Q2 Numbers To Drive The Markets This Diwali

The festive days are back and the days of earnings too. By the time you grab this edition of your favourite investment fortnightly, you will be giving final touches on your Diwali vacation, shopping and also investment plans. Festivities are in the air and so are the thoughts of wealth generation.

To help you in taking the right investment decisions this time of the year, we have come up with a Cover Story package dedicated to building a stronger, richer portfolio with this set of seven much-researched stocks. The stocks have been carefully chosen by your seasoned research hands and can be relied upon as per the legacy of Dalal Street Investment Journal. I am sure such wise investment decisions will always take you to the roads of prosperity.

A special report dedicated to multi-baggers also has been carried in this edition. I am sure you will find the report interesting and also enlightening. At DSIJ, our efforts always remain to share with you the best and latest happening in the markets pegged with exhaustive research and analysis. I somehow think some of the cement stocks may have the potentials to turn multi-baggers in next few years from now as the sector has got immense boost with the government focussing on infra development.

Meanwhile, the days of number game have come as Q2 earnings numbers have started pouring in one by one. The numbers of the biggies are expected during the third and last week of October and I strongly hope, those will be bigger and better than Q1 numbers. This will help you to make the right choices of staying invested in the equity markets and also pick up the right stocks.

On October 4, RBI opted for a 25 bps rate cut and markets reacted very positively overshadowing the effects of India's surgical strike on terrorists in Pakistan. The war hysteria in the region could not make much dent on the stock markets in India and that shows investors' confidence.

From here onwards, for next few months, I believe small-caps and mid-caps will be the flavour. There may not be much happening in the large-sized stocks but the smaller spaces may witness excitement.

We think, with festive season, the consumer durables and consumer staples sector will also do well. Retail companies should see some positive traction and can grow on an average between 12 to 13 per cent. Auto sector will continue to do well and the major auto stocks will continue to deliver growth in the range of 12 o 13 per cent.

Globally, markets may start reacting to the possibility of a US fed rate hike in December. The US markets may dictate the global mood for equity markets in near to medium term which will affect Indian equity markets as well.

Let us together make the lights around us brighter this Diwali. Let us bring home wealth and prosperity.