Home / Markets / Stock Markets /  Stocks to buy this month: Axis Securities recommends 17 top picks

Maintaining its December 2023 Nifty target at 20,400 by valuing it at 20x on December 2024 earnings, Axis Securities said that 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).

“While the medium to long-term outlook for the overall market remains positive, we may see volatility in the short run with the market responding in either direction. Keeping this in view, the current setup is a ‘Buy on Dips’ market," the note stated. It believes the worst of the FIIs outflow is now behind us as the strong earnings growth and economic recovery will play out in 2023 and for the next 6-9 months, the market may continue to be influenced by the evolving macroeconomic data points.

The brokerage house has recommended investors maintain good liquidity (10%) to use such dips in a phased manner to build a position in high-quality companies (where the earnings visibility is quite high) and with an investment horizon of 12-18 months.

Based on the above themes, Axis Securities has suggested the following stocks as its top picks: ICICI Bank (TP: 1,150), Tech Mahindra (TP: 1,200), Maruti Suzuki India (TP: 9,760), State Bank of India or SBI (TP: 740), Dalmia Bharat (TP: 2,070).

Other key recommendations include Federal Bank (TP: 170), Varun Beverages (TP: 1,450), Ashok Leyland (TP: 175), Infosys (TP: 1,800), PNC infra (TP: 370), APL Apollo Tubes (TP: 1,345), HealthCare Global Enterprises (TP: 330), Praj Industries (TP: 550), CCL Products (India) (TP: 600), Polycab India (TP: 3,300), and Bajaj finance (TP: 7,400).

“Currently, the market is priced in for future rate hikes but the terminal rates are yet unknown. Any shape deviation in the terminal rate from current expectations may translate into a slowdown or heightened recession risk in the developed market. This, in turn, would have an impact on the export-oriented growth in the domestic market and would pose challenges to the earnings and market multiple," the brokerage added.

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

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