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The Indian stock market remains shut on October 22 for Diwali Balipratipada and reopens on Thursday, October 23.
Samvat 2082 starts on an optimistic note, with analysts expecting a rally driven by profit, supported by better earnings growth.
Smallcaps outperform, with some of them giving more than 100% returns in FY26, even as retail investors take profits.
The Indian stock market will remain closed today for Diwali Balipratipada, a celebration of good fortune and rebirth. This follows immediately after the ceremonial Muhurat session on October 21, which signaled the start of Samvat 2082, the new fiscal Hindu calendar year.
The Bombay Stock Exchange will be back to normal on Thursday, October 23, when traders come back to gauge new corporate results and overseas market signals.
On October 21, 2025, a one-hour Muhurat trading session, a tradition that dates back centuries on Diwali, witnessed a promising beginning with the Sensex opening more than 270 points higher and the Nifty touching a high of 25,900. Buying interest was reflected in names like HDFC Bank, Infosys, and Mahindra & Mahindra. Profit booking at the fag end of the session, however, lopped off the early gains, leaving both the indices barely higher.
Though the close was muted, the investor mood was optimistic. The symbolic session between 1:45 pm and 2:45 pm saw robust activity in financials, autos, and energy segments. Market players took it as a positive augury for the Samvat 2082 year, which most experts predict could spell a profit-driven revival for equities.
Diwali Balipratipada, also referred to as Govardhan Puja or Padwa, is observed a day after Diwali. It commemorates the mythological King Bali, whose humility and piety won him a unique boon from Lord Vishnu. The festival celebrates renewal, good administration, and prosperity, ideals that appeal strongly to traders and investors.
Consequently, both NSE and BSE will be closed on October 22, with trade resuming on Thursday. On the day of reopening, attention will turn to the ongoing Q2 earnings season, particularly from the financials, energy, and IT sectors, which are likely to determine near-term market direction.
Also Read: Samvat 2082: Diwali Muhurat Trading Recap, Key Levels, Sector Moves, and Expert Forecasts
The new Samvat year's prospects are bright, according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "After a consolidation year, corporate earnings are likely to pick up. If profits grow by 8-10% in FY26 and pick up pace to about 15% in FY27, markets may witness a spectacular rally," he observed.
Reflecting this optimism, Amisha Vora, Managing Director and Chairperson of PL Capital, stated that the earnings downgrade cycle appears to be over. India was behind its global peers last year despite excellent domestic fundamentals. But with GDP growth at around 6.8% and liquidity improving, the template for an earnings-driven revival is positive," she said.
Though big-cap shares continue to be the market's backbone, the small-cap segment has been the actual performer in the current year. It is interesting that even as small caps rose to the occasion, retail investors decreased their stakes in close to 278 small-cap firms in the September quarter. According to data, almost 225 of these stocks have reported positive returns until now in FY26, with 58 stocks rising by more than 50%.
Here are some of the names that stood out to become multibaggers in FY26:
Khaitan Chemicals & Fertilizers: The stock gained 173%, which moved from Rs. 46 to Rs. 127, even as retail holdings declined from 18.81% to 15.94%.
Apollo Micro Systems: Gained 143%, which shifted from Rs. 123 to Rs. 298, with retail shareholding decreasing slightly to 29.64%.
Gabriel India: Jumped 122%, rising from Rs. 579 to Rs. 1,285, while retail stakes relaxed to 15.47%.
Gujarat Mineral Development Corporation (GMDC): Advanced 120%, from Rs. 265 to Rs. 585, with retail ownership falling to 15.07%.
Tourism Finance Corporation of India (TFCI): Up 116%, from Rs. 34 to Rs. 73, although retail holdings fell to 18.63%.
Lumax Industries: Doubled 108%, from Rs. 2,524 to Rs. 5,262, with a marginal fall in retail interest to 12.8%.
Parag Milk Foods: Rose 103%, up from Rs. 150 to Rs. 303, with retail holdings dropping to 16.92%.
Experts think the decline in retail participation could be a result of profit booking following a strong rally. The long-term future for quality smallcaps is still optimistic, supported by consistent earnings and business growth.
When business starts again on October 23, investors can look forward to normal volumes as eyes turn towards Q2 numbers and global cues. With corporate earnings likely to bounce back and small-cap momentum remaining intact, the Indian market today is poised on the verge of a new growth cycle in Samvat 2082.
Though global headwinds such as US-China trade tensions and oil price volatility still linger, India heads into the new year with solid macro fundamentals, fiscal discipline, and renewed investor confidence, and it's a good time for long-term investors to remain invested and observe the revival ride.
1. Why are Indian stock markets closed today?
Indian markets remain shut on Wednesday, October 22, to celebrate Diwali Balipratipada — a celebration that represents prosperity and rejuvenation. The trading will start again on Thursday, October 23, as normal market sessions resume.
2. What occurred during the Muhurat trading session?
The Tuesday Muhurat trading session saw the start of Samvat 2082. The Sensex started 270 points higher, and the Nifty touched a record high of 25,900, led by blue-chip buying before modest profit booking cut early gains.
3. What are the prospects of the Indian stock market in Samvat 2082?
Experts foresee a profit-driven comeback in Samvat 2082 with corporate profits picking up. If profits rise 8-10% in FY26 and 15% in FY27, markets might see a strong upsurge on the back of improved valuations and liquidity.
4. Why are small-cap stocks doing well despite retail offloading?
Small-cap stocks have surged in FY26 due to strong earnings, sectoral tailwinds, and investor confidence. Retail investors may be booking profits after large gains, but analysts see long-term potential in quality smallcaps.
5. Which sectors should investors focus on after Diwali?
After the Diwali break, investors should watch financials, energy, and IT sectors, which are set to report Q2 results soon. These sectors are expected to influence near-term market direction and investor sentiment in Samvat 2082.
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