Broking house Angel One has picked eight stocks across sectors for its annual Diwali list, with ICICI Bank, Engineers India and Apollo Micro Systems among the names. The brokerage said India’s growth story remains intact, though it is now coming with a higher cost of living.
The picks are part of Angel One’s *Shagun Ke Shares* Diwali Picks Report 2026. Besides ICICI Bank, the list has two more financial services names, Northern Arc Capital and Engineers India’s fellow industrials pick Ratnaveer Precision. It also includes Aarti Pharmalabs from healthcare, Shanti Gold from consumer discretionary, real estate developer AGI Infra and defence electronics maker Apollo Micro Systems.
As of September 30, ICICI Bank was the heavyweight of the basket at ₹1,398 a share and a market value of over ₹10 lakh crore. Apollo Micro Systems was at ₹397.15, Ratnaveer Precision at ₹359 and Aarti Pharmalabs at ₹873. Shanti Gold, Northern Arc Capital and Engineers India traded at ₹292.90, ₹251.80 and ₹251.80, while AGI Infra stood at ₹238.70.
The brokerage said it will publish the investment rationale for each stock in a daily series running until November 7.
The picks come against a mixed backdrop. Both the RBI and the OECD have raised their forecasts for India’s growth this fiscal year, citing strong domestic demand. At the same time, inflation has climbed to a near two-year high, and the central bank raised the repo rate in October.
Foreign portfolio investors have pulled out of Indian equities at a faster pace this year than in all of 2025, the report noted. Rising crude, a stronger dollar and high US bond yields have driven the selling, and some of that money has moved to North Asian markets riding the AI rally. Domestic institutions have more than absorbed the outflows, backed by record monthly SIP inflows. According to the report, this has shifted ownership of Indian companies steadily into domestic hands.
The brokerage said consumer spending has held up despite costlier fuel and a weaker rupee. GST collections, passenger vehicle sales and UPI payments are at or near record levels. It flagged air travel as the weak spot, hit by airspace closures and fuel surcharges.
Government capital spending remains the anchor of the investment cycle and is running ahead of budget, led by defence, the report said. Private investment announcements have risen sharply. Bank lending has accelerated across industry, services, agriculture and personal loans, while bad loans have fallen to a multi-decade low. Angel One said growth, domestic participation and investment activity will continue to drive the market. However, it cautioned that global uncertainty and inflation remain key risks.