Nifty to hit 26,500 in next 18 months, predicts Emkay Investment Managers
The domestic brokerage expects Nifty earnings growth of 15%. It has suggested investors adopting a multi-cap approach, with equal proposition in largecaps and midcaps, to take advantage of a broad-based growth in Indian equity markets. Here are 5 themes to watch out for as suggested by Emaky.
With an expected of 15%, domestic brokerage firm expects to reach 24,500 by December 2024 and eventually surpass the level of 26,500 by December 2025.“In the immediate near term, markets are going to focus on . An expected return of the regime with a base case scenario of 330 seats will result in policy continuity along with major reforms on land, labour, and judiciary will support positive sentiment in the . Over the long term, geopolitical developments and elections in the US and the UK will be watched out for with rate cuts in the 3rd or 4th quarter of FY25,” Emkay said.
The brokerage has advised investors having a with equal proposition in largecaps and midcaps to take advantage of a broad-based growth in Indian equity markets as most of the delta in the medium term is expected to come from the broader markets.
Also read |
“BFSI, , and industrials are expected to do well. has led the earnings growth and seen a correction in valuation. Investment-related themes will come into play with power capex building up in the next 3 to 5 years. We are re-rating public sector units as some of the government entities will have an advantage in sectors such as defence, oil marketing companies and power financers,” said , Chief Officer, Emkay Investment Managers.
After being in a slump post-COVID, are also expected to see a turnaround. “We are witnessing K-shaped recovery in the premier end of consumer discretionary, with the entry-level segment still not doing well,” he said.
Emkay has suggested 5 themes to watch out for:
1) Consumption: Per capita income moving up to $4,500 by 2029 will translate into higher consumption of discretionary items.
2) Manufacturing: China+1 and Europe +1 likely to benefit speciality chemicals, pharmaceuticals, automobiles and electronic services.
3) : Solar and wind are expected to be the mainstream of energy transition in India. Value chain on the power side is expected to benefit in a big way.
4) Digitization & AI: India will be at the forefront of innovation in technology
5) Financialization of savings: Moving away from investments in fixed income to equity will benefit investment platform providers.
Source: Stocks-Markets-Economic Times
