Stocks to Buy: ICICI Bank, SBI, ITC, Maruti Suzuki among top large cap picks by Axis Securities; check list here
Indian stock market witnessed a decent rally in the last couple of months, especially in the Midcap and Smallcap space. The benchmark index Nifty 50 and the S&P 500 are up 10% and 14% respectively over the past year. Analysts said the Indian economy stands at a sweet spot of growth and remains the land of stability against the backdrop of a volatile global economy.
Axis Securities believes in the long-term growth story of the Indian equity market, supported by the emerging favourable structure as increasing Capex enables banks to improve credit growth. Strong earnings trajectory continues in the Nifty 50 universe. The brokerage foresees Nifty EPS to post growth of 17% and 13% in FY24 and FY25, respectively.
“Post Q1FY24, we have made marginal upgrades of 0.9%/0.8% to our FY24/25 EPS expectations. Thus, we maintain our Dec’23 Nifty target at 20,200 by valuing it at 20x Dec’24 earnings," Axis Securities said in a report. 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, it said. The brokerage recommends investors maintain good liquidity (10%) to use any dips in a phased manner and build a position in high quality companies (where the earnings visibility is quite high) with an investment horizon of 12-18 months. With this, Axis Securities has included 5 large cap stocks in its top picks for September.
These stocks include ICICI Bank, Maruti Suzuki India, State Bank of India, Varun Beverages and ITC. Let’s take a look at Axis Securities’ top large cap picks: ICICI Bank has been outperforming its peers and has been firing on all cylinders. ICICI
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