- Bullish trend in housing, auto, jewellery, textile, electronics stocks in Sep-Nov
A good monsoon across the country is expected to increase consumer demand. The period between September and November is special not only for the enjoyment of festivals but also for the market and the economy. During these three months, houses, vehicles, jewellery, clothes, electronics and lifestyle items are sold in huge quantities. Its direct impact is being seen on the shares of this sector. If an investor invests wisely, he can get strong returns during the festive season.
Sensex rose 3.33-14.3% between September and November from 2019 to 2023, pointed out Raj Vyas, vice-president of booms. Fundamentals are getting stronger this year too which investors can benefit from. Considering the strong position in the market for some time now, a bullish trend can be seen during the festive period this year as well. If we look at the trends of the last 10 years, stock markets have generally risen steadily. Shopping is good during festivals.
This is why indices like Sensex-Nifty give higher than average returns. Many sectors have performed very well post 2020. Nifty realty index registered strong growth. The real estate sector has returned 302% or more than 4 times in the last 5 years. Metal sector gave 286% return and automobile sector gave 256% return. In fact, consumer spending increases significantly around festivals like Diwali. Due to which the stock market and some sectors are seeing a surge. The demand may increase in the future.
Auto, realty stocks are likely to rise Many consumer-related sectors see good growth during the festive period. Buying property during festivals is considered auspicious. Because of this, sectors like real estate are performing well during the festivals. The automobile sector is also booming due to festive offers. Nifty Auto has returned 152% in the last three years. FMCG, infrastructure and metal have also performed well.
Stocks of this sector are expected to rise
- FMCG: The FMCG (daily use items like soaps, pastes) sector benefits from increased consumption during the festive period. Monsoon has been very good this year. Rural demand is increasing.
- IT: Demand for outsourcing may increase due to falling interest rates in the US. This growth will be seen during the festive season. Due to this, IT services sector stocks can perform well.
- Banking: Along with home loans, auto loans and personal loans, credit card business also increases during festivals. Due to this, banking shares generally increase.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
