On Tuesday, the Indian stock markets, Sensex and Nifty 50, traded lower after reaching new record highs in the previous session. Despite this, analysts believe in the long-term growth of the Indian stock market and recommend a strategy focused on “growth at a reasonable price” and “quality” stocks to achieve good returns over the next year.
Axis Securities has a positive outlook on the Indian economy, seeing it as a stable place for growth amid global economic uncertainties. They believe that increasing capital expenditure (Capex) is helping banks improve their credit growth, which will support Indian stocks in delivering strong returns over the next 2-3 years, driven by double-digit earnings growth.
Axis Securities expects the earnings of Nifty 50 companies to grow at a compound annual growth rate (CAGR) of 16% from FY23 to FY26, with financial stocks being the biggest contributors to this growth.
The brokerage has set a target for Nifty 50 at 24,600 by March 2025, valuing it at 20 times the expected earnings for March 2026. They also note that while the medium to long-term outlook for the market is positive, there could be short-term volatility. This could provide a good opportunity for investors to “buy on dips,” especially if there are corrections due to global issues.
In a more optimistic scenario, Axis Securities values Nifty at 22 times earnings, which would mean a March 2025 target of 27,000. In a less favorable scenario, they have a target of 19,700 for March 2025.
For September, Axis Securities has recommended nine largecap stocks that could provide returns between 10% and 26%. Here are their top picks:
Top Largecap Stocks to Buy:
- ICICI Bank : Target Price: ₹1,425
- Nestle India : Target Price : Target Price: ₹1,030
- Varun Beverages : Target Price: ₹1,800
- HDFC Bank : Target Price: ₹1,950
- Bharti Airtel : Target Price: ₹1,750
- TVS Motor Company : Target Price: ₹3,100
- Cholamandalam Investment & Finance Company : Target Price: ₹1,710
- HCL Technologies : Target Price: ₹1,930
These stock picks are aimed at helping investors take advantage of potential gains in the current market scenario.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
