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Stocks with the highest target upsides are UPL (+36%), Oil and Natural Gas Corporation or ONGC (+32%), HDFC Life Insurance (+28%), Axis Bank (+25%), and Bharti Airtel (+25%), said Motilal Oswal in a report that pore over the Nifty consensus data sourced from Bloomberg to take note of which stocks are most favored on the street, and the possible target of the Nifty at the market, sector and stock levels.

Meanwhile, as per the report, stocks with the most target downsides are JSW Steel (-18%), Asian Paints (-4%), Eicher Motors (-3%), Coal India (-2%), and Wipro (-1%).

The index, which currently trades above 17,600, is expected to reach near 20,000, as per analysts. Based on the consensus target prices for the Nifty 50 companies, there is a potential upside of 13% for Nifty 50 index to 19,717.

On the other hand, ICICI Bank is covered by 51 analysts on the Street and it enjoys 98% Buy ratings, followed by L&T (98%), ITC (97%), State Bank of India or SBI (96%) and HDFC (96%), said the report.

“Analyst sentiment, which is measured by the proportion of Buy/Hold/Sell ratings, has improved over the past year with the percentage of Buy ratings increasing to 75% from 74% a year ago. Further, the percentages of Hold have remained stable. While Sell ratings declined to 9% from 10%, a year ago," the note stated.

Among the Nifty constituents, Maruti Suzuki and Bajaj Auto are the most widely covered stocks on the Street (54 analysts covering the stocks), while Grasim Industries and Bajaj Finserv are the least covered stocks (10 analysts covering these stocks).

Sentiments on Autos, Cement, and Healthcare have been positive with their coverage improving 8%, 6% and 5% YoY, respectively. NBFCs (due to a drop in coverage of HDFC), Insurance, and Retail have taken a hit, with their coverage slumping 16%, 8% and 6% YoY, respectively.

Private banks, oil & gas, NBFCs, technology, PSU banks, telecom and consumer are likely to contribute the most to the Nifty index’s upside, as per the Motilal Oswal report. 

However, analysts note that oil & gas, autos, consumer, PSU banks and private Banks have outperformed the markets YTD’CY22 with 18%, 18%, 14%, 11% and 8% returns, respectively. The top-10 stocks will likely contribute 72% to the Nifty’s target upside.

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