Auto, Jewellery, FMCG: Top stocks and sectors that may hog the limelight as festive season begins

As the festive season kicks off in India on Monday, September 22, several sectors are expected to witness increased activity, driven by a rise in consumer demand. From auto and jewellery to retail, new-age companies are likely to benefit from the surge in demand.

Adding to this year’s festive cheer, the central government announced a restructuring of the Goods and Services Tax (GST) this month. The GST Council approved a rate overhaul by limiting slabs to 5% and 18%, effective from September 22, the first day of Navaratri. 

The panel approved simplifying the GST from four rates—5%, 12%, 18% and 28%—to a two-rate structure—5% and 18%. A special 40% slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

The move is expected to boost demand, providing much-awaited relief to both consumers and businesses.

In 2024, festive e-commerce gross merchandise value (GMV) was estimated at ₹1.2 lakh crore, marking a 12% year-on-year (YoY) growth, according to Redseer. The expansion of e-commerce, the shift towards premiumisation, rising demand from non-metro consumers, and strong sales across multiple product categories were all positive indicators for the Indian economy, reflecting trends observed last year.

India’s year-round festival calendar peaks with celebrations like Ganesh Chaturthi, Navratri, Durga Puja, Dussehra, Diwali, Chhath and Bhai Dooj, followed by Christmas and New Year in December-January. These festive periods typically boost consumer spending, benefiting sectors such as retail, jewellery, FMCG, and automobiles.

Here are some sectors and stocks that are likely to be in focus this year

The auto sector will majorly be on investors’ radar this festive season with the GST rate cut coming into effect from the first day of Navratri, that is, September 22. During the auspicious time of Dhanteras, some consumers prefer buying vehicles.

GST rates for the smaller cars were reduced to 18% from 28% for cars with an engine displacement of 1200cc and below 4000 mm. Meanwhile, luxury cars or SUVs which are 1200cc (petrol) and 1500cc (diesel) and 4000 mm will continue to attract a higher GST rate of 40%, which is effectively less than the 50% earlier, including 28% GST and 22% cess.

For the two-wheeler industry, bikes above 350cc will continue to attract higher GST rates, and bikes below 350 displacement will require 18% GST, down from 28%.

Earlier, automobiles were taxed at 28%, which was the highest GST slab. A compensation cess, ranging from 1 to 22%, was also levied on top of this rate, depending on the type of vehicle.

The sector has been witnessing a slowdown in the last few quarters. Passenger vehicle dispatches from companies to dealers declined 9% year-on-year to 321,840 units in August, as companies recalibrated supplies to adjust to low market demand.

Companies like Maruti Suzuki, Mahindra & Mahindra, Tata Motors and Hyundai Motor India have all slashed their prices after the GST reform. The companies expect a boost in their sales during the festive season.

Gems and jewellery firms see heightened attention during the festive season, with gold purchases peaking around Dhanteras due to its auspicious significance in India.

Gold prices have been hitting record highs in the last few days following volatility in the currency market and global economic uncertainties. The yellow metal has delivered better returns to investors compared to the benchmark indices in 2025. So far this year, yellow metal prices have risen by over 40%, while NIFTY50 and SENSEX rose 6.4% and 5.06% during the same period.

Old prices touched a record high of ₹1.14 lakh per 10 grams this week. Despite the surge, jewellery companies remain in focus during the festive season, rolling out discounts on making charges to lure buyers.

Stocks of Titan, Kalyan Jewellers, Senco Gold and PC Jewellers will be in the spotlight during the festive season.

A higher consumption of packaged foods, snacks, and household items during the festive season is likely to bring in cheer for companies like Hindustan Unilever (HUL), ITC, Nestlé India, Britannia, Dabur, Godrej, and Marico.

Companies are expected to benefit from robust rural and urban consumption as festive sentiment lifts sales across categories. The FMCG sector is set to get a strong boost, driven by rising consumer demand and higher spending on food, beverages, and personal care products.

Many consumers had deferred big-ticket purchases in anticipation of a GST cut. With the new rates taking effect on September 22, buying activity is expected to pick up. Increased demand for appliances, electronics and phones during the festive season is likely to bring some relief for consumer durables and electronics firms.

Companies such as Voltas, Havells, Crompton, Blue Star and Whirlpool are expected to witness strong festive demand. Redington, the official distributor of Apple products in India, could also benefit as the launch of the new iPhone 17 coincides with the festive season.

Meanwhile, paint and tile companies see a festive boost as home makeovers, repainting, and renovations drive strong seasonal demand. Key stocks in focus include Asian Paints, Berger Paints, Kansai Nerolac, Akzo Nobel India, Indigo Paints, Shalimar Paints, Kamdhenu Ventures and Sirca Paints.

Further, in the tiles and ceramics segment, stocks like Kajaria Ceramics, Somany Ceramics, Nitco, and Orient Bell are expected to stay in the spotlight on festive demand.

The festive season is a crucial period for India’s retail sector, as many consumers hold back major purchases through the year to shop during this time. There is always an increase in shopping demand in categories like clothing, home décor and accessories at this time.

“Stocks such as Trent, V-Mart Retail, Aditya Birla Fashion, Shoppers Stop, Reliance Retail, Raymond, and Avenue Supermarts (DMart) gained momentum as consumers always rush for last-minute festive shopping.

In recent years, India has witnessed a sharp rise in online shopping, with e-commerce platforms rolling out heavy discounts and offers to drive consumption during the festive season.

Festivals usually lead to a sharp uptick in discretionary spending on fashion, beauty, electronics, and food delivery. Nykaa and Zomato usually see volume spikes.

Nykaa-owned FSN E-Commerce Ventures is expected to see a rise in purchases with its ‘Grand Navratri Sale’ running ahead of the festivals. This boosts the GMV of the firm, attracting strong quarterly earnings.

Newly listed app-based beauty and home services platform Urban Company also sees a surge in demand during the festive season, with rising bookings for home cleaning and salon services expected to boost the company’s earnings.

Food delivery platforms like Zomato, owned by Eternal, and Swiggy witness a surge in orders during the festive season, making related stocks more attractive to investors.

These companies also drive growth through quick-commerce platforms like Blinkit and Swiggy Instamart, partnering with brands across categories—from electronics to FMCG—to further boost festive consumption.

Holiday travel sees a sharp uptick during the festive season, as people working in different states prefer heading home. At the same time, many opt for vacations to new destinations, driving higher demand for hotels and online travel booking platforms.

Hotel firms like Indian Hotels, EIH, Lemon Tree, Schloss Bangalore (Leela Palaces Hotels and Resorts) and ITC Hotels will see rising demand.

Furthermore, tour and travel-related stocks such as TBO Tek, Thomas Cook (India), India Tourism Development Corporation (ITDC), Travel Food Services, Ixigo, EaseMyTrip, and IRCTC are expected to benefit from the festive season surge in holiday travel and bookings.