Indian stock market indices, Sensex and Nifty 50, took a breather and traded lower on Tuesday after hitting fresh record highs in the previous session. Analysts continue to believe in the long-term growth story of the Indian equity market and suggest bottom-up stock picking with a focus on ‘growth at a reasonable price’ and ‘Quality’ to generate satisfactory returns in the next one year.
“We continue to believe that the Indian economy stands at the sweet spot of growth and remains the land of stability against the backdrop of a volatile global economy. We continue to believe in its long-term growth story, driven by the country’s favourable structure, thanks to the increasing Capex which is enabling banks to improve credit growth. This will ensure that Indian equities will easily manage to deliver double-digit returns in the next 2-3 years, supported by double-digit earnings growth,” Axis Securities said.
Against this backdrop, it foresees Nifty 50 earnings to post growth of 16% CAGR over FY23-26 and expects financials to remain the biggest contributors for FY25/26 earnings.
In its base case, the brokerage firm maintained its March 2025 Nifty target at 24,600 by valuing it at 20x on March 2026 earnings.
“While the medium to long-term outlook for the overall market remains positive, we may see volatility in the short run with the market responding in either direction. Keeping this in view, the current setup is a ‘Buy on Dips’ market. Hence, any market correction on account of global challenges will be an opportunity to add to the equity investment,” Axis Securities said.
In the bull case, it values Nifty at 22x, which translates into a March 2025 target of 27,000. In the bear case, it has a Nifty 50 target of 19,700 for March 2025.
For the month of September, Axis Securities has recommended 9 largecap stocks to buy. These 9 largecap stock picks by the brokerage house are estimated to deliver returns upto 10% - 26%.
Here are the top largecap stocks to buy:
ICICI Bank | Target Price: ₹1,425
Nestle India | Target Price: ₹2,800
State Bank of India | 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
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
