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Ekmay remains optimistic about gradual recovery in consumption during the second half of Cy25; Share top investment bets
Emkay sees Nifty at 25k by the end of the year
The forecast of EMKAY institutional equities continued to be weak in the Indian equity market in the near period, expecting increased instability. However, the brokerage remains optimistic about the gradual recovery in consumption during the second half of Cy25. This recovery is estimated to be operated by better employment trends, a reversal in unprotected borrowings, and an increase in welfare expenses.
Nifty target for December 2025
The brokerage sets a target for the Nifty Index at 25,000 by December 2025, which is expected that the sales of foreign portfolio investors (FPIs) will be reduced by Q2cy25.
Top investment pick
MK’s top investment recommendations in the Large-Cap segment include Lupine, Zomato, Tata Motors and IndusInd Bank. In midcap space, brokerage escorts, Paytm and Metropolis, while in the small-cap segment, Stobakraft and Quas Corp are identified as the major pics.
Area outlook
In the context of sector allocation, EMKAY has to be overweight on discretionary, real estate and healthcare sectors. It remains neutral on industrial, IT and energy, while financial, staples and materials are low weight due to financial concerns and evaluation pressures.
Considering recovery in 2-3 quarters
Emkay is expected to recover in discretionary consumption within the next 2-3 quarters. This rebound will probably be operated by resurrection in IT work, improving liquidity conditions and re -resurrection in better dynamics in retail borrowings. Additionally, the government-led women-focused welfare schemes and sowing of strong winter crop are expected to support positive consumption trends.
FPI sales and market stabilization
Regarding the ongoing FPI sales, the Emkay Q1cy25 estimates stabilization in foreign portfolio activity. It is expected that in the next 2-3 months, there is a forecast of moving down and earning. A peak in the US Dollar Index can also reduce concerns over the depreciation of the rupee, which can help in curbing FPI outflow. In addition, liquidity by RBI can stimulate infusion domestic equity, especially BFSI sector.
Nirav Sheth, CEO of institutional equities in Emkay Global Financial Services, said: “The market performs more reacts and overlexing on both upside down and negative. The process below is usually unstable, which we are currently seeing. Our macro is solid, low and stable current account deficit (CAD), fiscal deficit in control, and a more adjusted monetary policy. We guess that the worst cycle of earnings is behind us and is expected to recover in the second half of the fiscal, which has begun with renewed government spending and consumption tax relief. It is time to buy. ,
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