We always look at Diwali Muhurat trading day to bring in luck: Sonam Srivastava

Sonam Srivastava, smallcase manager & Founder, Wright Research, says she always looks at Diwali to bring in luck, especially in today's market when volatility has become the norm. “From gamblers to market participants everyone thinks that Diwali will make their luck shine. We keep our decisions data driven, though,” she says in this interview with ETMarkets: Edited excerpts:

What memories do you have of your first Diwali Muhurat trading experience?
I first encountered Muhurat trading while working on the algo team of a broker’s trading desk. Muhurat trading is a special day which makes lives tricky for technology-driven trading professionals. We must work extra hard on Diwali day to ensure systems work correctly.

Do you make it a point to trade every Diwali? How auspicious is the occasion?
I try not to be biased by the occasion but let data and methodology define my trading. Still, Diwali is an auspicious day where price movement has a deeper meaning. I love the celebratory event that Muharat trading is in the trading community.

What was your first Diwali pick?
When I started, I used to love picking midcaps and trying to spot the next multibagger. I would construct portfolios using screeners and allocate small amounts in the real market. I remember buying Indo Count Industries Limited as an early pick in 2013 and breaking records during the 2014 rally.

What would be your trading/investing strategy this Diwali?
We will try not to be biased by the festivities except for the fundamental rationales for change. With the festive season in view, betting on consumption-led sectors, autos, consumer discretionary and FMCG would make sense. We also love banking and would be looking to pick stocks there.

Whether it is trading or investing, there is always an element of luck involved due to the unpredictability of market behaviour and herd mentality. In this context, do you see Muhurat trading as an opportunity to bring luck in your favour?
We always look at Diwali to bring in luck, especially in today's market when volatility has become the norm. From gamblers to market participants everyone thinks that Diwali will make their luck shine. We keep our decisions data driven, though.

What would be your advice to new investors for the Muhurat trading day?
We would tell new investors to use this auspicious occasion as a step to make your first investment. This brings a special memory to your investing journey. Once you invest, trust your investments to bring prosperity with a long term vision

Diwali stock picks are very popular among both new and old investors on Dalal Street. Any ideas you would like to share with us?
We have our bets in consumer-led sectors and in banks. Our momentum smallcase is heavily tilted towards consumer stocks - autos, FMCG, cement, hotels and banking and financials at this point. These sectors are high performing but still low beta. Talking about stock picks, we like SBI, Federal Bank, Angel One and CAMS in the financial space. ITC, Jubilant Foods in consumer and for special festive cheer we like Titan and Kalyan Jewellers.


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