Auto, FMCG, NBFC To Gold: 9 Themes Driven By Festive Demand Push Amid Navratri, Dussehra, Diwali Celebrations

Navratri Dussehra Special: The Nifty 50 and Sensex witnessed a sharp volatility in September as a range of factors including US H-1B visa uncertainty, trade tensions, and geopolitical concerns continued to impact the market sentiment. With the beginning of the festive season in the second half of September, the Indian stock market will witness some action majorly in stocks related to nine themes, including auto, FMCG, financials, gold, etc.

As the robust consumption data, Goods and Services Tax (GST) rate cut, low inflation, and favourable policies are likely to boost consumption, multiple sectors including automobiles, FMCG, etc will benefit from the present scenario.

9 Themes To Dominate Stock Market In Festive Season

Indian festivals in the second half of the year, including Navratri, Dussehra and Diwali, are likely to act as a growth catalyst for auto components, FMCG, defence, clean energy, pharmaceuticals, gold, and four other sectors, according to smallcase managers. Here are the nine themes which are likely to benefit the most because of festive spirit.

Auto Components

The GST 2.0 implementation in September has significantly bolstered the automobile demand, especially because of the auspicious buying windows. From Maruti Suzuki, Tata Motors to Mahindra & Mahindra, many Indian automobile manufacturers witnessed a record surge in their sales in the last week of the month post GST 2.0 implementation.

According to Wright Research, the automobile demand boost will augur well for auto components sector. "With exports holding a small trade surplus, higher offtake is expected in braking systems, tyres, batteries, and electronics as OEM runs stabilise and festive travel drives aftermarket demand," according to the investment manager firm.

FMCG

The festive season spirit combined with GST 2.0 push and low inflation will significantly boost the consumption and FMCG sector, according to smallcase managers Wright Research, Niveshaay, SmartwealthAI, WealthTrust Capital.

"With GST 2.0 tax cuts improving affordability, brands passing on price benefits, and discretionary demand rising across autos, electronics, apparel, and small appliances, the outlook is for a multi-year consumption revival. They highlight that staples, beauty, and discretionary categories are expected to see sustained festive uplift. And that Navratri-Diwali 2025 is expected to act as a catalyst, reinforcing consumption as one of India's most powerful structural growth themes," stated smallcase in its press release.

Gold

Given the best monthly rally of gold in September in 14 years, Smallcase manager, SmartwealthAI, believes that the festive season push is likely to drive record gold purchases in the year. " Rising household incomes, GST-led consumption relief, and the cultural impetus of the festive season are likely to drive record gold purchases, making 2025 a year where gold is both a celebration of prosperity and a strategic hedge against macroeconomic uncertainty."

NBFCs

As the demand and sale of automobiles, electronic appliances, and other items has gained momentum, there will be a direct growth in the credit facility related to these items. As 70% of the festive season demand comes from smaller towns, the NBFCs are likely to benefit from the trend, according to GoalFi.

Pharmaceuticals & Healthcare

The Navratri and other festivals often coincide with increased health and wellness spending as consumers seek preventive care, noted GoalFi. Considering the trend and overall strong outlook for the sector, pharma and healthcare themes are likely to dominate the Indian stock market.

"Hospitals and diagnostics are expanding in tier‑2 and tier‑3 cities, with the hospital market projected at $100 billion by FY28 and diagnostic chains adding 500+ collection centers during the festive season."

Green Energy

As green energy has become the theme of the decade, festive season spirit is also likely to drive the demand for electric vehicles. Niveshaay manager believes that the festive sentiment around mobility and sustainability will boost the prospects for structural opportunities in renewables and EVs.

Capital Markets

Massive campaigns around mutual funds investment, and strong prospects for the Indian stock markets, has driven mutual fund SIP participation to record highs. The capital markets are positioned for sustained growth and wealth creation, according to WealthTrust Capital.

Infrastructure

GST rate cuts on cement and other construction materials is likely to boost infrastructure segment growth in coming months. As per Kamayakya smallcase investment manager, "the infra activity during the festive quarter, coupled with private capex recovery positions CE makers and contractors for higher utilisation in 2H FY26."

Defence

The Ministry of Defence is significantly focusing on boosting the capabilities of the Indian Armed Forces by promoting 'Made in India' equipment and warfare systems. According to Green Portfolio, the Defence sector is entering a high growth phase supported by strong order books. Hence, the sector is likely to stay relevant and attract investors attention even during the festive season.