Nifty bull case target at 27K, says Axis Securities; bets on HDFC Bank, Bharti Airtel, others

The December 2023 report from the domestic brokerage firm upgraded the December 2024 Nifty target to 23,000, which was achieved well ahead of schedule. This achievement underscores their confidence in the current macroeconomic cycle and earnings growth.

"We continue to believe that the Indian economy stands at the sweet spot of growth and remains the land of stability against the backdrop of a volatile global economy. We continue to believe in its 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," said Axis Securities in a report.
Against this backdrop, Axis forecasts Nifty earnings to achieve an excellent growth rate of 16% CAGR from FY23 to FY26, with financials expected to be the primary contributors to earnings in FY25 and FY26.

The Indian economy continues to stand out as a 'star performer' among other emerging markets. Furthermore, it is expected to sustain its growth momentum in 2024 and maintain its status as a beacon of stability amidst a volatile global economic backdrop.

Consistently strong corporate earnings have bolstered Indian corporates, placing them on a stronger footing than ever. This positions them well to sustain growth even amid global volatility, likely maintaining premium valuations in the market.

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