Expect double-digit returns in 2-3 years, Nifty target for Dec 2025 at 26,100: Axis Securities
Nifty 50 index has risen over 1% in the last two trading sessions, with brokerage firm Axis Securities projecting the index to hit 26,100 by December 2025, marking an 8% upside from the current levels.
The brokerage said it continues to believe in India’s 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’ bullish outlook is driven by anticipated double-digit returns from Indian equities over next 2-3 years, supported by a robust compound annual growth rate (CAGR) of 14% in earnings between FY23 and FY27 and underpinned by economic stability and strong corporate fundamentals.
The brokerage attributes this growth to a combination of economic momentum, government infrastructure spending, and a favourable political climate. Financial stocks are expected to remain the primary contributors to earnings growth in FY25 and FY26.
In the near term, some allocation is likely to shift towards China based on recent developments. “Nonetheless, we continue to believe in the long-term growth story of the Indian equity market,” said Axis Securities, adding that “bottom-up stock picking with a focus on ‘Growth at a Reasonable Price’ and ‘Quality’ would be keys to generating satisfactory returns in the next one year.”
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