India’s wedding season is here: Top stocks to watch across clothing, jewellery, and hotel sectors

In a country where as many as 10 million marriages take place annually, India is currently in the midst of a bustling wedding season, spanning from November 23 to December 15. During this period, over 35 lakh marriages are set to take place, marking a significant economic upswing as families spare no expense in celebrating these joyous occasions.

Traditionally, weddings in India are synonymous with lavish spending on new clothes, exquisite jewelry, home renovation, elaborate decorations, and the acquisition of new vehicles. These celebratory customs contribute substantially to the economy as businesses witness a surge in demand for these products and services.

As businesses gear up to capitalize on the lucrative wedding market, several stocks are poised to benefit from this seasonal surge. Here are the top stocks to watch out

Clothing stocks

Fashion enthusiasts and investors alike are witnessing a stellar performance in the stock market as both Trent and Arvind Fashions report remarkable double-digit returns in the past year. Trent, in particular, has stood out with an exceptional rise of almost 87%, outpacing the benchmark by a substantial margin. In the same period, Arvind Fashions also made a commendable jump of over 26%, showcasing robust growth.

Comparatively, the benchmark Nifty rose modestly, registering an increase of over 8% in the last year. In the ongoing year, both Trent and Arvind Fashions have continued to outperform the benchmark. Trent has surged impressively with over a 96% gain, while Arvind Fashions has added over 23% to its value. Meanwhile, the benchmark index Nifty has shown a respectable increase of over 9% during the same period.

Jewellery Stocks

In a remarkable trend in the stock market, jewellery stocks have emerged as top performers, with Kalyan Jewellers India, Thangamayil Jewellery, Senco Gold, and Titan Company delivering substantial returns to investors. Kalyan Jewellers India has seen an outstanding gain of over 230% in the past year, while Thangamayil Jewellery has rallied impressively with over 180% returns.

Senco Gold, listed in July 2023, has swiftly gained momentum, marking a remarkable rise of over 72% in just three months. Titan Company, known for its enduring presence, has provided investors with a commendable return of over 28% in the past year. Notably, from a long-term perspective of five years, Titan’s stock has rallied impressively, boasting over 257% returns.

Hotel Stocks

In a notable market trend, hotel stocks have taken center stage, achieving new highs, driven by the anticipation of major events such as the G20 Summit, ICC Men’s Cricket World Cup, and the ongoing wedding season. Analysts are optimistic about the sector’s future, foreseeing potential gains over the next year, but recommend investors to consider entry points on corrections, emphasizing a long-term perspective. Key performers in this segment include Indian Hotels (33%), Kamat Hotels (93%), Taj GVK (3%), Orient Hotels (43%), and Lemon Tree Hotels (11%), reflecting impressive returns over the last year.

With ongoing weddings and upcoming festivals expected to boost the hospitality industry, investors are closely monitoring these developments. Analysts emphasize the need for a cautious approach, suggesting that while short-term corrections may occur, the long-term outlook for hotel stocks remains favorable.