35 lakh weddings in less than a month! Which sectors and stocks should you invest in this season?

To put things into perspective, according to a survey conducted by the Confederation of All India Traders (Cait), between November 23 and December 15 this year, approximately 35 lakh weddings are expected to take place across the country, creating a significant economic surge in the wedding industry. The Cait Research & Trade Development Society survey estimates a flow of about ₹4.25 lakh crore in wedding-related purchases and services.

This has the potential to generate ₹1 lakh crore for businesses in this sector. Last year, 32 lakh weddings occurred during the same period, with expenses totalling approximately ₹3.75 lakh crore.

In Delhi alone, more than 350,000 weddings are expected to take place, accounting for around 10 percent of the total number of weddings between these dates in India.

With so many weddings ahead, from hotels to retails, many stocks and sectors would get a massive boost. Let’s see which stocks and sectors analysts pick to invest in this wedding season.

Siddhesh Mehta, Research Analyst, SAMCO Securities

During this wedding season, strategic investments in the hotel sector is advisable, given the increased demand for event venues and accommodations. Simultaneously, the jewellery sector presents growth opportunities as weddings drive heightened consumer spending on precious ornaments. Additionally, the retail sector benefits from a surge in wedding-related attire and accessory purchases. These sectors capitalise on celebratory expenditures, making them favorable choices for investors seeking opportunities aligned with the wedding season’s economic dynamics.

Our top picks among these sectors include Lemon Tree Hotels and Titan.

Preeyam Tolia, Senior Research Analyst – FMCG and Retail, Axis Securities

Longer wedding days and a robust festive season in H2FY24 will benefit the retail sector. Our top picks in this sector based on the above thesis are – Trent, ABFRL, and Bata.

Vinit Bolinjkar, Head of Research, Ventura Securities

There is an expected uptick in purchases of gold, apparel, and various services, with industries related to jewellery, clothing, shoes, and designer wear likely to experience a mid-teen percentage growth from late Nov 2023 through to Jan 2024.

Our top picks in these segments are: 

Titan Company, Kalyan Jewellers

Saisilk (Kalamandir)

Trent

Bata, Redtape

Manoj Dalmia of Proficient Group of Companies

Stock performance during the wedding season is influenced by factors such as consumer behaviour, industry trends, and market conditions. Sectors experiencing increased activity during this time include:

Consumer Discretionary: Companies in consumer goods related to weddings, such as clothing, jewellery, and luxury items, may see the improved stock performance. This includes apparel brands, jewellery chains, and luxury goods companies.

Hospitality and Tourism: Stocks of hotels, resorts, and travel companies can benefit from the wedding season due to increased travel and accommodation bookings.

Consumer Finance: Financial institutions offering wedding loans or credit products may experience heightened demand during this period.

Event Management and Services: Companies providing event planning, catering, photography, and other wedding-related services may see increased demand.

However, naming specific stocks is challenging due to unpredictable factors. Additionally, from November 1-15, Foreign Portfolio Investors (FPIs) in the Indian market were net sellers, with notable selling in sectors like automobiles, financial services, and information technology. Conversely, FPIs were buyers in the healthcare, consumer services, realty, and mining sectors. The total value of shares sold during this period was ₹9,344 crore across 16 out of 24 sectors, as per data from the National Securities Depository Ltd (NSDL). This information provides insights into FPIs’ recent preferences and adjustments in the Indian market. One may focus on consumer services and realty considering the wedding theme.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Updated: 28 Nov 2023, 03:13 PM IST