For now, It is celebration hour!
Diwali brings special cheer to the stock market. The deeper connect with the auspicious day, the opening of the new books by large sections of investors (though it has become more symbolic than anything else) and the association of the mahurat with good tidings make the day special to Indian investors. We also have a history of identifying the market’s positions with Diwali. There used to be a time when brokers would always say the market’s best prospect of hitting new highs will be around Mahurat. But, a lot of these things have changed. Investing has become more secular and inclusive. Naturally, the sentiments associated with mahurat, lakshmi puja and Diwali dont quite hold sway over market sentiment anymore. It has become a day when investors celebrate their performance and spread cheer among themselves. The sentiments are more personal and nostalgic. A bigger event hovers over our markets. That is the outcome of the US elections and the impact on global markets. As an economy that needs to take tough political and economic decisions which could potentially spook global markets, the US markets presents the biggest risk to our investing. With stretched valuations and low growth, there could be surprises in store for us.
“The individual investor should act consistently as an investor and not as a speculator.”– Ben Graham