The Hindu Business Line : The big-bang buying season

Malls are overflowing and negotiating through shopping districts is hell. Traffic is crawling and parking is a nightmare. But no one is complaining, bitten as they are by the Buy Bug, ahead of the most important festival season — Diwali. The festivity in the air has galvanised even the otherwise `don't care' young set, which flits from one done-up store to another clutching a brace of colourful carry-bags.

As much as Diwali is a festival of lights, it is also a celebration of a resurgent India's buying power. What is more, this year, the Goddess of Wealth has been more open handed than ever before, keeping the stock market — a barometer of the economy's health — on an unprecedented high.

For Dalal Street, Diwali celebration, especially Lakshmi puja, or the propitiation of the Goddess of Wealth and prosperity, is of utmost significance. Which is why, it holds a special session on the Diwali evening, called muhurat trading. Family members of stock brokers and their employees join in the trading and, for once, the palpitating tension of the dealing room gives way to light, colour and laughter, as dealers make symbolic trades (only buy orders, of course!).

Pre-Diwali rally

Happily for Dalal Street, the market always rallies before Diwali. A study of the gains made by the Sensex in the month before Diwali from 2001 onwards reveals that it has risen from 0.9 per cent to 9 per cent in this period. The exception is 2005, when it lost 8.3 per cent. But, equally, it is acknowledged that it was the muhurat session of that year that reversed the tide of selling and set off the relentless rally that has seen the Sensex come up from below 8,000 to nudge the 13,000-point mark.

Apart from the pre-Diwali rally, investors have other reasons to be thankful to the festival as it sets off the spending spree that leaves consumer-driven industries sparkling.

Painting, renovations

The spending is not confined to personal goods alone. Even houses get a new-look. Usually, a month before Diwali, houses are cleaned and given a fresh coat of paint; after all they must look their best if they are to attract the Goddess of Wealth. This spurs the sales of paint majors such as Asian Paints, Kansai Nerolac, Berger Paints and ICI.

Other construction-related industries such as plywood, tiles, glass, cement also benefit from the renovations and repairs done around this time.

Apparel

Then, the most important `must do' — Shopping for clothes. For most households, this is a festival in itself. Just any ordinary set of clothes will not do for Diwali. It has to be the best — silks with zaris, chiffons and georgettes that will shimmer in the light of the tiny earthen lamps. And men are as choosy, settling only for the big brands.

Though textile companies are mostly in the unorganised sector, the listed ones catering to the retail sector such as Raymond, Zodiac Clothing and Provogue, do all they can to cover the Diwali shopper.

Jewellery

Clothes must of necessity be complemented by jewellery, which is right at the top of most Diwali shopping lists. India is the largest consumer of gold in the world and Diwali sees the demand for the yellow metal spurt.

Listed companies in the gems and jewellery space such as Titan, Gitanjali Gems and Goldiam International draw the more quality-conscious customers who swear by branded products.

Automobiles

While these traditionally made up the big buys of Diwali, the automobile revolution has opened up another spending avenue.

With Diwali also the time when companies shower their employees with sizeable bonuses, two- and four-wheeler companies floor the accelerator in pursuit of the customer. To juice up the deal, a promotional offer is normally part of the package. Diwali promises a brisk ride to all auto majors.

Gifts

Diwali is also a time for gifting. These are days of sparkling crystal-ware, designer clothes and expensive electronics gadgets.

Retailing companies such as Pantaloon, Trent and Shoppers' Stop have a broad smile on their face as customers come to shop by the droves.

Sweets

Can any Indian festival be complete without food? Diwali would be insipid without those sinfully-rich but mouth-watering laddus, jamuns and pedas.

Again, in these changing times, special range of chocolates and cookies from Nestle and Britannia are beginning to vie for shelf space with the traditional mithais.

It is surely heartening that we get a double bang from Diwali. The spending binge swells the coffers of many of the companies we are invested in. But it would surely not be remiss to divert a fraction of this spending to aid those who are not as privileged.

After all, what really counts at the end of the day is the inner glow that suffuses our lives, long after the lamps have gone out.

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