Nifty 50 target raised to 25,683; HDFC Bank, SBI, Dabur among 19 high-conviction stock picks by InCred Equities

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Also Read: MOSL advises multi-asset investments after election results: Here's what it recommends for equity, gold, fixed income“Factoring in favourable macroeconomic tailwinds, leading to an upgrade in our blended Nifty-50 target to 25,683 (from 24,084 earlier). The preference for large-caps remains.

We have added defensive stocks to our high-conviction ideas list and removed policy-risk stocks in the defence sector," InCred Equities said.Nifty 50 index valuation has been around the 10-year mean level of 20x one year forward P/E for the last six months. The brokerage firm prefers to look at a 10-year basis, as India emerges to drive global GDP growth with proactive policies.

The major index earnings have been broadly maintained post 4QFY24 results, with mid-teen earnings growth. Major inflow of funds continues to favour mid- and small-cap stocks’ performance, it noted.Also Read: India beats China (in stock performance)In the quarter ended March 2024, Nifty 50 companies’ posted an impressive 19% YoY growth in net profit, driven by an improved 10% sales growth.

Q4 results were marginally above expectations. FY25F-26F Bloomberg consensus Nifty 50 PAT CAGR of 12% is expected to be driven by telecom, consumer staple, materials, consumer discretionary and capital goods sectors.“Strong macroeconomic tailwinds and FY25F-26F EPS growth outlook of 12% remain intact, favouring utility, consumer and capital goods sectors.