Nifty 50 expected to rise 14% to reach 25,810 level by December, says Prabhudas; picks 7 large cap stocks to buy

Capital goods, infrastructure, existent estate, EMS, logistics/ports, hospitals, tourism, auto, caller energy, e-commerce, and telecom are considered by the brokerage to beryllium almighty themes to explore. 

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Also Read: Nifty 50 rises astir 1%; wherefore did the Indian banal marketplace summation today?-explained

Seven large-cap counters person been chosen by Prabhudas Lilladher arsenic their apical picks: Siemens, Reliance Industries (RIL), Max Healthcare Institute, HDFC Bank, ICICI Bank, and Larsen & Toubro (L&T).

According to the brokerage, it reduced its overweight connected banks from 220bps to 80bps. It predicts that banks volition grow dilatory successful FY25, that NIM and plus prime are unaffected by these levels, and that a gradual diminution successful HDFC Bank's LDR mightiness connection important upside implicit the pursuing 12 to 15 months. The brokerage is somewhat adjusting the weights of SBI and ICICI Bank, but stay overweight connected some names.

The brokerage said that due to the fact that of improved prospects for O&G superior expenditure, electricity, infrastructure, and little nonaccomplishment successful the Hyderabad Metro project, it is expanding its allocation to L&T by 40 ground points. Prabhudas Lilladher has boosted their overweight presumption successful superior goods to 610 ground points, driven by robust maturation prospects implicit the adjacent 3-5 years. 

In addition, Prabhudas Lilladher is shifting to overweight position on RIL aft having mostly maintained an underweight stance for lipid & state sector. It believes that the company's adjacent signifier of improvement volition beryllium driven by its sustained maturation successful retail and imaginable forays into caller energy-related industries. It besides anticipates imaginable demergers, similar the 1 with Jio Finance, which whitethorn alteration shareholder worth from earlier endeavors.

Also Read: 9 Nifty Metal stocks including Vedanta, NALCO, SAIL gained 20%-50% successful 2024; cheque afloat list

Nifty 50 Outlook

In a webinar today, Amnish Aggarwal, Head of Institutional Research astatine Prabhudas Lilladher, explained that the Nifty 50 precocious deed an all-time high, but that it past underwent a correction of astir 4% owed to rising geopolitical tensions, changes successful the terms of crude lipid and different commodities, and divergent views connected the US Federal Reserve's expected involvement complaint changes. At the aforesaid time, India is successful the midst of the General Elections, which are a important lawsuit this decade. The markets are not prepared for a recurrence of the 2004 predetermination outcome, successful which the BSE Sensex fell 15.5% connected May 17, 2004, the time the predetermination results were declared, contempt sentiment polls predicting an casual triumph for the NDA.

As to the brokerage, the opening of June marks a pivotal infinitesimal since it volition awesome the extremity of governmental volatility and monsoon play uncertainties, perchance starring to a notable surge successful overseas organization capitalist (FII) inflows.

“We summation our basal lawsuit Nifty 50 people to 25,810 (25,363 earlier). We counsel buying during marketplace dips successful tally upto June 4," the brokerage advised. 

Also Read: Top Gainers and Losers contiguous connected 25 April, 2024: Axis Bank, State Bank Of India, Kotak Mahindra Bank, LTI Mindtree among astir progressive stocks; Check afloat database here

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 25 Apr 2024, 05:37 PM IST