‘I try to buy multi-baggers’

Mumbai-based Virendra Verma, an investor relations professional, is among those retail investors who believe in the sanctity of Muhurat trading.

Verma, 44 years old, is a veteran investor and has been active in the stock market for nearly 25 years now — since 1992 when the Harshad Mehta-led market boom and bust played out. He has been buying stocks on Muhurat trading day since 2004. In keeping with its growth symbolism, Verma only buys during Muhurat trading and does not sell. He also does not actively trade during the session.

He says, “I buy delivery stocks that can turn out to be multi-baggers. My buying is generally based on research. I go for offbeat companies which are out of favour and new emerging businesses, especially in technology. There is limited downside and potential of huge upside in such stocks.”

Many of Verma’s Muhurat bets have given him much reason to smile. For instance, his investment in Venus Remedies in 2004, in 8K Miles in 2013 and in SpiceJet in 2014 gained manifold. Verma says, “In all these stocks, the returns were in excess of 5 times within two years of investment. In 8K Miles, the returns exceeded 20 times in two-and-a-half years.”

Verma, however, feels that the relevance of Muhurat trading has faded over the years. He says, “Most of the institutions do not do transactions on Diwali. Moreover, most of the broking houses are now corporatised; so the charm and excitement is not there.”

Reminiscing about earlier days, he adds, “Earlier, most brokers used to give out bonuses to their employees during this time. But today bonuses are doled out mostly at the end of the calendar year or financial year, based on the company’s performance. So the concept of ‘Diwali ka Sauda’ or ‘Muhurat Sauda’ is not much.” But, then, some pockets are still holding out. Verma says, “For small brokers, it is still the same charm and excitement.”