Shubh Din, Shubh Nivesh: Looking For An Auspicious Start To Your Investment Journey?

Token investing during Muhurat Trading can bring good fortune and prosperity in the upcoming year, according to tradition.

Token investing during Muhurat Trading can bring good fortune and prosperity in the upcoming year, according to tradition.

(Image Credit: ICICI Direct)

*This is a sponsored article in collaboration with ICICI Direct.

For many years, investors have typically seen positive returns during the Muhurat Trading session. (Data Source: BSE)

(Image Credit: ICICI Direct)

For many years, investors have typically seen positive returns during the Muhurat Trading session. (Data Source: BSE)

(Image Credit: ICICI Direct)

For many years, investors have typically seen positive returns during the Muhurat Trading session. The BSE Sensex has reportedly closed higher in 13 of the previous 17 Muhurat sessions, recording a 355-point increase in 2023. However, given that Muhurat Trading occurs for a limited time, investors should adapt their strategies to account for this small window.

“Because volumes are also low, and the overall depth in the market is not there compared to normal days, intraday is completely ruled out, ” says Pandey. However, he explains that Investors can look at token buying of stocks or mutual funds.

Investors must evaluate stocks and sectors for trading on Muhurat with the same lens they do on normal days, and conduct thorough research on market trends, stock performance and potential investment opportunities before participating.

“Utilise equities as a key asset class for long-term wealth generation, and this can happen by investing in quality companies which have got a strong earnings visibility, a stable cash flow and good growth visibility, return on equity (ROE) and return on capital (ROC),” Pandey explained.

Capital Goods, Infrastructure Among Sectors With Potential; Silver To Sparkle

Capital goods, infrastructure, banks, IT and pharmaceutical stocks show upside potential.

(Image Credit: ICICI Direct)

Capital goods, infrastructure, banks, IT and pharmaceutical stocks show upside potential.

(Image Credit: ICICI Direct)

For investors who are new to investing or unsure about their strategy for Muhurat Trading, it is always a good idea to consult with financial experts or reputed brokers. They can provide guidance on how to invest during Muhurat Trading and deliver valuable insights into stocks and sectors which have a positive future outlook.

With regard to sectors with upside potential, Pandey suggests capital goods, infrastructure, banks, IT and pharmaceutical stocks. “One way to play the markets is asset management companies,” says Pandey, of the companies which invest pooled funds of investors into various assets and securities.

When it comes to commodities, Pandey again has some insightful views. While gold is a good hedge against inflationary pressures and has a positive outlook as bigger economies are going to expand their fiscal deficit, “silver looks better than gold at this point in time,” says Pandey. Even as physical gold remains in demand during the festive season, gold exchange traded funds are also a good option for investors, considering the ease of investing in them, lower costs and tax efficiency.

Summary

As the auspicious hour of Muhurat Trading approaches on Nov. 1, it’s time to let the blessings of divine at Diwali mark the beginning of a new investment season. However, festive fervour shouldn’t overshadow the importance of thorough research and focus on fundamentals. By letting a reputed stock expert guide critical financial decisions, diversifying “Shubh Nivesh” across sectors with potential—such as capital goods, infrastructure, banks, IT and pharma—combined with commodities like gold and silver and gold ETFs, investors can let the “Shubh Din” set the tone for a prosperous year ahead.

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