Suzlon Energy, Zomato, ITC: Stocks that analysts like in May; Nifty outlook & more
Suzlon Energy, Zomato, ITC: Stocks that analysts like in May; Nifty outlook & more
Suzlon Energy Ltd, Zomato Ltd, ICICI Bank Ltd, Aurobindo Pharma Ltd, Coal India Ltd and Indian Hotels Ltd are among stocks that are on brokers’ radar in May. The month has kicked off on a weak note, with Sensex and Nifty falling about 2 per cent each amid global concerns and ongoing earnings season and Lok Sabha elections at home.
Axis Securities in its May note said the broader market may see some time correction in certain pockets in the near term and flows will likely shift to largecaps. “In our base case, we maintain our December24 Nifty target at 23,000 as we value it at 20 times on December 2025 earnings,” Axis Securities said.
ICICI Securities said its top picks include IndusInd Bank, Utkarsh SFB, Ambuja Cements, ONGC, HPCL, GAIL, JSPL, JSL, Solar Industries, Azad Engineering, Inox India and Suzlon Energy. Besides, it likes shares such as Chemplast, Kajaria, Aurobindo Pharma, Dr Lal Pathlabs, M&M, Balkrishna, Havells India , Zomato Ltd and Info Edge Ltd. The domestic brokerage has one-year forward (April 2025) target of 24,500 for Nifty.
“Q4FY24 results so far indicate higher number of PAT beats led by domestic cyclicals (financials, industrials & auto)
while defensives have more misses (IT & consumption),” it said.
Motilal Oswal said three important factors that are likely to dominate investor conversations: Political continuity, consumption slowdown and institutional flows.
“Multiple opinion polls are predicting a return of the BJP-led NDA government with a full majority for an unprecedented third term. This augurs well for sustained economic reforms and continued policy momentum, with a focus on capex, manufacturing, and infrastructure development. However, this could keep equity market multiples elevated, in our view,” it said.
The domestic brokerage said both macro and micro indicators suggest a persistent weakness in consumption, particularly noticeable in rural India. With inflation moderating and predictions of a normal monsoon, coupled with election spending, it expects consumption trends to bottom out and contribute to growth in 2HFY25.
Motilal Oswal stayed overweight on financials, consumption, industrials and real estate. Industrials, consumer discretionary, Real estate and PSU banks are its preferred investment themes.
Motilal Oswal likes ICICI Bank, State Bank of India (SBI), L&T, Titan, ITC, HCL Tech, Coal India, M&M, Zomato, and Hindalco. Among midcap and smallcap stocks, it likes Indian Hotels, Godrej Properties, Global Health, KEI Industries, PNB Housing, KOEL, Cello World, Sobha, Lemon Tree Hotel and JK Cement.
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