown considerable growth over the last ten years, increasing from approximately 26,850 points in 2014 to an all-time high of around 85,978 points in September 2024. This remarkable growth reflects an average annual rate that continues to attract both domestic and foreign investors. The index’s performance is not merely indicative of market trends but also highlights India’s economic resilience and growth potential.
Bajaj Broking anticipates that the Nifty will target the 28,400 level by Diwali 2025. This target aligns with the rising trendline on the yearly chart that connects major highs since 2014 and the measurement implications of previous significant rallies. However, it is expected that the upward movement will involve some volatility rather than a smooth trajectory. A healthy correction is seen as beneficial for sustaining a long-term uptrend.
Corporate earnings, following four years of robust double-digit growth, are moderating due to pressures from commodities and diminishing benefits from improvements in BFSI asset quality. Nifty earnings growth is projected to remain steady at roughly 12% CAGR over FY24-26. Consequently, for Samvat 2081, returns from Nifty are expected to align with earnings growth as valuations stay close to long-term averages, according to Siddhartha Khemka from Motilal Oswal.
