Brokerage firm Angel One has released its 'Shagun Ke Shares' list for Diwali 2026, featuring eight stocks across banking, defence, and infrastructure. These selections come as the Indian market navigates high inflation and rising borrowing costs following the October 2026 repo rate hike. While investors prepare for the symbolic Muhurat trading session on November 8, the brokerage focuses on long-term earnings potential rather than short-term festive gains.
Angel One has released its annual 'Shagun Ke Shares' list, identifying eight companies as potential long-term opportunities ahead of the Muhurat trading session for Diwali 2026. This year's selection arrives during a period of market volatility, where sustained foreign institutional selling has been largely offset by domestic investor buying. The report aims to look past current market fluctuations, focusing instead on companies with specific growth levers such as rising order books, expansion in manufacturing capacity, and shifts toward higher-value products.
In the financial sector, the brokerage has spotlighted ICICI Bank and Northern Arc Capital. For ICICI Bank, the focus remains on its deposit growth, though the bank is managing the challenge of maintaining profit margins amidst shifts in its lending mix. Northern Arc Capital is being watched for its move toward direct-to-customer lending, which is a strategic effort to improve its interest income. Investors should monitor how these lenders manage the current high-interest environment, as increased borrowing costs can pressure the margins of financial institutions.
The industrial and defence segments also feature prominently, with Apollo Micro Systems and Engineers India making the list. Apollo Micro Systems is noted for its focus on integrated weapon systems and a large order book. Similarly, Engineers India is viewed through the lens of its shift toward higher-value consultancy work. These companies are operating in sectors where government spending remains a key driver, though their success will depend on their ability to execute these large orders without significant delays or cost increases.
The list is rounded out by companies across healthcare and consumer spaces, including Aarti Pharmalabs, Shanti Gold, AGI Infra, and Ratnaveer Precision. Aarti Pharmalabs is attempting a pivot toward contract manufacturing, which is designed to improve its operational efficiency. Shanti Gold and AGI Infra are highlighted for their expansion plans, while Ratnaveer Precision is positioned as a play on electronics-linked manufacturing. Each of these companies faces the classic challenge of balancing expansion costs with the need for steady demand in a competitive market.
It is important for investors to view these selections with a realistic understanding of the current macroeconomic environment. As of November 2026, the Indian economy is grappling with inflation near a two-year high, and the Reserve Bank of India raised the repo rate in October to manage price pressures. Higher interest rates typically increase the cost of doing business, which can weigh on the profit margins and debt-servicing capabilities of companies, especially those in capital-intensive sectors like infrastructure and manufacturing.
Investors looking at these or any other stocks during the festive season should prioritize fundamental performance over symbolic trends. The key monitorables for these companies in the coming quarters will include their actual earnings growth, management of debt levels, and the ability to maintain profit margins despite rising costs. The Muhurat trading session on November 8, 2026, serves as a traditional start to the new year, but the long-term success of any equity investment continues to depend on the company’s operational execution and the broader economic climate.