New Delhi, October 20 – As India steps into the festive spirit of Diwali, investors in the equity market are gearing up for a short but eventful trading week, with focus shifting to quarterly corporate earnings, foreign fund flows, and global market trends.
With stock exchanges remaining closed for regular trading on Tuesday (October 21) due to Diwali, and again on Wednesday for Diwali Balipratipada, market activity will be compressed — but far from quiet.
In a nod to tradition, the BSE and NSE will hold a special ‘Muhurat trading’ session on Tuesday, October 21, between 1:45 PM and 2:45 PM. This one-hour symbolic session marks the beginning of the new Hindu financial year, Samvat 2082, and is often viewed as an auspicious start for investment and wealth-building.
Market analysts say that despite the truncated week, investors can expect high volatility and strong market movements, driven by a mix of domestic earnings updates and international developments.
Ajit Mishra, Senior Vice President – Research at Religare Broking, pointed out that investor focus will largely be on the quarterly results from heavyweight companies like Reliance Industries, HDFC Bank, and ICICI Bank, which are expected to influence market sentiment and direction.
“The one-hour Diwali special session on October 21 will also be closely watched for festive optimism and early cues about the market tone for the new Samvat year,” Mishra said.
He further noted that the Q2 earnings season is in full swing, with major firms like Hindustan Unilever, Colgate, Dr Reddy’s Laboratories, and SBI Life Insurance set to release their financial results during the week. These earnings will help investors assess the health of key sectors and broader economic trends.
On the global front, developments such as potential US tariffs on Chinese goods, crude oil price volatility, and currency movements will remain key factors influencing global investor sentiment and risk appetite.
Meanwhile, foreign portfolio investors (FPIs), who had been pulling out funds from Indian markets over the past few months, have shown renewed interest in October. So far this month, FPIs have invested over ₹6,480 crore, buoyed by India’s strong macroeconomic fundamentals and improving investor confidence.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, believes that the upcoming results from firms like Hindustan Unilever and Dr Reddy’s will further define the market’s earnings trajectory. He added that any positive shift in US–China trade relations could also uplift overall market mood.
Last week, the markets closed on a strong note, with the Sensex gaining over 1,450 points and the Nifty rising by nearly 425 points, as investors responded positively to early earnings reports and stable economic indicators.
Reflecting on this momentum, Ponmudi R, CEO of Enrich Money, noted that Indian equities have remained resilient, even in the face of global uncertainties such as trade conflicts, financial sector stress in the US, and fluctuating commodity prices. “Investor sentiment across sectors was strong last week, pushing markets to fresh 52-week highs,” he said.
Looking ahead, market watchers advise a balanced and informed approach, especially during the festive season when low volumes can lead to sharp price movements. While optimism is high, analysts also caution that global developments can quickly change the landscape.
As Samvat 2082 begins, investors will be hoping that the celebratory momentum seen in the markets continues well beyond the Diwali lights.