Diwali 2024 Stock Picks: JSW Energy to Federal Bank—FundsIndia Broking lists top 6 stocks to buy for Samvat 2081 | Stock Market News

Diwali 2024 Stock Picks: The Indian stock market is in a correction phase amid weak global cues. The domestic equity benchmarks Nifty 50 and Sensex logged their longest weekly losing run in 14 months, intensifying a broad-based selloff. Foreign investors continued to offload, and lacklustre corporate earnings further bogged down the sentiment, compelling indices to enter the bear market just a few days ahead of Diwali and the onset of Samvat 2081.

However, the market created history in Samvat 2080 by achieving several milestones in the last 12 months. The Nifty 50 surpassed the 26,250 mark, and the BSE Sensex surpassed 85,900 in September 2024, with both indexes gaining around 25 per cent during Samvat 2080 over resilient sentiments.

After a 19.8 per cent earnings growth in FY24, analysts expect the Nifty 50 index’s net profits to grow by 6.7 per cent in FY25 and 17.3 per cent in FY26. At 24,700 level, the Nifty 50 index trades at 23.7x FY25E and 20.2x FY26E. FY25 will likely witness more broad-based growth across sectors.

Nifty earnings growth will likely remain steady at ~a 12 per cent CAGR over FY24-26. For Samvat 2081, D-Street expects sectors linked to domestic structural and cyclical themes to do well. Analysts are positive for financials, consumption, industrials, technology, and healthcare sectors.

In the current market scenario, domestic brokerage firm FundsIndia Broking has released its top six Diwali 2024 stock picks for Samvat 2081. The brokerage has selected quality stocks based on technical and fundamental parameters that are expected to do well in the next 12 months.

Diwali 2024 Stock Picks by FundsIndia Broking

Let’s take a look at the top six technical and fundamental stocks for Diwali by brokerage FundsIndia Broking:

1.Kalyan Jewellers: Buy Price: ₹676; Target Price: ₹846; Potential Upside: 35 per cent

The company is targeting to open six jewellery showrooms in overseas markets and 130 outlets in India in FY25 (80 Kalyan and 50 Candere). According to the brokerage, it has given a capex guidance of ₹250 crore for FY25. 

With the scale-up of new franchise business, stable success in non-Southern business, store additions across diverse locations, new customer acquisition driven by improvement in studded jewellery share, and strong same-store sales growth (SSSG) compared to its peers, we expect the company to continue its industry-leading growth.

2.Central Depository Services Ltd. (CDSL): Buy Price: ₹1,461; Target Price: ₹1,845; Potential Upside: 26 per cent

CDSL invests in technology to improve its infrastructure, emphasizing hardware, application security, and top-tier technology platforms. The swift increase in demat accounts is anticipated to maintain this growth momentum. 

“The company holds a monopoly in its sector. Management is optimistic about the company’s growth path, fuelled by rising retail participation in capital markets and strategic technological investments. We believe CDSL is well-equipped to seize upcoming market opportunities,” said FundsIndia Broking.

3.JSW Energy: Buy Price: ₹670; Target Price: ₹825; Potential Upside: 23 per cent

The company aims to achieve generation capacity of 20 GW & energy storage of 40 GWh before 2030. Management is optimistic about the growth opportunities the evolving power sector landscape presents. The rising number of orders boosts confidence in the company’s ability to strengthen its market position and maintain its growth momentum. The brokerage anticipate the company will perform strongly in response to the increasing energy demand.