Muhurat Trading From 2022 To 2023: Sensex, Nifty Gains By 9-10%; Investors Wealth Rises By Rs 45.87 Lakh Crore

The one-hour auspicious occasion of Muhurat trading in 2023 is going to be held on November 12, where investors will be looking to grab opportunities in value stocks for building a wealth-creating portfolio. A large number of traders and stock brokers invest in equity shares during Diwali as the festival is seen as propitious for fortune. Investments are high during these 5-day celebrations in India. From last year to current Muhurat trading, Sensex and Nifty 50 have gained significantly and investors' wealth has witnessed an exponential rise.

Both BSE and NSE will allow trading in the equities market on November 12 for one hour starting from 6:00 p.m. to 7:15 p.m. Muhurat trading takes place irrespective of the day when the celebration of Laxmi Pujan occurs either the weekend or weekdays. This year, the auspicious trading hour will take place on Sunday.

Let's have a look at how markets have performed since last year's muhurat trading leading up to the current one.

Last year, Muhurat trading took place on October 24, 2022, which was Monday. But since October 21, 2022, Sensex has gained by 5,597.53 points or 9.43%, while Nifty 50 has rallied by 1,849.05 points or 10.52% to date. From last year's muhurat trading, Nifty has outperformed its counterpart Sensex.

Also, investors' wealth has risen impressively with the upsurge in Sensex and Nifty 50. For instance, the BSE-listed companies' market cap stood at Rs 2,74,41,800.53 crore as of October 21, 2022, which has skyrocketed to Rs 3,20,29,232.24 crore as of November 10, 2023. This would be a rise of Rs 45,87,431.71 crore in investors' wealth.

On the muhurat trading of 2022, itself, Sensex and Nifty 50 advanced by nearly 1% in that one-hour trade.

On October 24, 2022, Sensex ended at 59,831.66 up by 0.88%, while Nifty 50 closed at 17,730.75 up by 0.88% compared to its previous day's print (October 21, 2022) where the 30-scrip and 50-scrip benchmark stood at 59,307.15 and 17,576.30 respectively.

Meanwhile, during that one-hour muhurat trade of 2022, investors' wealth climbed by Rs 2,05,507.53 crore compared to the previous session (October 21, 2022), as per data available on BSE.

Talking about the market performance in the last year, Manish Chowdhury, Head of Research, StoxBox said, "Till date, the Nifty 50 index has gained close to 10% since the last Diwali in October 2022. Against the backdrop of high inflation environment, rising interest rate scenario and geo-political tensions, the gains are definitely decent."

He added, " The upside since Samvat 2079 can be attributed to strong domestic inflows, intact structural story of India, improving corporate earnings and favorable government policy making."

Looking ahead, he said, "We expect markets to perform better in Samvat 2080 as interest rate cycle around the globe look close to the peak, better positioning of India vis-à-vis other emerging markets and valuation comfort in large-cap stocks at current levels."

It needs to be noted that Sensex and Nifty 50 both touched a lifetime high of 67927.23 and 20,222.45 in September 2023. Indian markets have fared well in challenging global conditions.

SAMVAT 2080:

Further, Motilal Oswal Financial Services on Samvat 2080 recommends focussing on themes like financials, consumption, discretionary spending, Construction & Real Estate, and High Growth Niche Sectors like MFIs, Electronic Manufacturing, New Age FinTech stocks.

In the report, MOFSL expect financials especially PSU Banks and NBFCs to continue witnessing robust loan growth while expecting their asset quality remains healthy. Also valuations are reasonable especially after their recent underperformance.

Samvat 2080 is set to start with Multiple states going into election in November-December'2023, which would set the stage for General Election in May 2024. Historically, such scenario has resulted in a pre-election rally. In the last five consecutive Lok Sabha elections (i.e. from 1999 to 2019), Nifty has rallied 10-35% for the six months run-up until the announcement of election results (Nov-May period), it said.

Motilal notes that various sectors in consumer discretionary - Auto, Hotels, Jewellery, real estate, Building Materials, etc. are seeing good demand which is likely to continue given India's Strong economy and strong demographics. It believes, Indian corporate sector is well positioned to benefit from capex push, focus on indigenization, PLI schemes to strengthen the manufacturing base, strategic global technology tie ups, and focus on increasing exports.

MOFSL believes overall trend should remain positive in Samvat 2080 and is positive on Indian equities from mid to long term perspective, given the favorable domestic environment.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.