Top 10 picks for Muhurat Trading
Introduction
Muhurat trading is a one-hour special trading session conducted on the day of Diwali by the exchanges. It is considered auspicious to trade during this time, and many traders and investors believe that it can bring good luck and prosperity in the coming year.
It has been a tradition on the Indian stock market for centuries. It is believed that the goddess Lakshmi, the Hindu goddess of wealth and prosperity, blesses those who trade during this time.
It is also a time for traders and investors to reflect on their past performance and to set new goals for the coming year. It is a time to start fresh and to look forward to a prosperous future.
What is Muhurat Trading?
Muhurat trading, also known as “Mahurat trading,” is a significant and auspicious event in the Indian stock market that occurs on the occasion of Diwali. This tradition has been followed for decades, symbolizing the beginning of the Hindu New Year and bringing prosperity to the financial markets. Many traders and investors believe that it can bring good luck and prosperity in the coming year.
What is Muhurat Trading?
The history of Muhurat trading dates back to the early days of the Indian stock market. In the late 19th and early 20th centuries, stockbrokers would gather at the Bombay Stock Exchange on Diwali to trade for a short period of time. This tradition was seen as a way to start the new year off on a positive note and to seek the blessings of Goddess Lakshmi, the Hindu goddess of wealth and prosperity.
Over time, It has become more formalized. Today, the Bombay Stock Exchange and the National Stock Exchange both hold special one-hour trading sessions on Diwali. These trading sessions are typically held in the evening, after the regular trading hours have ended.
The exact origins of Muhurat trading are unknown. However, it is likely that the tradition is rooted in Hindu beliefs about the auspiciousness of certain times and dates. Diwali is one of the most important Hindu festivals, and it is believed to be a good time to start something new.
It is also likely to have been influenced by the practice of astrological forecasting. Astrologers would advise stockbrokers on the most auspicious times to trade during the year. Diwali would have been seen as a particularly auspicious time to trade, as it is a time when the planets are aligned in a favorable way.
Whatever be the reason or origin of this tradition, Muhurat trading has become an integral part of the Indian stock market tradition. It is a time for traders and investors to come together to celebrate the new year and to seek the blessings.
When is Muhurat trading in 2023?
Muhurat trading in 2023 will be held on Sunday, November 12, from 6:15 PM to 7:15 PM. The pre-opening session begins at 6:00 PM and is 15 minutes long.
During Muhurat trading, all segments of the stock market are open, including equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB). However, liquidity is typically lower than during regular trading hours.
Muhurat trading timings For Various Segments
Currency Derivatives Segment
Past Performance of NIFTY and SENSEX on Muhurat Trading day
Our top 10 stock picks Muhurat Trading
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BSE Ltd.
Analysts are particularly optimistic about BSE Ltd.’s growth prospects in the derivatives segment. The company is expected to gain market share in this segment as it rolls out new products and services.
Analysts are also positive on BSE Ltd.’s plans to monetize its Star MF platform. The company is considering selling a stake in the platform to a strategic investor, which could generate significant cash flow.
Here are some of the risks that analysts have identified:
- Increased competition in the equity market: The Indian equity market is becoming increasingly competitive, with new exchanges and trading platforms entering the market. This could put pressure on BSE Ltd.’s margins.
- Regulatory changes: The Indian government has a history of regulating the equity market. Any changes to the regulatory environment could negatively impact BSE Ltd.
Overall, analysts believe that the risks are outweighed by the potential rewards. BSE Ltd. is a well-positioned company with a strong track record of growth. The company is expected to benefit from a number of tailwinds in the years to come.
Ashoka Buildcon Ltd.
HDFC Securities has a BUY rating on ASHOKA with a target price of ₹202. The brokerage firm believes that the company’s strong order book, improving execution, and expanding margins will drive its growth in the coming years. HDFC Securities is also positive on the company’s potential to benefit from the government’s infrastructure push.
Emkay Global Financial Services has a BUY rating on ASHOKA with a target price of ₹150. The brokerage firm believes that the company is well-positioned to benefit from the infrastructure growth in India. Emkay Global is also positive on the company’s strong balance sheet and its focus on execution.
Overall, analysts are generally positive on ASHOKA Buildcon Ltd. They believe that the company has strong growth prospects and is well-positioned to benefit from the infrastructure growth in India. However, some analysts are concerned about the company’s moderation in margins and its bagging of projects at lower margins.
State Bank of India
State Bank of India (SBI) is a large-cap public sector bank in India with a strong presence in the retail and corporate banking segments. The bank has a wide network of branches and ATMs across the country, making it a popular choice for both individuals and businesses.
Overall, the consensus rating for SBI is “Buy.” The average target price for the stock is ₹741.08, which implies an upside of 27.88% from the current price of ₹579.50.
Here are some of the key reasons why analysts are bullish on SBI:
- Strong financial performance: SBI has a long track record of profitability and has consistently delivered strong earnings growth. The bank’s asset quality is also improving, with gross non-performing assets (NPAs) declining to 4.2% as of September 30, 2023.
- Healthy loan growth: SBI’s loan book is growing at a healthy pace, driven by strong demand from retail and corporate borrowers. The bank is also expanding its presence in new businesses, such as digital banking and wealth management.
- Strong capital position: SBI has a strong capital position, with a capital adequacy ratio (CAR) of 14.4% as of September 30, 2023. This gives the bank the flexibility to grow its loan book and weather any economic downturns.
However, there are also some risks to consider:
- Rising interest rates: Interest rates are expected to continue to rise in the near term, which could put pressure on SBI’s margins.
- Increased competition: SBI faces increased competition from private sector banks, which are gaining market share in the retail banking segment.
Overall, the analysts believe that the benefits of investing in SBI outweigh the risks. The bank is well-positioned to benefit from the Indian economy’s long-term growth prospects.
Here are some specific analyst recommendations for SBI:
- ICICI Securities: Buy with a target price of ₹790.0
- HDFC Securities: Buy with a target price of ₹790.0
- Motilal Oswal: Buy with a target price of ₹725.0
- Credit Suisse: Buy with a target price of ₹700.0
- Jefferies: Buy with a target price of ₹675.0
Sobha Ltd.
Analysts are positive on Sobha Ltd.’s long-term prospects. The company has a strong track record of execution, a healthy balance sheet, and a strong brand name. However, analysts are cautious in the near term due to the slowdown in the real estate sector.
Here are some specific analyst views:
ICICI Securities has a “Buy” rating on Sobha Ltd. with a target price of ₹891. The brokerage is bullish on the company’s strong growth prospects and its focus on cash generation.
HDFC Securities has a “Buy” rating on Sobha Ltd. with a target price of ₹1024. The brokerage believes that the company’s recent investments in its project pipeline will drive growth in the coming years.
Motilal Oswal has a “Buy” rating on Sobha Ltd. with a target price of ₹960. The brokerage believes that the company’s strong balance sheet and its focus on affordable housing will help it to weather the current slowdown in the real estate sector.
Overall, analysts are expecting Sobha Ltd. to report revenue growth of 15-20% in FY24. However, EBITDA margins are expected to remain under pressure due to rising input costs.
Here are some of the key risks to Sobha Ltd.:
The slowdown in the real estate sector could impact sales growth.
Rising input costs could put pressure on margins.
Increased competition from other developers could erode market share.
Despite these risks, analysts believe that Sobha Ltd. is well-positioned for long-term growth. The company’s strong track record, healthy balance sheet, and strong brand name should help it to weather the current slowdown and emerge stronger.
Neogen Chemicals Ltd.
Analysts are bullish on Neogen Chemicals Ltd. and have a “BUY” rating on the stock. They believe that the company is well-positioned for long-term growth due to its strong track record of growth, its expanding product portfolio, and its favorable industry outlook.
Here are some specific highlights from recent analyst reports:
ICICIdirect has a revised target price of ₹1870 per share for NCL, which is based on a P/E multiple of 50x FY24E EPS. The brokerage firm believes that NCL’s growth momentum will remain intact due to the ramp-up in its recently commissioned capacity and its upcoming capacity expansion plans.
HDFC Securities has a target price of ₹2099 per share for NCL and maintains a “BUY” rating on the stock. The brokerage firm is impressed with NCL’s strong financial performance in Q1FY23 and believes that the company is well-positioned to benefit from the growth in the specialty chemicals industry.
Trendlyne has a consensus target price of ₹1755 per share for NCL, which represents an upside of 13.68% from the current price. The consensus rating for NCL is “BUY” and there are no “SELL” ratings.
Overall, analysts are optimistic about NCL’s future prospects. They believe that the company is well-positioned to benefit from the growing demand for specialty chemicals in India and other emerging markets.
Hindware Home Innovation Ltd.
Edelweiss has a BUY rating on Hindware Home Innovation Ltd., with a target price of ₹637. The brokerage firm believes that the company’s order books looks good and demonstrated a positive growth outlook.
HG Infra Engineering Ltd.
Analysts have a positive outlook on HG Infra Engineering Ltd. The company is expected to benefit from the strong growth in the Indian infrastructure sector, and it has a healthy order book and a strong balance sheet. However, there are some concerns about the company’s exposure to the roads segment, which has been facing some challenges in recent months.
Here are some specific analyst views:
ICICIdirect: ICICIdirect maintains a BUY rating on HG Infra with a target price of ₹1,150. The brokerage expects the company’s execution momentum to continue in the near-to-medium term, and it believes that the company is well-positioned to benefit from the strong growth in the Indian infrastructure sector.
HDFC Securities: HDFC Securities maintains a BUY rating on HG Infra with a target price of ₹1,252. The brokerage is positive on the company’s growth prospects and believes that it has a strong track record of execution.
Axis Capital: Axis Capital maintains a BUY rating on HG Infra with a target price of ₹1,140. The brokerage values the company’s core business at 10x FY25 EPS and its HAM portfolio at 1.2x book value.
Overall, the consensus among analysts is that HG Infra Engineering Ltd. is a good long-term investment. The company has a strong track record, a healthy order book, and a strong balance sheet. However, investors should be aware of the company’s exposure to the roads segment, which has been facing some challenges in recent months.
Piramal Enterprises Ltd.
Analysts are positive on PEL’s long-term prospects, with an average target price of Rs 1147.50, representing an upside of 21.33% from the current price of Rs 945.75.
Key highlights from recent analyst reports include:
Hemmo Pharma acquisition seen as positive for CDMO segment: Analysts believe that the acquisition of Hemmo Pharma will strengthen PEL’s position in the CDMO segment and provide it with access to new technologies and markets.
Valuation attractive: PEL’s current valuation of 6x EV/FY21 sales is considered attractive by analysts, given its strong growth prospects.
Positive outlook for Pharma segment: Analysts are optimistic about the growth prospects of PEL’s Pharma segment, driven by its strong product pipeline and expanding reach in India and emerging markets.
Here are some specific analyst views:
- Arihant Capital: Buy, with a target price of Rs 1225
- Axis Capital: Buy, with a target price of Rs 1175
- CLSA: Buy, with a target price of Rs 1250
- Emkay Global: Buy, with a target price of Rs 1150
- ICICI Securities: Buy, with a target price of Rs 1175
- Jefferies: Hold, with a target price of Rs 1050
- Motilal Oswal: Buy, with a target price of Rs 1200
- Systematix: Buy, with a target price of Rs 1200
Brigade Enterprises Ltd.
Here are some of the latest analyst views on Brigade Enterprises Ltd.:
HDFC Securities: The brokerage has maintained a ‘buy’ rating on Brigade Enterprises with a target price of ₹815, citing strong growth prospects in the residential segment, healthy balance sheet, and improving execution capabilities.
Emkay Global: Emkay Global has a ‘buy’ rating on Brigade Enterprises with a target price of ₹700, noting the company’s strong brand presence in South India, its track record of execution, and its diversified portfolio of projects.
ICICI Securities Limited: ICICI Securities Limited has a ‘buy’ rating on Brigade Enterprises with a target price of ₹695, highlighting the company’s strong fundamentals, its focus on luxury and affordable housing segments, and its expansion plans in Bengaluru and Chennai.
Motilal Oswal: Motilal Oswal has a ‘buy’ rating on Brigade Enterprises with a target price of ₹720, emphasizing the company’s strong liquidity position, its healthy balance sheet, and its growth potential in the coming years.
Overall, the consensus analyst recommendation for Brigade Enterprises is ‘buy’. Analysts are generally positive on the company’s growth prospects, its strong brand presence, and its healthy balance sheet.
Samvardhana Motherson International Ltd.
Here are some of the latest analyst views on Samvardhana Motherson International Ltd.:
ICICI direct: ICICI direct has a ‘buy’ rating with a target price of ₹140 per share. The brokerage expects Samvardhana Motherson to post a net sales CAGR of 5% over FY22-24E. ICICIdirect is positive due to its revival of worldwide OEM client volumes, steady order-book, and EV neutral product profile.
CLSA: CLSA has a ‘buy’ rating on Samvardhana Motherson with a target price of ₹115 per share. CLSA expects Samvardhana Motherson to benefit from the growing demand for automotive interiors, particularly in the premium and luxury segments. CLSA is also positive on Samvardhana Motherson strong balance sheet and its track record of executing acquisitions.
IIFL Securities: IIFL Securities has an ‘add’ rating on Samvardhana Motherson with a target price of ₹100 per share. IIFL Securities expects Samvardhana Motherson margins to improve in FY24E due to operating leverage and cost pass-throughs. IIFL Securities is also positive on Samvardhana Motherson exposure to the EV market.
Edelweiss: Edelweiss has a ‘hold’ rating on Samvardhana Motherson with a target price of ₹90 per share. Edelweiss is cautious on Samvardhana Motherson due to the ongoing supply chain disruptions and the rising cost of raw materials. However, Edelweiss is positive on Samvardhana Motherson long-term growth prospects.
Motilal Oswal: Motilal Oswal has a ‘neutral’ rating on Samvardhana Motherson with a target price of ₹85 per share. Motilal Oswal expects SAMIL to post a net sales CAGR of 4% over FY22-24E. Motilal Oswal is neutral on Samvardhana Motherson due to the risks associated with the current macroeconomic environment.
Overall, analysts are generally positive on Samvardhana Motherson International Ltd. They believe that the company is well-positioned to benefit from the growing demand for automotive interiors, particularly in the premium and luxury segments. However, there are some risks associated with the current macroeconomic environment, such as supply chain disruptions and rising costs.
FAQ's on Muhurat Trading
Muhurat Trading, also known as Mahurat Trading, is a special one-hour trading session conducted on the occasion of Diwali in the Indian stock market. It is considered auspicious and symbolizes the beginning of the Hindu New Year.
The tradition of Muhurat Trading dates back to the late 19th and early 20th centuries when stockbrokers would gather at the Bombay Stock Exchange on Diwali for a short trading session. It was a way to start the new year positively and seek the blessings of Goddess Lakshmi.
Many traders and investors believe that trading during Muhurat brings good luck and prosperity in the coming year. It is associated with seeking the blessings of Goddess Lakshmi, the Hindu goddess of wealth and prosperity.
Muhurat Trading is a special one-hour session held on Diwali, usually in the evening after regular trading hours. It includes all segments of the stock market, but liquidity is generally lower compared to regular trading hours.
Diwali is one of the most important Hindu festivals, and it is believed to be an auspicious time to start something new. The alignment of planets during this time is considered favorable, making it an ideal period for trading.
Initially, stockbrokers informally gathered for a short trading session on Diwali. Over time, this tradition became more formalized, with both the Bombay Stock Exchange and the National Stock Exchange holding special sessions.
Yes, during Muhurat Trading, all segments of the stock market are open, including equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB).
The pre-opening session begins at 6:00 PM and lasts for 15 minutes before the main Muhurat Trading session. It is a preparatory phase for traders and investors to set their strategies.
In 2023, Muhurat Trading will be held on Sunday, November 12, from 6:15 PM to 7:15 PM, with the pre-opening session starting at 6:00 PM.
