{"id":28346,"date":"2023-11-10T16:03:12","date_gmt":"2023-11-10T10:33:12","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=28346"},"modified":"2025-06-19T15:08:20","modified_gmt":"2025-06-19T09:38:20","slug":"diwali-and-stock-market-how-did-the-markets-perform","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/diwali-and-stock-market-how-did-the-markets-perform\/","title":{"rendered":"Diwali and Stock Market: How Did the Markets Perform?"},"content":{"rendered":"
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The market sentiment<\/a> and investor outlook are positive during the festive season, especially Diwali. Many investors consider Diwali an auspicious time to make new investments<\/a> in the stock market<\/a>, hoping for positive returns in the upcoming months and years. <\/p>\n\n\n\n

Let\u2019s closely examine the market’s performance during Diwali over the last five years. <\/p>\n\n\n\n

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Diwali Investing Tips<\/a><\/div>\n\n\n\n
Investing Lessons from Diwali<\/a><\/div>\n<\/div>\n\n\n\n

How did the Market Perform in Diwali?<\/h2>\n\n\n\n

For the entire market, the long-term trend has always been favorable. This article analyzed the Nifty<\/a> 50\u2019s performance over the last five years, 30 days before and after the muhurat day trading. <\/p>\n\n\n\n

Last Five Years Performance of the Nifty 50 Index During Diwali <\/h3>\n\n\n\n

<\/p>\n\n\n\n

Nifty 50<\/a> as of 31st October 2023<\/td>19079.60<\/td>Return From Last Diwali<\/td>\u25b27.6%<\/mark><\/td><\/tr><\/tbody><\/table>
Source: NSE<\/a><\/figcaption><\/figure>\n\n\n\n

In the table above, we can see the performance of the market in the next 30 days from the date of Diwali. It has been largely positive over the last five years, except in 2021, when the market dropped by 4%.<\/p>\n\n\n\n

In terms of annual returns, the Nifty 50 has comfortably outperformed fixed deposit returns every year, except for 2022. Furthermore, the period between November 14, 2020, and November 4, 2021, proved to be the best year for investors in the last five years, with the Nifty 50 rising by more than 40%.<\/p>\n\n\n\n

And the 5 years CAGR<\/a> return of the Nifty 50 index from 27th October 2019 to 31st October 2023 is 10.41%<\/p>\n\n\n\n

Let’s look at the annual performance of other well-known Nifty indexes from Diwali to Diwali over the previous five years. <\/p>\n\n\n\n

<\/td>Nifty 50<\/strong><\/td>Nifty Next 50<\/strong><\/td>Nifty Mid-cap<\/strong><\/td>Nifty Small Cap<\/strong><\/td><\/tr>
7th Nov 2018- 27th Oct 2019<\/td>9.7%<\/td>3.2%<\/td>-6.5%<\/td>–<\/td><\/tr>
27th Oct 2019- 14th Nov 2020<\/td>9.9%<\/td>4.7%<\/td>14.8%<\/td>10.9%<\/td><\/tr>
14th Nov 2020- 4th Nov 2021<\/td>40.2%<\/td>46.4%<\/td>71.5%<\/td>79.0%<\/td><\/tr>
4th Nov 2021- 24th Oct 2022<\/td>-1%<\/td>-2.8%<\/td>-3.3%<\/td>-18.7%<\/td><\/tr>
24th Oct 2022- 31st Oct 2023<\/td>7.6%<\/td>5.0%<\/td>30.3%<\/td>33.1%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The table above shows that investors who have invested in midcap stocks have generated the most wealth compared to other stock categories over the last five years. Historically, it is evident that investments around Diwali have given positive and good returns to investors in the short and long term. <\/p>\n\n\n\n

Diwali is also considered positive for the Auto, FMCG, FMCD, and Jewellery sectors, as people prefer to shop for high-value items during this time. Let\u2019s check out how the Auto and FMCG sectors performed during Diwali.<\/p>\n\n\n\n

Nifty Auto Index<\/h3>\n\n\n\n

Nifty FMCG Index<\/h3>\n\n\n\n

When we look at the top two sectors believed to benefit the most during Diwali, the returns have been mixed with no clear trend compared to the Nifty 50 index. So, what should be your investment strategy during Diwali?<\/p>\n\n\n\n

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Best Financial Diwali Gifts<\/a><\/div>\n\n\n\n
Muhurat Trading 2023<\/a><\/div>\n<\/div>\n\n\n\n

<\/a>Investment Strategy During Diwali<\/h3>\n\n\n\n

Investing is a game of patience and discipline because it\u2019s difficult to predict the next market move, and even experts fail to do so. It is said that the entire year\u2019s return is made in 10 to 15 days on average out of 250 odd trading days for any given year. Predicting the 10 to 15 days when the market moves higher is next to impossible.<\/p>\n\n\n\n