![Nifty target price increased to Rs 25,638; HDFC Bank among 19 conviction picks: InCred Equities](https://img.etimg.com/thumb/msid-111119029,width-210,height-158,imgsize-28532,resizemode-75/nifty-target-price-increased-to-rs-25638-hdfc-bank-among-19-conviction-picks-incred-equities.jpg)
“Factoring in favourable macroeconomic tailwinds led to an upgrade in our blended Nifty-50 target to 25,683 (from 24,084 earlier). The preference for largecaps remains. We have added defensive stocks to our high-conviction ideas list and removed policy-risk stocks in the defence sector,” said a report by InCred Equities.
The March 2024 quarter results were marginally above expectations. FY25F-26F Bloomberg consensus Nifty-50 PAT CAGR of 12% is expected to be driven by telecom, consumer staple, materials, consumer discretionary and capital goods sectors.
With the VIX now back to near-13 level, the domestic brokerage firm states that the strong macroeconomic tailwinds and their FY25F-26F EPS growth outlook of 12% remain intact, which favours utility, consumer and capital goods sectors.
Domestic economic activity continued to remain strong, despite a few challenges from general/assembly elections and the heatwave. The high frequency data on electricity generation and credit growth was impressive while the Goods and Services Tax or GST collections eased from the March 2024 peak level.
“We stay constructive on markets and look for policy action & priorities in the budget slated end-July 2024,” said Pramod Amthe of InCred Equities.
High conviction picks
Following are the high conviction picks with an ‘add’ rating as listed by InCred equities:Aditya Birla Sunlife AMC, Ajanta Pharma, Ashok Leyland, Aurobindo Pharma, BCL Industries, Bharat Forge, CONCOR, Cyient DLM, Dabur India, Globus Spirits, HDFC Bank, Mahindra & Mahindra Finance, Maruti Suzuki, Shriram Finance, Skipper, Spandana Sphoorty Financial, State Bank of India, Tech Mahindra and Zydus Lifesciences.
“We dropped Titan Company and introduced Dabur India in the consumer sector. We removed Bharat Electronics and Data Patterns in the defence sector as they reached our target prices and the policy risk stands undermined. We added Zydus Lifesciences in the pharmaceutical sector, improving the defensive stocks’ weightage in the portfolio. We dropped APL Apollo and Camlin Fine Sciences for management/ execution challenges,” Amthe said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price