Diwali Muhurat Trading 2026: 3 Stocks With Up to 25% Potential Upside

Indian investors looking to make the most of Diwali Muhurat Trading 2026 may consider three stocks identified by Ravi Singh, Chief Research Officer at Master Capital Services. The recommendations include Aurobindo Pharma, Balkrishna Industries and Mahindra & Mahindra, with the latter offering the highest estimated upside of 25 per cent over the next 12 months.

Speaking to War-Times, Singh said investors should approach Muhurat Trading with a quality-first investment strategy rather than focusing on short-term market speculation. He suggested using the auspicious trading session to accumulate fundamentally strong companies with healthy earnings visibility and reasonable valuations.

The recommendations come amid improving investor sentiment following a recent recovery in the Indian stock market. However, market participants should remain cautious about interpreting short-term gains as signs of a sustained rally.

Diwali Muhurat Trading 2026: Top 3 Stock Recommendations

1. Aurobindo Pharma: 13% Potential Upside

Aurobindo Pharma is one of the pharmaceutical stocks highlighted for investors considering exposure to the healthcare sector over the coming year. Its diversified business operations and earnings visibility make it a stock to watch, according to the recommendation.

The stock carries an estimated potential upside of 13 per cent over the next 12 months.

2. Balkrishna Industries: 14% Potential Upside

Balkrishna Industries is another stock included in the Muhurat Trading recommendations. The company operates in the off-highway tyre segment, supplying products for agricultural, construction and industrial equipment markets.

Its exposure to these sectors makes it an option for investors looking at opportunities linked to infrastructure, industrial activity and agriculture. The stock has an estimated upside potential of 14 per cent.

3. Mahindra & Mahindra: 25% Potential Upside

Mahindra & Mahindra leads the list with an estimated potential upside of 25 per cent over the next 12 months.

The automobile major has a strong presence in the SUV and tractor segments, giving it exposure to both India’s passenger vehicle market and rural economy. Its diversified automotive and farm equipment businesses make it a stock to watch for investors interested in India’s consumption and agricultural growth trends.

What Should Investors Keep in Mind During Muhurat Trading?

Ravi Singh cautioned investors against treating a positive Muhurat Trading session as confirmation of a sustained stock market rally.

The special trading session is generally limited to around one hour and can be influenced by festive sentiment and relatively lower participation. As a result, sharp intraday price movements may not necessarily reflect a company’s underlying financial performance.

Investors should avoid chasing stocks after sudden price increases and consider using limit orders to manage execution risks. Deploying capital gradually rather than investing a large amount in a single session may also help manage market volatility.

Singh emphasised that investors should prioritise fundamentally strong businesses, reasonable valuations and long-term wealth creation instead of aggressive short-term bets.

Disclaimer: The stock names and upside estimates mentioned in this article are based on recommendations attributed to Ravi Singh of Master Capital Services. They are not guaranteed returns or personal investment advice. Stock market investments are subject to market risks. Investors should conduct their own research or consult a qualified financial adviser before making investment decisions.