Which sectors shine between Dussehra & Diwali?

Come Diwali and the streets of India are buzzing with life — sound of crackers, hum of cash registers, scent of sweets, colours decorations on doorsteps and beautiful lighting everywhere! But India doesn't just light up with diyas on Diwali, the country’s economy lights up too. People shop for new clothes and gifts, the travel sector gets in action, sweets fly off shelves, and vehicles and appliances are hot on promotion - giving a big boost to the economy.

For businesses, investors, and consumers alike, this festive season is more than celebration; it is the perfect time to boost revenues, spot investment opportunities, and make the most of exciting offers.

Between sweets, shopping, and shubh muhurats, another ritual quietly plays out — the festive season gives the Indian economy a boost, and some sectors outshine the others, particularly consumption-driven sectors.  

Without further ado, here are the six sectors that shine particularly bright during the festive Diwali season: 

Logistics and Quick Commerce

Diwali means shopping spree, whether it is picking gifts for family and friends, buying new clothes, sprucing up our homes, or stocking up on festive treats. With crowded markets and heavy traffic, many of us turn to online platforms for the convenience they offer. Festive offers and last-minute shopping have also become a common trend. All this extra demand fuels the growth of third-party logistics and quick commerce, and with it, the sector is expected to create over 2 lakh temporary jobs for last-mile delivery, warehouse management, and supply chain support.

Some of the notable stocks in the logistics and quick commerce sector include Eternal, Nykaa, Zomato, Delhivery and VRL Logistics.

Tourism and Hospitality

In 2024, during the festive season, the tourism and hospitality sector saw hotel occupancy rates peak at 78% across Tier 1 cities and 65% in Tier 2 destinations. Domestic air travel rose 22% YoY, while spiritual circuits like Varanasi and Ayodhya recorded a 40% increase in footfall.

Regarding the sector’s overall contribution, it accounted for ₹21.15 lakh crore of the GDP in calendar year 2024. This year, domestic travel is projected to rise between 15–18% due to better connectivity, e-visa facilitation, and the expansion of the PRASHAD scheme. Hospitality players are expecting their occupancy to surpass 80% due to attractive festive packages and increased demand for homestays, particularly in heritage and pilgrimage hubs. IRCTC, Thomas Cook, Indian Hotels, TBO Tek, Interglobe Aviation, EIH are some of the top travel and tourism stocks in India.

Automobile Sector

If there’s one sound that rivals crackers in October, it’s the sound of new vehicles revving up, and this year, it is expected to see a higher growth in the automobile sector.  

The rollout of GST 2.0 and manufacturers directly passing the cost benefit to consumers have led the automobile sector to expect a revival. As per the new GST, petrol-engine vehicles under 1200cc and diesel cars under 1500cc, both under four metres in size, attract an 18% rate without compensation cess, down from the previous 28% tax and 1–3% cess.  

Here is how key manufacturers fared. Tata Motors hit its highest-ever monthly passenger vehicle sales at 60,907 units in September 2025, a 47% increase on a YoY basis. The electric vehicle (EV) saw 96% growth to 9,191 units, while CNG models crossed 17,800 units.

In the two-wheeler segment, Royal Enfield posted a historic high of 1,24,328 units, up 43% YoY, while Bajaj Auto rose 8% to 4,30,853 units, with exports jumping 12%. To sum up, looking at the current trend, the automobile is going to see a strong growth this festive season and can be one of the best sectors to invest in long-term.

Hero MotoCorp, Maruti, Tata Motors, Mahindra are some of the top stocks that will benefit from festive demand growth, if you are betting on the electric vehicles growth story then consider players EV stocks in India like Ola Electric Mobility, Aether Energy

Apparel and Fashion

Today, consumers are not only shopping for Diwali, but they are also shopping to take good pictures for social media and as a part of their status symbols. According to Hansa Research’s Festive Insights, 72% of urban consumers plan to increase their festive spending this season. Of this, 39% plan to spend much on fashion and apparel. A healthy macroeconomic environment backs the sector’s strong momentum.  

India’s apparel market in 2023 was valued at $106.9 billion and is projected to expand to $146.3 billion by 2032 at a CAGR of 4%. Higher disposable incomes, an increasing middle class, and the widespread adoption of digital-first shopping habits are driving the rise.

Hybrid retail is now mainstream. 80% of customers now plan to shop online, while 25% will consider offline and digital channels. Listed players like Aditya Birla Fashion & Retail Ltd (NSE: ABFRL), Vedant Fashion (NSE: Manyavar), Trent Ltd, Go Colors, V2 Retail are capitalising on this shift with AI-driven personalisation, festive collections, and sustainability-led campaigns.  

Precious Metals

For centuries, Dhanteras has been the day when sentiment and metal prices rise together. Gold has risen over 47% year-to-date. It has breached ₹1,18,000 per 10 grams on MCX, with projections touching ₹1,22,000 by Diwali. Silver has outpaced gold, rising 52%, trading above ₹1,44,000/kg, and could reach ₹1,50,000/kg amid industrial and green energy demand. Despite the high prices, cultural sentiment and auspicious buying traditions remain strong. For example, festive gold purchases typically spike 30% during Dussehra.

To support the growing demand, listed players such as Titan Company Ltd. and Kalyan Jewellers India Ltd. are innovating with lightweight designs and flexible financing, capturing value despite the softness in volume. Companies like Rajesh Exports, P N Gadgil Jewellers are also worth watching. You can also invest in gold and silver ETFs and directly benefit from changes in gold prices.

Others

Consumer goods stocks, FMCG companies and paint companies also benefit from the skyrocket demand during the festive season. Some of the notable stocks to look in these segments include Asian Paints, Kansai Nerolac Paints, Whirlpool, Voltas, Blue Star, HUL, and Britannia Industries, among others.  

When people shop – no matter how big or small, the credit industry also thrives. From home loans, car loans to personal loans everything is in demand during the festivities that start from Navratri and go on until after Diwali. Banking and NBFCs, which enable credit growth, also perform well as lending activity gets the festive season kick. ICICI Bank, Muthooth Finance, Bajaj Finance, Tata Capital, Kotak Bank and SBI are some of the notable players in the banking and NBFC sectors. 

Between Dussehra and Diwali, smart investors should pay attention to seasonal trends and spot fundamentally good companies that can benefit from festive tailwinds, such as automobiles, fashion, logistics, hospitality, and precious metals. Rising consumer demand, improved sentiment, and policy support like GST 2.0 create near-term opportunities.  

However, always focus on adhering to your investment goals before investing and do your research well. You should never forget that past performance is no guarantee for future returns. Don’t forget, the festive boost, while significant, is temporary and may not always translate into long-term growth. After all, the festival of lights may last a week, but the right investments can keep your portfolio glowing all year round.