Moneycontrol Pro Panorama | Happy Diwali 

Dear Reader,

Wishing you all a happy and prosperous Diwali.

Our much-awaited Diwali picks are here. As many of you know, Moneycontrol Pro Research team’s Samvat 2077 picks outperformed the Nifty by a wide margin.

According to Madhuchanda Dey, the head of our research team, its stock picking philosophy is simple: “Focus on businesses with moats, a predictable earnings trajectory and a management to repose faith in.”

Now, Samvat 2078 is upon us. Over the next 12 months, there are many uncertainties: a sooner-than-expected tapering of asset purchases by foreign central banks that could hurt liquidity flows to emerging markets, rising inflation, supply chain bottlenecks that threaten to squeeze margins and of course, the path of COVID-19.

Against this backdrop, our research team has weighed the rewards and risks to handpick a basket of 10 stocks. This includes names from food and beverages, technology, agri-inputs, consumer discretionary sectors and so on. You can access the Diwali picks here.

This Diwali will also see a bunch of IPO issuances around the festival and after it. Today, PolicyBazaar opened, along with SJS Enterprises and Sigachi Industries. At the time of writing, the latter’s IPO had been subscribed 4.61 times. The other IPOs saw around 17-21 percent subscription.

Do read our research team’s recommendation on PolicyBazaar and SJS Enterprises.

Talking about IPOs, we also have a word of warning about borrowing to invest. So-called grey market premia are soaring for shares about to list, and this is prompting some investors to borrow heavily and bid for large quantities of shares to increase the probability of allotment. This also has pushed up interest rates in this market, making for risky bets. Read more here.

Apart from the Diwali picks and IPO analysis, our research team has the following notes for you:

Emami: Growth engines in place with investment in brands, higher penetration

For Escorts, numbers on track; demand picking up, but higher input cost a concern

Barbeque-Nation Hospitality: Is the restaurant player on track for fast growth?

Cummins India: Earnings upgrade, improving visibility to support stock

Dr Reddy’s: Aced by emerging markets’ growth

Dixon Technologies: Going from strength to strength

Cadila: Unfolding vaccine opportunity can offset US headwinds

Why investors got to add luggage stocks to their portfolio

What else are we reading today?

India is on the cusp of an upswing in the business cycle

D-Mart and Draupadi’s saree

The Eastern Window: World climate goals at risk as China drags its feet

Chart of the Day: As pandemic faded, manufacturing gained pace in October

The case for splitting China out of the EM index (republished from the FT)

Picks from our technical analysts

Canara Bank, Ambuja Cements, JK Cement and Tata Motors (These are published every trading day before markets open)

Ravi Krishnan

Moneycontrol Pro