Here’s a list of stocks that can benefit from the festive season
- Analysts say FMCG, auto makers and clothing company stocks are expected to witness strong demand.
- Raksha Bandhan, Ganesh Chaturthi, Navratri, Diwali, Dussehra are considered auspicious for purchases of valuable items like automobiles, apartments or even going on a shopping spree for clothing, watch,electronics etc.
- Besides, India’s consumption story is coming across to be strong even as Inflation may be hurting household budgets.
AdvertisementFestive season that starts from August and runs till December brings limelight on company stocks, whose products and services are in high demand during the period.
The festivals of Raksha Bandhan, Ganesh Chaturthi, Navratri, Diwali, Dussehra are considered auspicious for the purchase of valuable items like automobiles, apartments. Also, people tend to go on shopping sprees this season for clothing, watches, electronics etc.
Analysts say FMCG stocks are best performers during the season led by demand for sweets, chocolates and snacks.
“Festive season is around and some stocks in sectors like FMCG, auto, banking might see some good action due to increased demand during these times. Recently there has been a record growth in auto sales with long waiting times, in spite of the inflation concerns. Some stocks to look for could be Tata Motors, Mahindra and Mahindra,Titan and other banking stocks,” Manoj Dalmia, founder and director at Proficient Equities told Business Insider India.
|Festive stocks||% returns in last one year|
And, there are weddings too
Right along with the festival season comes the wedding season and that’ll spur the demand even further – making the season of shopping sprees last longer.
“FMCG stocks tend to do well during festive season with stocks like DMart, Shoppers Stop being in the limelight. Apart from the festive season, it’s also the marriage season so stocks like Manyavar, Raymond, these stocks would be back in focus because of the shopping spree,” Kranthi Bathini, director of equity strategy at WealthMills Securities told Business Insider India.
Moreover, India’s consumption story is coming across to be strong even as inflation may be hurting household budgets. Consumers, experts say, are not yet cutting back on discretionary items like skincare and cosmetics.
In a recent interview with Nykaa CEO Achint Nayar he said that consumers are not cutting back on small luxuries despite inflation. Especially in the premium category, there are fewer consumers who are unlike in the case of FMCGs in the last few months.
Morgan Stanley too backed the India consumption story and said in a recent report that it consumption will pick up in the coming quarters, as the economy is now fully reopened and supported by job creation and income growth.
It says that India’s household balance sheets are healthy and a conducive macro backdrop will keep consumer confidence high.
Advertisement“India’s consumption story is not a one day or one season story, it's going to be a much buoyant story in the coming days because the disposable income of people is going up. Besides, despite the increase in interest rates, real estate is picking up as people tend to book during the festive season,” added Bathini.
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