ETMarkets Fund Manager Talk | Diwali Muhurat trading for stocks you want to keep forever: Abhishek Banerjee

Abhishek Banerjee, smallcase manager who runs Lotusdew, said Diwali trading is for stocks you want to keep forever. “Some of the names I would consider are stocks like CDSL, NELCO,” he says while talking about his Muhurat trading day strategy. Edited excerpts:

What memories do you have of your first Diwali Muhurat trading experience?
It's to see firecrackers in the dark from my window while operating a trading terminal. The smell, how everyone is dressed up - all are part of the memories. Also the anticipation of making a profit no matter how small the trade for muhurat is a memory as well. This is a classic example of how in India, technology and tradition go together. The technology to operate the stock market out of business hours to honour tradition is unique to India.

Do you make it a point to trade every Diwali? How auspicious is the occasion?
Yes, I do. Unlike normal days where the purpose is just to trade, Muhurat feels like you are taking part in a close community that shares the same sentiment. This is unlike anything you will ever experience anywhere in the world. There is no market in the world which operates in the evening hours of their time - so I think this is a unique experience only Indian capital markets can provide.

What was your first Diwali pick?
My first Muhurat trade was PSU stock Engineers India.

What would be your trading/investing strategy this Diwali?
I think Diwali trading is for stocks that you want to keep forever. Some of the names I would consider are stocks like CDSL, NELCO.

Whether it is trading or investing, there is always an element of luck involved due to the sheer unpredictability of market behaviour and herd mentality. In this context, do you see Muhurat trading as an opportunity to bring luck in your favour?
Luck might work in the short term but skill works in the longer term. So depending on whether it's a short-term or long-term mindset, luck can play a huge role. Personally, for me, I do want to feel lucky by making a tiny profit at the close of Muhurat. Though eventually, it is not really important in the longer term what happens in an hour of trading without a change in fundamentals.

What would be your advice to new investors for the Muhurat trading day?
I think everyone should try it at least once just for the experience. As I said, it's an experience unique in the world.

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 are always looking to add new long-term opportunities especially related to gold. Though gold as an inflation hedge has not worked and our belief is gold is more a currency hedge than an inflation hedge in present times. We are very excited about gold-based stocks like Mannapuram, Goldiam, Rajesh Exports which we hold in our Golden Opportunities smallcase.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)