Key Points

According to Smallcase's report, nine sectors, including auto components, FMCG, defence, clean energy and others, are set to benefit from a combination of festive demand, policy reforms, and structural growth drivers.

"Navratri 2025 offers investors a timely opportunity to align portfolios with India's strongest growth stories, backed by robust consumption data, policy tailwinds, and record-high retail participation in capital markets," the report said.

The report highlights that auto demand is set for a festive rebound as GST reforms and auspicious buying windows are likely to lift consumer sentiment.

The August 2025 retail sales grew 2.84 per cent year-on-year (YoY) (two-wheelers 2.18 per cent, passenger vehicles (PVs) 0.93 per cent), with wholesale dispatches at 3.22 lakh PVs and 18.34 lakh two-wheelers.

The elevated PV inventories (56 days) signal strong festive deliveries ahead.

With the festive consumption entering a strong upcycle, supported by headline CPI at 1.69 per cent, a 13.9 per cent FMCG value growth in Q2-CY25 led by rural recovery, and a record 20 billion UPI transactions worth Rs 24.85 lakh crore in August.

This Navratri-Diwali, gold demand in India is poised for a strong surge, underpinned by both cultural tradition and global economic dynamics.

"US federal debt has soared from $5.7 trillion in 2000 to $35.5 trillion in 2024, flipping a $240 billion surplus into a $1.9 trillion deficit, while inflation has hovered at 2.7-2.9 per cent and interest rates remain elevated at 4.5-4.6 per cent," the report highlighted.

Meanwhile, solar power has recorded 31 per cent YoY in 2025, with India targeting 500 GW renewable capacity by 2030.

EV penetration in two-wheelers is expected to reach 25 per cent by FY30, supported by incentives like PM E-DRIVE, the report noted.

According to Smallcase, government-led capex remains strong with a central allocation of Rs 11.21 lakh crore in FY26 (3.1 per cent of GDP) and a Rs 1.5 lakh crore interest-free loan line for states.

GST cuts on cement -- from 28 per cent to 18 per cent) could lower project costs by 3-5 per cent, while CE volumes are forecast to grow 2-5 per cent in FY26 (1.43-1.47 lakh units).

The report noted that defence production touched Rs 1.50 lakh crore in FY25, while exports hit a record Rs 23,622 crore. Additionally, the Ministry of Defence signed 193 procurement contracts worth Rs 2.09 lakh crore, with 92 per cent awarded to domestic firms.

Companies in the capital markets and infrastructure and consumption equipment would also see decent retail participation and growth this navratri, the report stated.

- IANS