Domestic brokerage house Axis Securities continues to maintain a positive long-term outlook on the market. This is supported by a favourable structure emerging with increasing Capex enabling banks to improve credit growth.
Moreover, the overall expenditure boost in the Union Budget 2022-23 will help deliver a broad-based growth in FY23, it believes while has maintained its Nifty March 2023 target to 18,400.
“We believe, though aggressive policy tightening will help in curbing inflationary pressure, persistently elevated Oil and commodity prices would continue to pose challenges to the market multiple in the next few quarters. The current India VIX is trading below LTA levels and the clear trend is likely to emerge only after the volatility stays at the lower levels for a longer time. Keeping these developments and overall weaker global cues in perspective, we expect the market performance to remain range-bound in the near term,” the note stated.
Based on the above themes, Axis Securities has recommended the following as its top stock picks for the month of August 2022 which include ICICI Bank (target price of ₹1,000), Tech Mahindra (TP: ₹1,200), Maruti Suzuki India (TP: ₹9,900), State Bank of India or SBI (TP: ₹665), Cipla (TP: ₹1,125), Federal Bank (TP: ₹125), Varun Beverages (TP: ₹1,050).
Ashok Leyland (TP: ₹164), Astral Ltd (India) (TP: ₹2,000), 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), Coal India (TP: ₹235) and Bajaj finance (TP: ₹8,250) are also part of its key recommendations.
The brokerage has made certain changes to its top Picks which now includes booking profit in Bharti Airtel and Bajaj Auto while adding Coal India and Bajaj Finance to the basket.
“We believe that profitability will shift from commodity producers to commodity consumers going forward. Keeping this in view, Banks, Automobiles, Discretionary Consumption and Industrial themes look attractive for the near term over Export and Commodity sector themes,” it added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
