Brokerage house Axis Securities continues to hold a positive long-term outlook on the market, which is supported by the emerging favourable structure as increasing Capex spending is enabling banks to improve credit growth.
The brokerage believes the market will likely follow the double-digit earnings growth in upcoming years and has maintained its December 2022 Nifty 50 target of 20,200.
Based on the themes, Axis Securities’ top stock picks for the month of April 2022 include ICICI Bank with a target price of ₹990, Bajaj Auto (TP: ₹4,250), Tech Mahindra (TP: ₹2,060), Maruti Suzuki India (TP: ₹9,800), State Bank of India (TP: ₹720), Hindalco Industries (TP: ₹660), Bharti Airtel (TP: ₹870).
Federal Bank (TP: ₹125), Varun Beverages (TP: ₹1,110), Ashok Leyland (TP: ₹160), National Aluminium Company (TP: ₹150), Bata India (TP: ₹2,200), Krishna Institute of Medical Sciences (TP: ₹1,600), Equitas Small Finance Bank (TP: ₹80), Praj Industries (TP: ₹477), CCL Products (TP: ₹565) are also part of its top recommendations.
Over the last one month, all sectors were in the green, except the Auto sector. NSE Media, Metal, IT, Energy, and Commodity index have delivered a solid return, though consumer-facing B2B businesses have underperformed due to the inflationary pressure on input costs.
“In the near term, the market performance is likely to be range- bound, as a clear trend is likely to emerge only after and only if volatility sustains at the current levels for a longer-term. Hence, at this juncture, Q4FY22 earnings commentaries remain critical and that will drive the market fundamentals moving forward,” the brokerage note stated. Commodities, BFSI and IT sectors are likely to post robust earnings in Q4FY22, as per Axis Securities.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
the App to get 14 days of unlimited access to Mint Premium absolutely free!