From SBI to LT Foods, here are our Muhurat Trading picks this Diwali 

The Indian stock market is poised for a significant turnaround in the Hindu New Year, Vikram Samvat 2082, following a relatively muted performance in Samvat 2081.  

The previous year saw the market grapple with persistent foreign institutional investor (FII) outflows, geopolitical crises, global trade headwinds, and subdued corporate earnings. However, the outlook for the new year is decidedly optimistic, underpinned by strong domestic policy actions and structural tailwinds. 

According to brokerage firm Motilal Oswal, Samvat 2082 is anticipated to begin on a positive note, supported by a favorable combination of fiscal and monetary tailwinds. The Reserve Bank of India’s (RBI) recent policy interventions, including a 100 basis points (bps) repo rate cut and a 150 bps cut in the Cash Reserve Ratio (CRR), have injected crucial liquidity into the system. This monetary easing, combined with a central government income tax relief package of ₹1 lakh crore, is expected to aid demand revival and boost potential for corporate earnings. Furthermore, the firm highlights that inflation remains comfortably low, and the implementation of GST 2.0 has simplified tax rates and revived consumer sentiment. 

Motilal Oswal believes these factors collectively signal the beginning of a turnaround in India’s domestic growth momentum, with a significant pick-up in consumption paving the way for a robust revival in the private capital expenditure (capex) cycle. The improved earnings trajectory resulting from these tailwinds is expected to lend substantial support to Indian equities. 

Earnings and Sectoral Outlook 

The firm perceives the second half of fiscal year 2026 (H2FY26) to mark the inflection point, where the market transitions from subdued low-single-digit earnings growth to a more sustainable double-digit growth trajectory. Nifty earnings growth is projected at a healthy 8% year-on-year (YoY) in FY26 and 16% YoY in FY27, a sharp acceleration from the modest 1% growth estimated for FY25. Additionally, Nifty valuations are viewed as reasonable, trading at about 20x FY26 earnings, close to long-term averages. 

For Samvat 2082, the firm expects domestic cyclicals and structural growth themes to perform well. It maintains a positive stance on sectors such as BFSI and Capital Markets, Consumption, Manufacturing (specifically Electronics Manufacturing Services, Defence, and Industrial), and Digital. 

Motilal Oswal’s Top Muhurat Picks 

Motilal Oswal has curated a high-conviction “Muhurat Basket” of stocks for the new Samvat, projecting an overall upside of 15-20% over a one-year duration.  

The top picks, each assigned a 20% weightage in the basket, are: 

• State Bank of India (SBI): SBI is positioned to benefit from structural tailwinds, including GST 2.0 and RBI’s liquidity infusion, which will drive robust credit growth in the BFSI sector. The bank’s diversified growth across retail, SME, and corporate segments is supported by a strong credit pipeline and ongoing digital transformation. 

• Bharat Electronics (BEL): The defense PSU is a key beneficiary of India’s defense modernization journey. The Indian Army’s ₹300 billion tender for the ‘Anant Shastra’ project, with BEL as the lead integrator, is set to boost its order book beyond ₹1 trillion. 

• Swiggy: The food delivery and quick commerce giant expects its Quick Commerce arm to achieve profitability sooner, aided by easing competition and lower acquisition costs. Its Food Delivery outlook has been strengthened, with growth estimates raised to approximately 23% for FY26–FY27. 

• Delhivery: With a market share exceeding 20% in express logistics, Delhivery is poised for sustained growth. The recent ₹14 billion Ecom Express acquisition is expected to enhance its rural coverage, strengthen network density, and drive significant cost synergies. 

• LT Foods: Leveraging strong brand equity with Daawat and Royal, LT Foods is well-positioned for long-term growth. The business is structurally export-led, commanding approximately a 30% share in the Indian and 50% share in the US Basmati market. The recent acquisition of Global Green Europe Kft. further aligns its strategy for growth in the packaged food and Ready-to-Heat (RTH)/Ready-to-Eat (RTE) segments. 

Motilal Oswal recommends a selective approach in stock picking, especially in the mid- and small-cap segments, as they trade at a slight premium to long-term averages. The strategy for Samvat 2082 remains focused on quality companies aligned with India’s domestic and structural growth narrative.