As Diwali 2025 approaches and markets optimism builds, a look back at last year’s trends offers fascinating insights. We observed an interesting market pattern: in the pre-Diwali week last year, 296 smallcap stocks registered double-digit gains, signalling strong momentum across the broader market ahead of the festival.
However, out of these 296 stocks, a 207 delivered negative returns over the past year. This suggests that while Diwali euphoria temporarily lifted many names, the rally fizzled out in most cases once the fireworks ended. In contrast, 39 smallcap stocks not only delivered 10%+ returns before Diwali 2024 but continued their rally afterwards — offering sustained gains ranging from 25% to a staggering 200% over the last 12 months. Among these consistent outperformers, nine stocks emerged as true multibaggers, each delivering 100% or more returns since Diwali 2024 — effectively doubling in value. It’s important to note, however, that past performance does not guarantee future results. (Data Source: ACE Equity)