The Diwali glow is spreading from homes to Dalal Street as the Indian stock market enters one of its most vibrant weeks of the year. With the festival of lights marking both cultural celebration and financial optimism, investors are preparing for an active trading week. Analysts are already betting on stocks like Hyundai Motor India and Laurus Labs, signaling that festive momentum could spill over into the markets as well.
Markets Stay Open During Diwali Week
While many assume that Diwali brings a trading holiday, the Indian stock market will remain open on Monday, October 20, 2025. Both the NSE and BSE will function on regular hours, allowing traders to participate in what experts call one of the most crucial sessions before the symbolic Muhurat trading event.
According to official exchange announcements, the Muhurat trading session will be held the following day, Tuesday, October 21, from 1:45 pm to 2:45 pm, with a short pre-open session starting at 1:30 pm. This special one-hour window is more than just symbolic; it represents the start of Samvat 2082, the new financial year in the traditional Hindu calendar.
Market veteran Ajay Thakkar, an equity strategist based in Mumbai, shared, “Diwali week has always been more about sentiment than statistics. Even a short Muhurat session often sets the tone for how traders perceive the coming year. Investors see it as a fresh start, a moment to invest with positive energy.”
A Festive Start with Optimism and Energy
The tone this year is upbeat. Global cues remain moderately positive, and domestic demand is showing resilience. Many analysts believe that the festive season, along with improving corporate earnings, could give the Nifty 50 an upward nudge. Some even predict the index could test 26,000 levels before the end of Samvat 2082 if the momentum continues.
The week also coincides with the release of major corporate results, including Hindustan Unilever, SBI Life Insurance, and ICICI Lombard, which are expected to reveal solid numbers for the September quarter. These results could further reinforce the bullish outlook already visible across sectors like auto, pharma, and banking.
Top Stock Picks for Diwali Week 2025
Among the numerous recommendations circulating in the market, Hyundai Motor India and Laurus Labs are emerging as clear favorites.
1. Hyundai Motor India:
The company’s rapid expansion plans have caught the market’s attention. With Hyundai’s push toward electric mobility and strong export numbers, experts believe it’s positioned for long-term growth. The automaker is reportedly preparing new EV models tailored for both Indian and global markets. Analysts from brokerage firms note that Hyundai’s focus on localization and premium segment innovation could drive a potential upside of 15–18 percent over the next quarter.
Financial consultant Ritika Mehra explained, “Hyundai’s story in India has moved beyond cars; it’s about innovation, sustainability, and consistent profit margins. Investors see it as a stable performer amid global uncertainty.”
2. Laurus Labs:
The Hyderabad-based pharmaceutical company has also made it to the “buy” list for Diwali week. Laurus Labs has been strengthening its presence in Active Pharmaceutical Ingredients (API) and contract research segments. With global demand for affordable healthcare rising, Laurus is expected to benefit from export growth and margin improvement.
According to analysts, Laurus Labs shares could see a 10–12 percent upside in the medium term if quarterly earnings meet street expectations. The company’s strong R&D pipeline and partnerships with global healthcare players make it a promising choice for investors looking for consistent long-term returns.
3. Bonus Mentions:
Market experts are also keeping a watch on Delhivery, PG Electroplast, and Aurobindo Pharma, which have shown technical strength and steady accumulation over the past few sessions.
Investor Sentiment and Strategy
Investor psychology around Diwali is unique. It blends tradition with financial ambition. The Muhurat trading session is considered auspicious, prompting families and traders to make token investments even if for small amounts. The belief is that any trade initiated during this period brings prosperity and success for the new financial year.
Still, market watchers caution that sentiment alone cannot sustain a rally. Technical indicators suggest mild volatility in the sessions leading up to Diwali, especially in the small and mid-cap space. For short-term traders, this means managing risk through stop-loss strategies, while long-term investors should focus on quality stocks with solid fundamentals.
Analyst Deepak Rajan summed it up well, saying, “The festival mood is infectious, but emotions should not drive your portfolio. Use this time to realign your investments, trim the excess, and add quality names that you truly understand.”
Outlook Beyond Diwali
Looking ahead, the broader sentiment remains cautiously optimistic. As inflation continues to stabilize and India’s GDP growth outlook improves, the equity market could see fresh highs in the next few quarters. Sectors such as auto, energy, pharma, and tech are likely to dominate attention, supported by improving earnings visibility.
For new investors entering the market this Diwali, experts recommend starting small but staying consistent. Historical data shows that portfolios initiated during Diwali have often outperformed over the following year due to disciplined investment and positive market cycles.
Final Thoughts
The Diwali 2025 trading week is shaping up to be both festive and financially meaningful. With markets open, a special Muhurat trading session, and strong buy recommendations like Hyundai Motor and Laurus Labs, investors have plenty to look forward to.
Whether you trade actively or simply invest symbolically, the key lies in balance — blending tradition with smart strategy. As Diwali lights up homes across the nation, Dalal Street too glows with optimism and opportunity.
Happy Investing and Happy Diwali!