Business News/ Markets / Stock Markets/  These 16 stocks are Axis Securities' top picks for this month

Brokerage firm Axis Securities continues to maintain a positive long-term outlook on the market, 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 broad-based growth in FY23, it said.

Based on the themes, the brokerage has recommend the following stocks as its top picks for the month of September which are ICICI Bank with a target price of 1,000, Tech Mahindra (TP: 1,200), Maruti Suzuki India (TP: 10,270), State Bank of India or SBI (TP: 665), Dalmia Bharat (TP: 1,850), Federal Bank (TP: 130).

Its preferred recommendations also include Varun Beverages (TP: 1,150), Ashok Leyland (TP: 175), Astral Ltd (India) (TP: 2,300), Bata India (TP: 2,200), APL Apollo Tubes (TP: 1,100), HealthCare Global Enterprises (TP: 330), Praj Industries (TP: 477), CCL Products (India) (TP: 600), Coal India (TP: 262) and Bajaj Finance (TP: 8,250).

In the last two months, domestic-oriented themes like Banks, Auto, FMCG, Hospitals, Domestic Industrials, and Discretionary outperformed the export + cyclical oriented themes. 

“Given the backdrop of rising concerns over the global slowdown, aggressive tightening, and preference for domestic interests first, the export-oriented themes are likely to be muted or perform conservatively in the near term. However, in the near term, the market is eyeing the robust festival demand which stood muted for the last two years due to intermittent Covid-19 disruptions. Also, some recovery is expected in the cyclical sectors in the second half with a pick-up in government spending," it added.

The Indian market performance showed resilience in the last one month with Nifty 50 recovering by 16% from the bottom (since 17th June 2022). Both Mid and Small Cap indices, too, recovered by 22% and 18% for the same period respectively. The recovery was led by positive FII flows and a robust earning season.

Moreover, a normal monsoon, cool-off in commodity prices, and healthy wage growth (especially in the Services sector) are boosting the market confidence of a robust festival demand around the corner, as per Axis Securities.

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

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Updated: 03 Sep 2022, 02:01 PM IST
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