The Indian stock market traditionally witnesses a significant boost during the festive and wedding seasons and with Indians estimated to spend more than $50 billion during the wedding season between November and mid-December, certain sectors are likely to see a surge.
According to a note by Indian brokerage Prabhudas Lilladher, in 2024, the industry has already witnessed over 42 lakh weddings from 15 January to 15 July, generating an estimated expenditure of $66.4 billion (Rs 5.5 lakh crore), according to a survey by the Confederation of All India Traders (CAIT).
India is projected to host another 35 lakh weddings between November and mid-December alone, up from 32 lakh weddings during the same period in 2023.
This is expected to contribute approximately Rs 4.25 lakh crore ($51.20 billion USD) in economic activity.
The government’s push for the wedding industry
The Indian government aims to strategically boost tourism in India by positioning the country as a premier destination for international weddings.
The campaign will start by profiling around 25 key destinations across India, showcasing how the country meets diverse wedding aspirations.
Inspired by the Make in India campaign, this strategy seeks to attract approximately $12.1 billion (Rs 1 lakh crore) that is currently spent on destination weddings abroad.
The CAIT has dubbed this forward-thinking initiative as a strategic effort to stem the outflow of currency from India.
Key sectors to benefit
According to PL Capita, with the festive and wedding seasons driving up consumer demand, certain sectors of the Indian stock market are likely to see a surge.
Retail stocks, particularly those related to clothing, home decor, and luxury goods, are expected to experience gains as families spend on elaborate ceremonies and gift-giving traditions, the brokerage said.
The jewellery sector is also set for a significant boost due to cultural ties between weddings and gold purchases.
The recent reduction in gold import duties from 15% to 6% is likely to further increase gold demand, with consumers using this opportunity to make large investments.
Source: PL Capital
“The cultural and religious significance of gold, combined with its role as a valuable investment, is expected to drive a substantial uptick in demand,” said Vikram Kasat, head of advisory at PL Capital.
Major jewellery companies like Titan and Kalyan Jewellers are likely to see their stock prices climb due to this heightened activity.
The hospitality industry will also see significant gains as more weddings are held in lavish venues, with an increase in the number of guests following the pandemic.
Hotels, airlines, and travel-related businesses stand to benefit as families spend on destination weddings and event services.
8 stocks to likely to look at
These are some of the stocks that are likely to benefit, according to the brokerage:
Arvind Fashions
Arvind Fashions is a prominent player in India’s apparel industry, offering premium brands like Arrow, US Polo, and Flying Machine.
During the wedding season, the demand for formalwear, ethnic wear, and high-end fashion surges, positioning Arvind Fashions to benefit from increased spending on luxury and occasion-specific clothing.
Ethos
Ethos is India’s largest luxury watch retailer, offering high-end brands like Rolex, Omega, and Cartier.
The Indian wedding season, known for grand celebrations and gift-giving, drives demand for premium watches, making Ethos a beneficiary as customers seek luxury gifts and accessories for special occasions.
InterGlobe Aviation (IndiGo)
As India’s leading airline, InterGlobe Aviation, the parent company of IndiGo, stands to benefit from the rise in travel during the wedding season.
With destination weddings and increased domestic and international travel for ceremonies, IndiGo is set to capitalize on higher demand for flights.
Hero MotoCorp:
Hero MotoCorp, the world’s largest two-wheeler manufacturer, could see a boost during the wedding season as families often purchase new vehicles as gifts or for personal use.
The company’s affordable range of motorcycles and scooters makes it a popular choice for gifting during weddings.
Source: PL Capital
Titan:
Titan, known for its luxury watches and jewelry brands like Tanishq, stands to gain immensely during the wedding season.
Gold and diamond jewellery are integral to Indian weddings, and Titan’s trusted brands are likely to see heightened demand as families make significant jewellery purchases.
Safari Industries:
Safari Industries, a key player in India’s luggage market, will likely benefit from the increased travel associated with weddings.
Whether for destination weddings or honeymoon trips, the demand for luggage and travel accessories tends to rise sharply during this period.
Sai Silks (Kalamandir):
Sai Silks, with its flagship brand Kalamandir, specializes in ethnic and bridal wear, making it well-positioned for the wedding season.
With millions of weddings taking place, the demand for sarees, lehengas, and other traditional attire surges, directly boosting the company’s sales.
Lemon Tree Hotels:
Lemon Tree Hotels, catering to midscale and economy travelers, stands to gain from the spike in bookings during wedding season.
With an increase in both domestic weddings and destination celebrations, the hospitality sector sees strong demand, especially from families and guests seeking affordable accommodation options.
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