How to play Indian markets ahead of Diwali Muhurat trading – check sectors that have historically done well

Sensex & Nifty investment cues ahead of Diwali: Traders aiming to profit from the stock market ahead of Diwali may want to consider investing in the Nifty and specific sectors such as auto and consumer discretionary. According to an ET report, a study conducted by Samco Securities reveals that the Nifty has shown positive gains on nine out of ten occasions during the period between Navaratri and Diwali’s Muhurat Trading Day over the past decade.
On average, the benchmark index has yielded a 2.1% return during this period, the study has revealed. Among sectors, the Nifty Auto index has consistently performed, recording gains in all ten years. The NSE’s Infrastructure index and BSE’s Consumer Discretionary index have also fared well during this time.
Samco Securities states that people tend to make purchases of new clothes, automobiles, jewelry, and consumer durables during this auspicious month-long period. This not only benefits shopkeepers but also presents a prosperous opportunity for investors. “This period is not only auspicious and profitable for the shopkeepers but also for the markets. It is one the most prosperous periods for investors,” Samco said.

However, this year the market has been relatively weak during this period. Since Navaratri began on October 15, the Nifty has experienced a 3.19% decline and the Sensex has fallen by 3.4%. Muhurat trading is scheduled for November 12 this year, during which exchanges will remain open for one hour in the evening.
Indian markets have witnessed a bloodbath with Sensex and Nifty recording the sixth straight day of losses today. According to an ET report, investors have lost Rs 9.8 lakh crore since October due to the indices tanking. The market carnage has largely been led by global cues with the ongoing Israel-Hamas war and rise in US treasury bond yields adding to uncertainties.