Diwali is the perfect time to reset and review your portfolio. With the start of Samvat 2083, investors are focused on fundamentally strong companies with a promising future in the long run.
Despite market volatility, high crude oil prices, inflation, and tensions in West Asia, there are plenty of opportunities in various sectors including banking, defence, infrastructure, pharma and new-age sectors.
JM Financial Services has identified 10 stocks that can potentially provide upside returns of 15%-34% in Diwali 2026.
Here are stocks to watch out for in this year’s Diwali dhamaka.
Quick Answer: Which Are the Top Diwali Dhamaka Stocks for Samvat 2083?
The top stocks to invest in during Diwali 2026, according to JM Financial, are ICICI Bank, Bharat Electronics, Eternal, Bharti Airtel, Power Grid, Sterlite Technologies, Gravita India, Emcure Pharmaceuticals, Larsen & Toubro and Tata Steel.
The highest upside potential can be seen in Gravita India with an upside of 34%, followed by Bharat Electronics with an upside of 33%. This is based on brokerage target prices.
10 Diwali Stock Picks With Up to 34% Upside
JM Financial’s recommendations cover multiple industries, offering exposure to both established businesses and emerging growth themes.
The following figures are based on the brokerage’s research report dated 29 October 2026. The closing market prices are as of 28 October 2026.
| Stock | Sector | CMP (₹) | Target (₹) | Upside |
| ICICI Bank | Banking | 1,374 | 1,710 | 24% |
| Bharat Electronics | Defence | 364 | 485 | 33% |
| Power Grid | Power | 251 | 290 | 15% |
| Sterlite Technologies | Telecom | 879 | 1,020 | 16% |
| Gravita India | Recycling | 1,343 | 1,800 | 34% |
| Emcure Pharmaceuticals | Pharma | 1,873 | 2,362 | 26% |
| Eternal | New-age business | 327 | 400 | 22% |
| Bharti Airtel | Telecom | 1,950 | 2,400 | 23% |
| Larsen & Toubro | Infrastructure | 3,805 | 4,615 | 21% |
| Tata Steel | Metals | 169 | 195 | 15% |
Source: JM Financial Services Fundamental Research. Target prices represent brokerage estimates, not guaranteed returns.
1. ICICI Bank: Good Banking Fundamentals
The bank has robust fundamentals with solid loan growth, fee earnings and quality assets.
The bank’s loan and deposit growth in Q2FY27 was at 30% and 27% YoY respectively. The bank also has good exposure to corporate and business banking.
The target price set by JM Financial is ₹1710, indicating an upside of 24%.
Watch out for: Loan and deposit growth, NIM recovery, asset quality and credit costs.
2. Bharat Electronics: Defence Push
India’s growing focus on domestic defence manufacturing creates opportunities for companies such as Bharat Electronics (BEL).
The company has an order book worth ₹72,258 crore. It also has exposure to radar systems, electronic warfare and strategic defence, providing a good growth outlook.
The target price set by brokerage is ₹485, indicating an upside of 33%.
Monitor for: Order growth, execution, export potential and margins.
3. Power Grid: Infrastructure Growth
Increasing electricity demand and investments in renewable energy are helping companies like Power Grid.
The company has said it will be investing around ₹37,000 crore in capital expenditure during FY27. It also has a large order book.
The target price set by JM Financial is ₹290, indicating an upside of 15%.
Monitor for: Execution, capitalisation and regulation.
4. Sterlite Technologies: AI Infrastructure
Artificial intelligence relies on some powerful processors but also requires optical fibre, high-speed infrastructure and data centres.
Sterlite Technologies has optical networking infrastructure exposure. The company has an order book to the tune of ₹35,274 crore.
The target price set by the brokerage is ₹1020, indicating an upside of 16%.
Monitor for: Execution, data centre demand, margins and growth in international business.
5. Gravita India: Recycling Growth
This is one of the most interesting stocks to include in the list with the highest upside at 34%.
The company recycles lead, copper, aluminium, plastic and rubber. It has also expanded into copper recycling through the acquisition of Rashtriya Metal.
Through its Vision 2030 plan, Gravita aims to grow its recycling portfolio.
The target price set by JM Financial is ₹1800.
Monitor for: Scrap availability, raw material costs, growth plans and regulation.
6. Emcure Pharmaceuticals: International Exposure
The company has been getting attention for its international exposure and complex generic drugs.
As shown in the research report, the company grew its business in Europe and Canada by 33% and 25% respectively. It has exposure to chronic therapy, women’s health and complex generics. This should drive growth.
The target price set by JM Financial is ₹2362, indicating an upside of 26%.
Monitor for: Product approval, international revenue and regulation.
7. Eternal: New Age Business
Eternal has exposure to Zomato, Blinkit, District and Hyperpure.
Blinkit has been expanding its offering beyond groceries and this can help it grow its addressable market. The number of stores, supply chain and variety of products will be important.
The target price set by JM Financial is ₹400 indicating an upside of 22%.
Monitor for: Competition, profitability and dark store expansion costs.
8. Bharti Airtel: Cashflow Focus
Bharti Airtel is a key telecom stock. With large investments in 5G infrastructure, its capital intensity should reduce leading to better free cash flow generation.
It also has growth within its broadband, enterprise and data centre segments.
The target price set by the brokerage is ₹2400 indicating an upside of 23%.
Monitor for: ARPU growth, tariff changes, 5G monetisation and cash flows.
9. Larsen & Toubro: Infrastructure Growth
Larsen & Toubro is well positioned to benefit from the infrastructure growth and capital expenditure in India.
In Q2FY27, the company saw order growth of ₹1.48 lakh crore, bringing its order book to around ₹8.54 lakh crore. This provides good visibility into future execution.
However, delays and cost overruns could impact the company.
The target price set by JM Financial is ₹4615, indicating an upside of 21%.
Monitor for: Order growth, execution, margins and cost control.
10. Tata Steel: Improving Margins
Tata Steel has an upside of 15%.
The brokerage expects the company to see improving steel prices domestically along with safeguard duties leading to increased profitability.
Steel is a cyclical industry and therefore raw material costs, world demand and international exposure can have a large impact.
The target price set by JM Financial is ₹195.
Monitor for: Steel prices, raw material costs, world demand and margins.
Which Diwali Stock Picks Have the Highest Upside?
Based on JM Financial’s research estimates, the top three stocks by potential upside are:
| Stock | Target Price | Estimated Upside |
| Gravita India | ₹1,800 | 34% |
| Bharat Electronics | ₹485 | 33% |
| Emcure Pharmaceuticals | ₹2,362 | 26% |
These figures are calculated against the brokerage’s reference market prices. They should not be interpreted as expected returns within a guaranteed period.
How To Judge Diwali Stock Tips:
While a high target price can be tempting, experienced investors will look at the following before investing in these Diwali stock picks:
1. Fundamentals – Revenue, profit growth, debt and cash flow.
2. Valuation – P/E, P/B and other ratios compared to the average of the company historically and against the industry.
3. Technical Charts – Support/Resistance, price trends and volume.
4. Business Risk – Competition, regulation and any business related risk.
5. Timeframe – Short term traders and long term investors will need different strategies. Make sure you are investing in a stock that fits your timeframe.
Fundamental Analysis vs Technical Analysis – Which Is More Important?
| Factor | Fundamental Analysis | Technical Analysis |
| Focus | Business Performance | Price and Volume |
| Indicators | Revenue, EPS, ROE, Debt | RSI, MACD, Moving Averages |
| Purpose | Value of Business | Price patterns |
| Best For | Long Term Investors | Traders and Positional Investors |
| Question | Is the business valuable? | Is it the right time? |
For example, the company could have great earnings growth expectations, however the share price may already be taking this into account. By using both fundamental and price analysis we can get a better overall picture.
Common Mistakes to Avoid When Choosing Diwali Shares
While you are excited to choose some festive shares, here are some common mistakes to avoid:
1. Following broker’s high targets: Don’t invest simply because a stock has a high target set by a broker.
2. Ignore fundamentals: Avoid companies where you haven’t looked at the valuation, downside risks and entry price.
3. Over-investing: Don’t put everything into 1-2 recommendations.
4. Short term focus: Focus on the stocks which suit your overall long term goals.
5. No exit strategy: Always have an exit strategy.
6. Financial advice from social media: Avoid taking any financial advice unless you’ve done your own research.
Even if a company is good, don’t assume it’s a good investment. Always look at the company story, current market conditions and your own risk strategy.
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Conclusion
To begin with Samvat 2083, investors must do proper research while selecting stocks to invest in. JM Financial recommends 10 stocks from various sectors like ICICI Bank (banking growth), Bharat Electronics (defence exposure), Eternal (quick commerce) and Gravita India (expanding recycling business).
Gravita India tops the list with an expected return of 34% followed by Bharat Electronics with a 33% return. It is purely based on research from brokers.
This Diwali, learn how to analyse the market and make smart trading decisions.
