Stocks to buy: Bull case Nifty 50 target at 27,000; HDFC, ICICI Bank, Bharti Airtel among 16 top picks: Axis Securities

The growth story of the Indian stock market is expected to continue in the long-term. However, with current valuations offering a limited scope for further expansion, an increase in corporate earnings will be the primary driver of the market returns moving forward, analysts said.

Hence, according to Axis Securities, 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.

In its base case, Axis Securities maintained its Nifty 50 target of 24,600 for March 2025. It foresees Nifty earnings to post growth of 16% CAGR over FY23-26. Financials are expected to remain the biggest contributors for FY25/26 earnings.“While the medium to long-term outlook for the overall market remains positive, we may see volatility in the short run with the market responding in either direction. Keeping this in view, the current setup is a ‘Buy on Dips’ market. Hence, any market correction on account of global challenges will be an opportunity to add to the equity investment,” Axis Securities said.

It recommends investors to remain invested in the market and 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.