What Makes Ramesh Damani See Opportunity in Diwali Theme Trades?
Market veteran Ramesh Damani believes that the upcoming Diwali season offers investors a special opportunity to align with India’s policy-driven growth story. Known for his long-term optimism on India’s equity markets, Damani has identified selective sectors that could outperform as the nation accelerates public spending and manufacturing investments.
He remains particularly bullish on public sector stocks, especially in shipbuilding, infrastructure, and rare earth segments. According to Damani, the government's push for self-reliance and higher capital expenditure continues to act as a major tailwind for these industries.
Damani noted that India’s industrial cycle is entering a fresh expansion phase, backed by rising defense orders, domestic shipbuilding capacity, and large infrastructure tenders. He expects these structural reforms to translate into earnings momentum for several public sector enterprises (PSEs) during FY26–FY27.
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Beyond the PSU theme, Damani is also optimistic about emerging sectors that align with India’s digital infrastructure vision — including pharma, semiconductors, data centers, and communication networks. These industries, he believes, represent India’s next frontier of value creation, especially as global supply chains diversify away from China.
He highlighted that India’s public sector narrative is no longer about inefficiency but about strategic revival. With consistent government support, better corporate governance, and steady dividend yields, PSU counters have seen renewed investor interest in 2024–25. The recent rally in shipbuilding and defense PSUs, for instance, has drawn parallels with the earlier capital goods revival cycle.
| Sector | Key Driver | Diwali Theme Potential |
|---|---|---|
| Shipbuilding & Defense | Government orders & export focus | High — rising Make in India initiatives |
| Infrastructure | Public capex and PLI schemes | Strong — long-term allocation theme |
| Pharma | R&D and export recovery | Moderate — selective midcaps attractive |
| Semiconductors | Government incentives for fabs | Emerging — long gestation play |
| Data Centres | Digital infrastructure demand | High — structural digital growth |
Damani’s festive-season strategy resonates with a broader institutional shift toward India’s cyclical and manufacturing stories. He argues that while global markets face uncertainty, India’s fiscal stability and investment-led growth model offer a dependable opportunity for patient investors.
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Damani also advised retail investors to use the Diwali Muhurat session as a symbolic opportunity to reaffirm long-term investing discipline rather than speculative bets. “The best returns come when optimism meets patience, not panic,” he noted in a recent interaction. His words underscore the importance of quality, governance, and long-term conviction as the cornerstones of wealth creation.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Damani’s festive outlook is consistent with India’s structural reform cycle. Sectors tied to infrastructure, PSU capital expenditure, and semiconductors may continue outperforming through FY26, especially if earnings momentum sustains. However, investors should stagger entries and avoid chasing short-term rallies.
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Related Queries on Diwali Investment Themes
- Which PSU Stocks Can Benefit From Diwali Theme Trades?
- Why Is Ramesh Damani Bullish on Shipbuilding and Infrastructure?
- How to Build a Diwali Portfolio With Long-Term Value?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
