Diwali Muhurat Trading 2025 Stock Picks: HDFC Life, PFC, RIL Among Top 5 Recommendations From Religare

Muhurat Trading is a special one-hour session in the Indian stock markets held on Diwali. This year, it will take place on Tuesday, 21st October 2025, from 1:45 PM to 2:45 PM IST, an afternoon slot instead of the usual evening hours.

During this session, investors trade believing it brings wealth and prosperity for the year ahead. The Bombay Stock Exchange started the tradition in 1957, and the National Stock Exchange followed in 1992.

Even though the markets remain closed for the rest of Diwali, this hour usually sees a spike in trading activity as investors participate in this auspicious ritual.

This Diwali, Religare Broking has shared its list of top stock picks for Muhurat Trading 2025.

Diwali Muhurat Trading 2025 Top Stock Picks

HDFC Life Insurance

Investment Rationale: Religare said HDFC Life Insurance has a “strong growth trajectory” and “industry-leading profitability metrics,” which support its premium valuation. The company’s wide range of products and focus on digital distribution continue to drive steady growth. Its persistency ratios also remain among the best in the sector.

The report added that “the company demonstrates strong operational discipline by maintaining stable Value of New Business (VNB) margins at 25.1 per cent,” showing it can sustain profitability even amid regulatory changes.

Valuation: Religare expects the insurer’s Embedded Value to grow at over 17 per cent annually through FY27. It values the stock at 2.6 times its FY27E embedded value.

Power Finance Corporation

Investment Rationale: Religare believes Power Finance Corporation’s (PFC) strength lies in its “strategic role in financing India’s energy transition.” The company’s loan book is expanding on the back of a “renewed thrust from the private sector, particularly in renewable energy and power distribution,” helping it maintain strong double-digit growth. Profitability is stable, with net interest margins expected to stay around 3.8 per cent, and asset quality continues to be strong.

Valuation: Religare values the stock at 0.9 times its FY27E adjusted book value, indicating limited downside risk due to the company’s solid balance sheet and long-term growth drivers.

Mahindra & Mahindra Financial Services

Investment Rationale: Religare sees Mahindra & Mahindra Finance as a direct play on India’s improving rural economy and consumption trends. Its close link with parent Mahindra & Mahindra acts as a key growth driver. A sharper focus on cost control and digital initiatives is also helping the company improve efficiency and profitability. The brokerage notes that the company “is poised for improved profitability, driven by an expected expansion in Net Interest Margins (NIMs) as borrowing costs ease.”

Valuation: The valuation looks reasonable at 1.4 times its FY27E adjusted book value, supported by “steady AUM growth, improving cost efficiencies, and stable asset quality.”

Nuvoco Vistas

Investment Rationale: According to Religare, Nuvoco’s growth is anchored in “strong operational performance, characterised by healthy revenue growth driven by a balanced increase in sales volumes and improved pricing realisations.” The company’s margins have reached multi-quarter highs, supported by “rigorous cost-control measures, including savings in power and fuel.” The brokerage adds that the “strategic acquisition and fast-tracked integration of Vadraj Cement” has strengthened Nuvoco’s capacity and expanded its footprint in Western India.

Valuation: Religare values the stock at around 7.4 times its FY27E enterprise value to EBITDA, offering good visibility for earnings growth as the company continues to reduce debt and invest in future expansion.

Reliance Industries

Investment Rationale: Religare says Reliance Industries, as India’s largest private sector enterprise, has “strong and diversified earnings from energy, telecom, and retail.” The report notes that the “New Energy ecosystem is nearing a major inflexion point,” as the Jamnagar giga-factories are expected to begin monetising soon. It further says that the company’s consumer-focused businesses, Jio and Retail, are “positioned to be the primary drivers of future growth and profitability.”

Valuation: According to Religare, “the current valuation does not fully capture the immense value-unlocking potential” from these new ventures, leaving meaningful room for re-rating as these segments continue to grow.