Axis Securities Highlights 15 Stocks for June with Potential Upside of 44% in Latest Analysis for Minda Corp.
Axis Securities has underscored a positive outlook on Indian equities, recommending a diverse list of 15 stock picks for the month of June, with potential upside ranging from 35% to 44%. This comes despite the backdrop of heightened geopolitical risks and soaring crude oil prices, which have impeded overall market sentiment. The brokerage emphasizes that fundamental macroeconomic conditions in India remain robust, characterized by strong domestic demand and continued government capital expenditure, even as uncertainties from external factors—including geopolitical tensions and foreign investor outflows—persist. The Nifty target for December 2026 has been maintained at 27,220, suggesting that investors should selectively leverage market corrections to accumulate quality stocks with strong earnings visibility.
In its refreshed stock selection, Axis Securities has strategically adjusted its portfolio. The large-cap segment features recommendations like Eternal, Bharti Airtel, and ICICI Bank, each displaying significant upside potential. In the mid-cap segment, Dalmia Bharat offers nearly 39% upside, while the small-cap arena highlights Ujjivan Small Finance Bank, anticipated to yield 43% returns. The brokerage remains focused on sectors with resilient earnings visibility, notably banking and financial services, telecom, and capital goods. The current market environment is viewed as favorable for select cyclical companies, particularly those linked to capital expenditure, as valuations have become more appealing amid recent market corrections.
While the report indicates optimism, caution is advised regarding the information technology sector, which is facing potential disruptions from advancements in artificial intelligence and fluctuating global tech spending. Indian equities are now valued at approximately 18 times forward earnings, aligning closer to historical averages. Notably, the premium of Indian stocks compared to emerging markets has diminished significantly, indicating a possible reassessment of growth expectations. The recent retraction in prices has rendered Indian equities more appealing on a medium-term basis, but the path to sustained upside hinges on corporate earnings resilience amidst elevated input costs and inflationary pressures.
Looking ahead, Axis Securities projects India’s GDP growth to hover between 6.8% and 6.9% for FY27, bolstered by strong consumption trends and improving private investment. However, risks such as persistent crude oil pricing, currency volatility, and adverse climatic conditions due to El Niño could pose challenges to both growth trajectories and market valuations. For investors, maintaining a liquidity buffer of 10-15% is advisable for strategic deployment during market corrections, with a focus on high-quality companies demonstrating robust financial health and consistent earnings visibility over the forthcoming 12 to 18 months.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)