Nifty to hit 17,250 by June 2022, says ICICI Securities; SBI, HDFC Bank, GAIL among top stock picks

On the financial entrance, ICICI Securities highlighted that the most recent GDP print signifies financial restoration is led by investments.
(Picture: REUTERS)

Nifty 50 might proceed to scale new milestones over the subsequent 12 months, taking the index to a file excessive of 17,250 by June 2022, stated home brokerage and analysis agency ICICI Securities in a report. Analysts at ICICI Securities consider that bettering earnings of India Inc. together with a conducive setting for capital expenditure cycle would assist the benchmark index develop and attain contemporary all-time highs. To this point, for the reason that March 2020 fall, Nifty 50 has greater than doubled to succeed in an all-time excessive of 15,901 this week.

Enhancing web revenue to GDP

“Quarter 4 of the monetary 12 months 2021 is popping out to be the fourth consecutive quarter of earnings beat exceeding misses, which has resulted in PAT/GDP rising additional to 2.8% regardless of an upward revision to FY21 GDP base,” ICICI Securities stated within the report. The online revenue to GDP ratio is climbing from a two-decade low stage of 1.6%. For the broader Nifty 200, the ‘Look via earnings’ have risen sharply by 120% pushed by cyclicals within the January-March quarter. Sectors equivalent to metals, cement, constructing materials, capital items, and autos have posted robust quarterly outcomes.

Atmosphere conducive for capex cycle

On the financial entrance, ICICI Securities highlighted that the most recent GDP print signifies financial restoration is led by investments as the actual funding charge rose to a 2-year excessive of 34.3% pushed by sturdy building and manufacturing sector together with larger authorities spending. “Building (14.5% YoY), manufacturing (6.9% YoY) and electrical energy (9.1% YoY) development have been sturdy in Q4FY21 as evidenced by GDP print, company outcomes and sturdy merchandise exports,” they added. Additional, the enlargement of PMI manufacturing has been constructive to this point this fiscal and GST collections are bettering. “We consider the setting for capex cycle is popping conducive at a macro stage,” the report stated.

Declining actual rates of interest, ample availability of monetary sources for corporates for reinforcing investments as demand revives, countercyclical fiscal coverage, conducive coverage for reinforcing manufacturing, sturdy world demand, and buoyant commodity cycle are among the constructive chalked out by ICICI Securities in favour of capital expenditure. 

High inventory picks

Speaking shares, the brokerage agency has listed out 14 shares as its prime picks. These embody financials, industrials, and even auto shares. These are SBI, Axis Bank, HDFC Bank, NTPC, PTC India, L&T, Ultratech, Bharti Airtel, Tata communications, GAIL, Tata Motors, TVS Motors, Motherson Sumi, and Jyothy Labs.

(The inventory suggestions on this story are by the respective analysis and brokerage corporations. Monetary Specific On-line doesn’t bear any accountability for his or her funding recommendation. Please seek the advice of your funding advisor earlier than investing.)