Brokerage firm Axis Securities continues to maintain a positive long-term outlook on the market, backed by a favorable structure to improve credit growth to banks raising capex. In addition, the boost to overall expenditure in the Union Budget 2022-23 will help deliver broad-based growth in FY23, it said.
Based on the themes, the brokerage recommends the following stocks: lifts up Which is the ICICI Bank target price for the month of September 1,000, Tech Mahindra (TP: 1,200), Maruti Suzuki India (TP: 10,270), State Bank of India or SBI (TP: 665), Dalmia Bharat (TP: 1,850), Federal Bank (TP: 130).
Among its favorite recommendations is Varun Beverages (TP: 1,150), Ashok Leyland (TP: 175), Astral Limited (India) (TP: 2,300), Bata India (TP: 2,200), APL Apollo Tubes (TP: 1,100), Healthcare Global Enterprises (TP: 330), Praj Industries (TP: 477), CCL Products (India) (TP: 600), Coal India (TP: 262) and Bajaj Finance (TP: 8,250).
In the last two months, domestic-oriented disciplines such as Banks, Auto, FMCG, Hospitals, Domestic Industry, and Discretionary outperformed exports + cyclical oriented subjects.
“Given the backdrop of growing concerns over a global slowdown, aggressive tightening and prioritization of domestic interests, export-oriented themes are likely to perform muted or conservatively in the short term. However, in the near term, the market is eyeing strong festive demand, which has remained muted for the past two years due to intermittent Covid-19 disruptions. Also, some recovery in cyclical sectors is expected in the second half with a pick-up in government spending.
The performance of the Indian market showed resilience in the last one month with the Nifty 50 recovering 16% from the bottom (from 17 June 2022). Both the mid and small cap indices also gained 22% and 18% respectively for the same period. The recovery was led by positive FII inflows and a strong earnings season.
Besides, a normal monsoon, cool-off in commodity prices, and healthy wage growth (especially in the services sector) is boosting the market confidence of a strong festive demand, according to Axis Securities.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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