As India prepares to celebrate Diwali next week, investors will welcome Samvat 2083 after a challenging year for equities.SBI Securities expects a gradual recovery after two years of consolidation. The primary catalyst for this recovery, according to the brokerage, will be a pullback in crude oil prices below $90 per barrel.“We remain optimistic about forward outlook and believe domestic equities are likely to deliver better returns on the back of double-digit earnings growth despite of vulnerable external environment, likely conclusion of trade deal between US-India, alongside India’s ongoing export basket diversification, reversal of global AI trade, which should redirect capital flows toward well diversified markets emerging markets like India and likelihood of continued reforms by the government to accelerate economic growth,” it said.Additionally, SBI Securities believes any relief in the taxation pertaining to STT or LTCG would serve as a big sentiment booster for equity markets. Going forward, it believes the sectors from where wealth creators are likely to emerge are auto OEMs and auto ancillaries, capital goods or Engineering, including defence, aerospace engineering, railway safety, power equipment, pharma ancillary, import substitution like CNC machine, BFSI, EMS, recycling, new age platform businesses, pharma – CDMO & chemicals, structural steel tubes, discretionary consumption (hotels, jewellery, alcoholic beverages etc.) and metals or mining.Also read | Diwali 2026: Sensex plunged 10,000 points, Nifty dropped 12% since last Diwali. Will Samvat 2083 bring some relief?Here are SBI Securities’ 11 Diwali stock picks
As India prepares to celebrate Diwali next week, investors will welcome Samvat 2083 after a challenging year for equities.SBI Securities expects a gradual recovery after two years of consolidation. The primary catalyst for this recovery, according to the brokerage, will be a pullback in crude oil prices below $90 per barrel.“We remain optimistic about forward outlook and believe domestic equities are likely to deliver better returns on the back of double-digit earnings growth despite of vulnerable external environment, likely conclusion of trade deal between US-India, alongside India’s ongoing export basket diversification, reversal of global AI trade, which should redirect capital flows toward well diversified markets emerging markets like India and likelihood of continued reforms by the government to accelerate economic growth,” it said.Additionally, SBI Securities believes any relief in the taxation pertaining to STT or LTCG would serve as a big sentiment booster for equity markets. Going forward, it believes the sectors from where wealth creators are likely to emerge are auto OEMs and auto ancillaries, capital goods or Engineering, including defence, aerospace engineering, railway safety, power equipment, pharma ancillary, import substitution like CNC machine, BFSI, EMS, recycling, new age platform businesses, pharma – CDMO & chemicals, structural steel tubes, discretionary consumption (hotels, jewellery, alcoholic beverages etc.) and metals or mining.Also read | Diwali 2026: Sensex plunged 10,000 points, Nifty dropped 12% since last Diwali. Will Samvat 2083 bring some relief?Here are SBI Securities’ 11 Diwali stock picks by Soban News (international And National News)
