Domestic brokerage Axis Securities has maintained a positive long-term outlook on the market, supported by an emerging favorable framework as capex spending rises, which is enabling banks to improve credit growth.
While the brokerage believes that while aggressive policy tightening will help in easing inflationary pressures, continued rise in oil and commodity prices will continue to pose challenges to the market in the next few quarters.
Axis Securities has recommended the following shares for the month of June 2022: ICICI Bank (Target Price: 1,000), Bajaj Auto (TP: 4,350), Tech Mahindra (TP: 1,700), Maruti Suzuki India (TP: 9,800), State Bank of India or SBI (TP: 665), Bharti Airtel (TP: 900), Cipla (TP: 1,125), Federal Bank (TP: 115, Varun Beverages (TP: 1,200), Ashok Leyland (TP: 160), Astral Limited (TP: 1,900).
its top stock picks Bata India (TP: 2,200), APL Apollo Tubes (TP: 1,100), Healthcare Global Enterprises (TP: 330), Praj Industries (TP: 477), CCL Products India (TP: 560).
The brokerage has increased its Nifty target from March 2023 to 18,400, which is valued at 22x FY24 earnings versus 20x earlier. It has cut the Nifty multiple to accommodate the rising interest rate scenario, which began in early May 2022 following a 40 basis points (bps) rate hike by the Reserve Bank of India (RBI).
“Currently India Volatility Index or VIX is trading around LTA levels and a clear trend is likely to emerge only if volatility remains at lower levels for a prolonged period of time. Considering these developments and overall weak global cues, we expect market performance to be limited in the near term.”
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.