Diwali is one of the biggest festivals in India. This festival of lights ignites a new spark among the investors to look forward to the Muhurat Trading session, an auspicious time to make investments. The Muhurat trading session, which typically falls on Diwali, is considered highly auspicious in the Hindu calendar.Many investors treat it as a custom, but during this festive season, there is a significant surge in consumer demand, making specific sectors and companies more attractive for investment.🪔 Did you know: This year, Muhurat Trading is happening on 21st October 2025, at 13:45 pm to 14:45 pm. Enjoy trading at ₹0 brokerage on all segments on Dhan.Based on festive demand trends and historical performance, we have identified the top 5 stocks to watch this Diwali.5 Best Stocks for Diwali 2025Here are the potential stock picks for Diwali 2025:Maruti SuzukiIn India, Cars and 2-wheelers are often purchased during festive seasons like Navratri and Diwali, backed by festive offers and discounts. Maruti Suzuki has consistently demonstrated stronger sales during the festive season over the last five years.Recent GST rate cuts from 28% to 18% for sub-1,200 cc cars, a government initiative aimed at boosting the automotive sector, combined with festival discounts, have significantly increased bookings this year. The company is set to launch the Maruti Suzuki Escudo, a new mid-sized SUV, this Diwali. Over the past five years, the stock has increased by 142.97%. FinancialsQ3FY23Q3FY24Q3FY253Y CAGR %Revenue29,25133,51338,7649.84%Operating Profit3,3734,4405,07614.60%PAT2,4063,2073,72715.71% TitanAfter Diwali, the wedding season starts, which typically boosts jewellery sales. Festive and gift-buying often boost jewellery volumes and sales for the quarter. With brands like Tanishq and CaratLane, the company has a retail footprint of approximately 505 stores and enjoys growing demand for gold and jewellery every year during the Diwali festival. Over the last five years, Titan’s stock has exhibited a long-term uptrend around Diwali. FinancialsQ3FY23Q3FY24Q3FY253Y CAGR %Revenue11,60914,16417,74015.18%Operating Profit1,3471,5651,6747.51%PAT9131,0531,0474.67% Kalyan JewellersKalyan Jewellers is one of the strongest players in the market, with a rapid expansion in both traditional and modern consumers. The stock has shown robust growth over the last five years, yielding returns of approximately 634.5%. Demand typically increases during festive seasons, such as Diwali. FinancialsQ3FY23Q3FY24Q3FY253Y CAGR %Revenue3,8845,2237,27823.29%Operating Profit3273704309.56%PAT14818021913.95% Avenue SupermartsAvenue Supermarts (DMart) is a must-watch stock for Diwali 2025, supported by substantial revenues, consistent expansion, and leadership in the organised retail sector. During Diwali, the company experiences a rise in sales, particularly in the grocery, household, and apparel categories. Its cost-efficient business model enables it to offer low pricing and attract high footfall, thereby maintaining market leadership.The company has shown a bullish trend during the Diwali period, indicating a strong upward movement in its stock price. Over the last 5 years, the stock price has increased by 114.28%. FinancialsQ3FY23Q3FY24Q3FY253Y CAGR %Revenue11,56913,57215,97311.35%Operating Profit9651,1201,2178.04%PAT5906907247.06% Asian PaintsAsian Paints is the leading player in the Indian paints and home decor sector. The rise in demand for paints and home decoration during Diwali benefits the company. Positive quarterly results, advantages from recent GST restructuring, crude oil pricing, and innovative marketing campaigns make this stock appear attractive. Over the past five years, the stock has increased by 21.62%. FinancialsQ3FY23Q3FY24Q3FY253Y CAGR %Revenue8,6379,1038,549-0.34%Operating Profit1,6112,0561,6370.54%PAT1,0971,4751,1280.93% Final ThoughtsDiwali often brings unique opportunities in the stock market, with certain stocks and industries benefiting from rising demands and increased consumer spending. The above-listed stocks have demonstrated strong fundamentals, market leadership, and have followed seasonal demand trends, making them indeed noteworthy to watch.