With the beginning of the March series, domestic brokerage Axis Securities estimates Nifty to reach 23,000 by December 2024, as it sees the Indian economy at a sweet spot of growth.

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Furthermore, it reckons Indian equities to deliver double-digit returns in the next 2–3 years, supported by double-digit earnings growth. With this, it expects Nifty earnings to post excellent growth of 15 per cent CAGR over FY23-26.

"In any case, we continue to believe in the long-term growth story of the Indian equity market," the report read. 

While backing up the claims, the brokerage gave the following reasons:

>>Increasing capex enabling banks to improve credit growth.

>>Increase in corporate earnings will be the primary driver of market returns moving forward. 

>>Bottom-up stock picking with a focus on ‘growth at a reasonable price’ and quality stories would be key to generating satisfactory returns in the next one year.

Giving a broader perspective for Nifty, in the bull case, Axis Securities valued Nifty at 22X, which translates into a December 24 target of 25,000, and in the bear case, it valued Nifty at 16X, which translates into a December 24 target of 18,500.

From a sectoral point of view, the brokerage has taken an 'overweight' stance on the banking and financials, telecom, and auto sectors.

For Information Technology (IT), Metals & Mining, oil & gas, pharmaceuticals, realty, speciality chemicals, capital goods, cement, consumer staples, and consumer discretionary, the brokerage has given an 'equalweight' rating. 

The brokerages chose eight stocks from large-cap, three mid-cap, and four small-cap stocks as their top picks. 

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