As the festive and wedding seasons approach, India’s stock market is expected to witness a significant surge, primarily propelled by a rise in consumer spending.
What Happened: A recent report by PL Capital of Prabhudas Lilladher says that the stock market often experiences a boom during the festive seasons of Diwali and Dussehra and the grand Indian weddings. This is attributed to increased consumer expenditure on gifts, home decor, and new purchases. The Indian wedding industry, being the second largest in the world, plays a crucial role in this trend.
The Economist states that the wedding industry ranks fourth in terms of industries in India, with an annual expenditure of $130 billion (around ₹10.88 lakh crore). The industry has seen consistent growth over the past three years, with a shift towards digitalisation and innovation. In 2024 alone, the industry has already witnessed over 42 lakh weddings from January to July, resulting in an estimated spending of $66.4 billion (₹5.55 lakh crore).
India is expected to host 35 lakh weddings between November and mid-December, which is projected to contribute ₹4.25 lakh crore to the economy, the report said.
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| Company | Revenue July-Sept’23 | Revenue Oct-Dec’23 | Revenue Growth (%) |
|---|---|---|---|
| Arvind Fashions | 1,922 | 1,888 | -1.80% |
| Ethos | 235 | 281 | 19.60% |
| Inter Globe Aviation | 14,944 | 19,452 | 30.20% |
| Hero MotoCorp | 9,533 | 9,788 | 2.67% |
| Titan | 12,529 | 14,164 | 13.05% |
| Safari Industries | 370 | 388 | 4.86% |
| Sai Silks (Kalamandir) Limited | 326 | 382 | 17.18% |
| Lemon Tree Hotels | 227 | 289 | 27.31% |
In addition, the recent reduction in gold import duties from 15% to 6% is predicted to stimulate gold purchases across the nation, especially during the festive and wedding seasons. This is expected to trigger a significant increase in demand.
The report also showed how the wedding season spurred consumer spending and powered the revenue of companies in jewellery, clothing, and premium goods and services, such as airlines and hotels in the previous calendar year.
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