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Top stocks for Diwali 2020

Which stocks should you keep an eye on this Diwali?

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Diwali is all about celebration, so let’s bring joy to your portfolio with some new stocks.

With the BSE Sensex making a steady recovery, analysts are positive about equity performance in the Indian markets over the next few weeks. Here are some top stock picks for you to consider this Diwali season.

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Top stocks for Diwali 2020

Bharti Airtel

Praised by Motilal Oswal for its excellent execution in its recent few quarters, Bharti Airtel has demonstrated impressive EBITDA growth, driven by strong subscriber numbers. It currently holds a price target of Rs 709, representing a more than 50% upside.

Indian Tobacco Company

The Indian Tobacco Company is said to offer attractive valuations for its price. With its price target of Rs 228, this stock and its minimum 30% upside is worth watching.

State Bank of India

According to Motilal Oswal, this stock offers a great play on the recovery of Indian bank stocks. With its strong capitalisation and strengthened operations, State Bank of India is considered one of the best choices amongst the PSU banks.

Larson & Toubro

L&T is believed to have some big-ticket projects in its backlog. According to Reliance Security, it furthers offers a competitive amount of liquidity with a strong track record of performance. That accounts for its price target of Rs 1,280.

Redington India

Redington India has touted its efficient order management systems and improve supplier credit. It is also net cash positive and expects an ROE of minimum 20% moving ahead. As such, its current price target stands at Rs182.

KPR Mill

Holding a price target of Rs 1,105, KPR Mills stands out with its efficient operational capabilities and strong business ethics.

Manappuram Finance

While its latest price correction sparked some disdain amongst investors, YES Securities belives that Manappuram’s rise in customer acquisition is a good indicator of future growth. This. alongside its robust liquidity, makes it a worthy contender for your portfolio.

Kansai Nerolac Paints

Higher growth margins and a growing ROE prompts YES Securities to be bullish on Kansai Nerolac Paints. The stock currently holds a price target of Rs 700.

Ashok Leyland

Holding a price target of 105, an over 20% upside, Ashok Leyland has caught the eye of Reliance Securities. Ashok Leyland has held a steady market share in the medium and heavy commercial vehicles industry, and poses a lower risk than passenger vehicle stocks. In recent years, it has expanded into the light commercial vehicles market to improve its operational scope.

ICICI Bank

With its strong position to expand into loans, deposits and revenues, ICICI is considered a good pick by IIFL Securities. ICICI Bank currently holds a target price of Rs 530.

HCL Technologies

Considering its low allocation to high-risk industries like travel, energy and hospitality, HCL’s portfolio is decently hedged against risk. It also holds a strong exposure to IMS, allowing it to easily expand into cloud and cyber industries. HCL Technologies holds a price target of Rs 1,000.

HDFC

According to YES Securities, HDFC is an attractive buy with a solid balance sheet. It anticipates an uptick in its margins, especially arising from foreseeable growth in its banking. insurance and asset management associates.

Infosys

With its projected upside of over 20%, Infosys is not a stock to overlook. It is widely expected by analysts to recover from a rise in IT spending. Considering its strong potential for future margin growth, Infosys has a promising outlook. Its current price target stands at Rs 1,355.

Tips for investing in stocks this Diwali

If any of these stocks have caught your eye, keep these factors in mind before choosing an investment.

  • Do your research. While most of these stocks are blue-chip and therefore considered typically safe, do your research to anticipate any potential volatility or losses.
  • Pick a strategy. While it may be tempting to get into value stocks, you can’t buy every dip. Consider if the investment fits your overall strategy as well as long-term goals.
  • Never make an emotional decision. Always stick to the facts and take a step back to think before acting.
  • Watch out for falling knives. Considering the pandemic and the uncertain economic environment its created, it’s common to witness stocks drop up 10% or more in a day. While it might be tempting to get in during such situations, always be wary about “catching a falling knife.”

Compare online brokers to trade stocks this Diwali

Data indicated here is updated regularly
Name Product Number of stocks CFDs Shares Available Markets Link
Tradesmart
All NSE/BSE listed stocks
No
Yes
IN
Go to site
More info
Sharekhan
All NSE/BSE listed stocks
No
Yes
Available in 72 countries
Go to site
More info
5paisa
All NSE/BSE listed stocks
No
Yes
IN
Go to site
More info
Saxo Markets
19,000+
Yes
Yes
AU, CN,CZ, DK, ES, FR, TW, HK, IT, HU, SA, NE, NO, PL, RU, SG, CH, UK, JP
Go to site
CFD service. Your capital is at risk.
More info
CFD Service. Your capital is at risk.
Upstox
All NSE/BSE listed stocks
No
Yes
IN
More info
Motilal Oswal
100+
No
Yes
IN, US
More info
Religare
All NSE/BSE listed stocks
No
Yes
IN
More info
ICICI Direct
All NSE/BSE listed stocks
No
Yes
India and rest of the world.
More info
Bajaj Finserv Securities
All NSE/BSE listed stocks
No
Yes
IN
More info
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Bottom Line

Use this Diwali to drive your portfolio returns. From reliable blue-chip buys to more thrilling value plays, there are plenty of stocks on the Indian markets to give you solid returns. However, always do your due diligence beforehand in order to make responsible investment decisions.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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