In our Diwali picks, we have selected durable businesses run by capable managers, that are aligned with India's long term trends. These stocks should stand you in good stead as volatility in macros (and sentiment) increases on the way forward. The Karma cycle has hit Indian equity markets, yet again. The new Samvat is set to begin with Nifty at ~11% off recent peaks. Debt markets have been in a daze post the IL&FS; default. FPIs have net sold over Rs 560bn of Indian equities in YTD FY19, worse than they did in FY08. Inflation and fiscal risks loom large with crude persistently above $75 and the INR having slipped ~15%. A sub-par uneven monsoon, upcoming political turmoil and the sticky NPA problem have added fuel to the fire of pessimism.