Samvat 2080: Analysts' Top Stock Picks This Diwali

While Samvat 2079 was marked by volatility because of rising inflation and rates, and global geopolitical tensions, analysts predict that a growing Indian economy will drive gains for stocks in Samvat 2080.

Indian benchmarks crossed key levels in Samvat 2079. The Nifty 50 breached the milestone of 20,000 for the first time on Sept. 11, while the Sensex surpassed 67,900 on Sept. 15.

The NSE Nifty 50 rose 9.72%, while the S&P BSE Sensex advanced 8.35% in the Hindu calendar year, according to Bloomberg data. BSE Midcap and BSE Small Cap indices posted gains of 28.28% and 31.80%, respectively. The gains came despite the rising concerns over higher bond yields, Russia's war in Ukraine, and the Israel-Hamas war.

"The country’s macro set-up is positive and the fundamentals for Indian corporates have improved as well. Profitability across the board has also improved significantly," according to Axis Securities. Still, the brokerage cautioned that the new Samvat will be marked by ‘higher for longer’ interest rates, volatile bond yields, geopolitical conflicts and fluctuating oil prices.

According to Sharekhan, the equity market outlook looks promising, despite global market headwinds and the upcoming state and general elections. All signs point to India's strengthening position, which is set to become the world's third largest economy by FY28, he said.

(Corrects an earlier version erroneously attributed ICICI Direct Research recommendations to ICICI Securities.)