January 2022 was a volatile month, marked by a weakness in the global market led by rising concerns over inflation, faster tapering, and the new Covid-19 variant, which forced equity investors to adopt a more cautious stance. The earnings momentum would be the critical factor for the market performance moving forward, believes Axis Securities.
Axis Securities has recommend top stock picks that includes ICICI Bank with target price of ₹990, Bajaj Auto (target price: ₹4,250), Tech Mahindra (TP: ₹2,060), Maruti Suzuki India (TP: ₹9,800), State Bank of India (TP: ₹645), Hindalco Industries (TP: ₹570), Bharti Airtel (TP: ₹810).
Its midcap stock picks include Federal Bank (TP: ₹125), Varun Beverages (TP: ₹1,050), Ashok Leyland (TP: ₹175), Bata India (TP: ₹2,300), Krishna Institute of Medical Sciences (TP: ₹1,600).
Equitas Small Finance Bank (TP: ₹77), Mold-Tek Packaging (TP: ₹920), Amber Enterprises India (TP: ₹3,975), CCL Products (India) (TP: ₹585) are also part of its smallcap top picks.
Meanwhile, the domestic brokerage house has overweight stance on sectors like Information Technology (IT), metals and mining, and specialty chemicals.
“With overall market construct positive, style and sector rotation have been the key factors to achieve satisfactory returns. Value and momentum stood as our top-performing styles in the last one month while the Growth theme continued to lag. Large Caps are likely to catch up in the near term,” the brokerage’s note added.
The long-term story for the equity market remains intact, as the positive structure emerging with increase in Capex spending, that will enable banks to improve credit growth and the overall increase in the budget expenditure in FY23 will help deliver broad- based growth moving forward, it said. Axis Securities has maintained its December 2022 Nifty 50 target of 20,200.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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