The Indian stock market has lagged behind global peers this year, with benchmark indices Sensex and Nifty 50 staying nearly flat over the past 12 months. Analysts attribute this muted trend to factors such as global trade tensions, higher US tariffs, weak corporate earnings, foreign capital outflows, and geopolitical uncertainties.
However, the outlook for the second half of FY26 appears more promising, supported by improving earnings growth, lower interest rates, easing geopolitical risks, and progress in trade negotiations. The festive season, combined with recent GST rate cuts and hopes of a US-India trade deal, is also expected to spur consumer demand.
JM Financial’s top Diwali 2025 picks include: Maruti Suzuki (Buy, ₹19,000 target) with strong earnings growth and improving returns; Axis Bank (Buy, ₹1,330) offering attractive valuations and healthy loan growth; L&T Finance (Buy, ₹300) backed by rising retail momentum; Apollo Hospitals (Buy, ₹9,000) valued on a SOTP basis; Lloyds Metals (Buy, ₹1,680) supported by robust core operations; Ratnamani Metals (Buy, ₹2,900) positioned for sector growth; and Astral (Buy, ₹1,600) expected to deliver steady revenue and profit expansion.
