Money making ideas: 16 stocks to buy this month - Axis Securities recommends top picks

Domestic brokerage Axis Securities continues to believe in the long-term growth story of the Indian equity market, supported by the emerging favourable structure as increasing Capex enables banks to improve credit growth. Strong earnings trajectory continues in the Nifty 50 universe.

"We foresee NIFTY EPS to post growth of 10%/16%/13% in FY23/24/25. Thus, we maintain our Dec’23 Nifty target at 20,400 by valuing it at 20x on December 2024 earnings, implying an upside of 18% from the current levels. The current level of India VIX is below its long-term average, indicating the market currently being in a neutral zone (neither panic nor exuberance)," the note stated.

While the medium to long-term outlook for the overall market remains positive, the brokerage house said volatility could be seen in the short run with the market responding in either direction.

“Keeping this in view, the current setup is a ‘Buy on Dips’ market. We recommend investors to maintain good liquidity (10%) to use such dips in a phased manner and build a position in high-quality companies (where the earnings visibility is quite high) with an investment horizon of 12-18 months,” it added.

Sharing as its top picks for the month of March 2023, Axis Securities has recommend the following stocks to buy - ICICI Bank (target price: ₹1,150), Tech Mahindra (TP: ₹1,300), Maruti Suzuki India (TP: ₹9,760), State Bank of India or SBI (TP: ₹750), Dalmia Bharat (TP: ₹2,120), Federal Bank (TP: ₹170).

Varun Beverages (TP: ₹1,500), Ashok Leyland (TP: ₹175), Infosys (TP: ₹1,800), PNC infra (TP: ₹390), ITC (TP: ₹377), HealthCare Global Enterprises (TP: ₹330), Praj Industries (TP: ₹550), CCL Products (India) (TP: ₹650), Polycab India (TP: ₹3,390), and Bajaj Finance (TP: ₹7,400) are also part of its key recommendations.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.