In the Nifty-50 index, its peak of September 2024 has fallen by about 13 per cent so far. However, the International brokerage firm City Research (CITI Research) believes that the Nifty 50 can compensate the decline this year and it can reach the level of 26,000 again by December 2025. This shows an estimate of about 13 per cent rise in Nifty from the current level. City Research believes that the recent decline in the stock market has made large-cap companies attractive to investors. The prices of these companies have now come to a more reasonable level.
Brokerage said that apart from this, consumers will save more money from the reduction in income tax rates, cuts cut in repo rate and inflation rate, which will promote investment and consumption. Also, this year is expected to increase the cost of the government’s expenses, which can speed up economic activities.
Citi Research Which shares are bullish on?
Brokerage has repeated his ‘shopping’ (BUY) rating on shares of HDFC Bank, Kotak Mahindra Bank, Maruti Suzuki, Enditance Technologies, HDFC Life, Torrent Pharma and Mekomatrip. At the same time, the city on the sectoral front is currently bullied on banking, telecom and pharma shares. On the other hand, it is underweight at IT, metal and consumer designing counter.
City analyst Surendra Goyal said in a report earlier last month that the EPS (Earnings per share) of Indian companies is strong and due to companies listed in various fields, it remains a relatively low -risk market. However, brokerage also says that the boom in private investment can still be difficult.
Brokerage also said that government spending is accelerating and the fiscal deficit in FY 2026 is expected to be lower compared to FY 2025. Meanwhile, RBI has begun focusing on measures to increase liquidity in the market, which has been a major cause of recent lethargy. Retail investors have also shown flexibility, which has strengthened the possibility of market boom.
However, among this, there are some risks like mistakes at the policy level, deep decline in the US market and global economic lethargy. City said that despite these uncertainty, better fundamentals have prepared a platform for recovery.
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