Large-caps likely to deliver better risk-adjusted returns

risk-adjusted returns than mid- and small-cap indices in 2025, driven by higher earnings growth and relatively attractive valuations, according to HDFC Securities.

The brokerage remained overweight on large banks, top-tier IT, consumer durables, capital goods, real estate, cement, and building materials sectors while maintained an underweight stance on auto, consumer staples, oil & gas, mid-cap IT, small banks, and NBFCs.

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The top 10 stocks recommended by HDFC Securities for 2025 include Hindustan Unilever, RIL, SBI, Bajaj Finance, Sun Pharma, Maruti Suzuki, Mahanagar Gas, Sobha, Crompton Greaves Consumer, and Indiamart Intermesh.

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HDFC Securities highlighted that the Nifty 50 index is trading at 23 times FY25 earnings and 20.5 times FY26 consensus earnings, suggesting modest upside potential over the next 12 months. The brokerage recommends a portfolio allocation of 60% to large-caps, with 20% each in mid-cap and small-cap stocks.

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