Global brokerage firm Jefferies is cautious about the Indian stock market as it projects a nearly 10 per cent rise in the Nifty 50 benchmark by the end of 2025, setting a December-end target of 26,000. The index hit an all-time high of 26,277.35 on September 27 this year.
Jefferies highlighted that at 20.5 times one-year forward PE (price-to-earnings), Nifty’s valuation is nearly 6 per cent above the past five-year average. It expects the domestic market to rise 10 per cent over the next calendar year, in line with earnings growth.
Due to the cautious market outlook, Jefferies prefers large caps over mid-caps.
“Overweight banks remains our highest-conviction idea as growth gradually picks up. Our top picks are ICICI Bank, Axis Bank, SBI, Bharti Airtel, JSW Energy, TVS, Coal India, Godrej Properties and Sun Pharma,” said Jefferies.
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