Expect double-digit returns in 2-3 years, Nifty target for Dec 2025 at 26,100: Axis Securities

The Nifty 50 index has risen over 1% in the last two trading sessions, with brokerage firm Axis Securities projecting the index to hit 26,100 by December 2025, marking an 8% upside from the current levels.

The brokerage said it continues to believe in India’s long-term growth story, “driven by the country’s favourable structure, thanks to the increasing capex which is enabling banks to improve credit growth. This will ensure that Indian equities will easily manage to deliver double-digit returns in the next 2-3 years, supported by double-digit earnings growth.”

Axis Securities’ bullish outlook is driven by anticipated double-digit returns from Indian equities over next 2-3 years, supported by a robust compound annual growth rate (CAGR) of 14% in earnings between FY23 and FY27 and underpinned by economic stability and strong corporate fundamentals.


The brokerage attributes this growth to a combination of economic momentum, government infrastructure spending, and a favourable political climate. Financial stocks are expected to remain the primary contributors to earnings growth in FY25 and FY26.

In the near term, some allocation is likely to shift towards China based on recent developments. “Nonetheless, we continue to believe in the long-term growth story of the Indian equity market,” said Axis Securities, adding that “bottom-up stock picking with a focus on ‘Growth at a Reasonable Price’ and ‘Quality’ would be keys to generating satisfactory returns in the next one year.”

While the medium- to long-term outlook for the overall market remains positive, some volatility may be witnessed in the short run with the market responding in either direction, said Axis Securities, adding that “Keeping this in view, the current setup is a ‘Buy on Dips’ market. We recommend investors maintain good liquidity (10%) to use any 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.”

Axis Securities' long-term outlook remains positive, reaffirming India's position as a “land of stability” amid global uncertainty.

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ICICI Bank, HCL Technologies, Bharti Airtel among 16 top stock picks

In terms of stock recommendations, the brokerage has updated its "Top Picks" basket, which has historically outperformed the Nifty 50 index. New additions include Gravita India and Healthcare Global, while TVS Motors and Federal Bank have been excluded to align with shifting market dynamics.

Axis Securities' top stock recommendations span multiple sectors:

Financials

• ICICI Bank (Target Price: Rs 1,500; Upside: 15%)
• State Bank of India (Target Price: Rs 1,040; Upside: 24%)
• HDFC Bank (Target Price: Rs 2,025; Upside: 13%)
• Cholamandalam Investment & Finance (Target Price: Rs 1,675; Upside: 36%)

Health Care

• Aurobindo Pharma (Target Price: Rs 1,730; Upside: 37%)
• Lupin Ltd (Target Price: Rs 2,600; Upside: 27%)
• Healthcare Global Enterprises (Target Price: Rs 575; Upside: 14%)

Consumer Staples

• Varun Beverages (Target Price: Rs 700; Upside: 13%)

Communication Services

• Bharti Airtel (Target Price: Rs 1,880; Upside: 16%)

Information technology

• HCL Technologies (Target Price: Rs 2,100; Upside: 14%)

Materials

• Dalmia Bharat (Target Price: Rs 2,040; Upside: 12%)
• Gravita India (Target Price: Rs 3,000; Upside: 38%)

Consumer Discretionary

• Chalet Hotels (Target Price: Rs 1,035; Upside: 16%)
• Sansera Engineering (Target Price: Rs 1,780; Upside: 12%)

Real Estate

• Prestige Estates Projects (Target Price: Rs 2,195; Upside: 33%)

Industrial

• J.Kumar Infraprojects (Target Price: Rs 950; Upside: 26%)

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)