ITC, HDFC Bank, ICICI Bank, Cholamandalam Investment and Finance, Eicher Motors, TVS Motor among 10 stocks Jefferies is bullish on
Jefferies India Strategy report stated that even amid uncertain macros despite the global risk-off sentiment India has been outperforming. So, what's playing out well for the D-Street.
Low FPI positioning on D-Street
Low FPI positioning is seen to augur well for Indian equities.
Defensive approach on Indian equities
Jefferies has maintained its defensive approach on India and held that the continuing drag in the US dollar will prove to be relatively beneficial for Indian markets. Further, this view has been maintained given the country's second biggest bull run, high retail flow and increase in capital gains tax which have been perceived as 'absolute risk'.
Domestic inflows viewed as unsustainable
The brokerage said that in 2024 every month, Indian equities registered Rs 62,000 crore domestic inflow, up 2 times over the previous high. This is anticipatd as the increase in the capital gains tax and restriction in F&O trade is seen as a big risk.
Nifty to correct further more, broader markets to see deep fall
Nifty has corrected nearly 4 per cent and is expected to correct further 5-9 per cent. Further, in the small and mid-cap space, the correction can be even deep. Despite the correction, the Nifty benchmark is trading at 20.2x 1-yr fwd PE.
Largecap stocks Jefferies is bullish on
Stocks Rating Target
HUL Buy 3130
ITC Buy 585
ICICI Bank Buy 1460
HDFC Bank Buy 1890
Axis Bank Buy 1500
IndusInd Bank Buy 1750
CholaFin Buy 1685
Eicher Motors Buy 6000
TVS Motor Buy 2525
L&T Buy 4165