Home / Markets / Stock Markets /  Nifty December target upgraded to 17,400: Axis Securities. Here are its top stock picks

As Covid-19 cases continue to decline in the country and the vaccination drive has taken off, Axis Securities in a recent note upgraded its December Nifty target to 17,400 and said it remains constructive on the market. The brokerage added a recently initiated coverage stock Orient Cement to the list of its top picks while booking profits in ACC which has delivered healthy double-digit returns. Axis also booked profit in PI industries and has added Ashok Leyland as a ‘recovery play’ in the CV cycle.

''In our Covid 2.0 note, we had cut our Nifty earnings by 6% and subsequently our Nifty target by 6%. However, post Q4FY21 results and significant upgrades across the sectors, our estimates have also seen upgrades by 8%. This is primarily driven by upgrades in the Metals & Mining sector which has seen robust results and high metal prices. Consequently, our Dec’21 NIFTY target has also been upgraded to 17400,’’ the domestic brokerage said in a note.

Axis Securities said that sectors such as IT, Telecom, Pharmaceuticals, FMCG, and Commodities as well as the rural segment have not been much impacted by the lockdowns. However, the impact of new lockdown measures on the BFSI sector will be critical and management commentary after the Q1FY22 results will be most crucial. It expects Q1FY22 earnings are very likely to be a mixed bag.

Based on the themes, it has recommended the following stocks for the month of July: Under the financial sector, SBI, ICICI Bank, Federal Bank and Equitas Small Finance Bank are its top picks whereas Tech Mahindra and HCL Technologies are its top recommendations under the information technology (IT) sector. Other stocks include Varun Beverages, Camlin Fine Sciences, Mold-Tek Packaging, Amber Enterprises India. Minda Corporation, Steel Strips Wheels, Lupin, Bharti Airtel, Orient Cement, and Ashok Leyland.

The brokerage is overweight on sectors like IT, metals and mining, specialty chemicals and telecom.

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