- February 19, 2025
Emkay Sees Nifty At 25K By Year-End, Bets On Tata Motors, IndusInd Bank, Lupin, Zomato – News18
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Ekmay remains optimistic about a gradual recovery in consumption during the second half of CY25; Shares top investment bets
Emkay sees Nifty at 25k by year-end
Emkay Institutional Equities forecasts continued weakness in the Indian equity market in the near term, with heightened volatility expected. However, the brokerage remains optimistic about a gradual recovery in consumption during the second half of CY25. This recovery is anticipated to be driven by improved employment trends, a rebound in unsecured lending, and increased welfare spending.
Nifty Target for December 2025
The brokerage sets a target for the Nifty index at 25,000 by December 2025, with expectations that Foreign Portfolio Investor (FPI) selling will subside by Q2CY25.
Top Investment Picks
Emkay’s top investment recommendations in the large-cap segment include Lupin, Zomato, Tata Motors, and IndusInd Bank. In the midcap space, the brokerage is bullish on Escorts, Paytm, and Metropolis, while in the small-cap segment, Stovekraft and Quess Corp are identified as key picks.
Sector Outlook
In terms of sector allocation, Emkay maintains an overweight stance on discretionary, real estate, and healthcare sectors. It remains neutral on industrials, IT, and energy, while financials, staples, and materials are underweight due to structural concerns and valuation pressures.
Discretionary Consumption Recovery in 2-3 Quarters
Emkay expects a recovery in discretionary consumption within the next 2-3 quarters. This rebound will likely be driven by a resurgence in IT hiring, improved liquidity conditions, and better dynamics in retail lending. Additionally, government-led women-centric welfare schemes and strong winter crop sowing are expected to support positive consumption trends.
FPI Selling and Market Stabilization
Regarding the ongoing FPI selling, Emkay anticipates stabilization in foreign portfolio activity after Q1CY25. This is expected as valuations moderate and earnings forecasts bottom out over the next 2-3 months. A peak in the US Dollar Index (DXY) could also ease concerns over rupee depreciation, helping to curb FPI outflows. Furthermore, liquidity infusion by the RBI could stimulate domestic equities, particularly benefiting the BFSI sector.
Nirav Sheth, CEO of Institutional Equities at Emkay Global Financial Services, stated: “Markets tend to over-react and overextend on both the upside and downside. The bottoming process is usually volatile, which we are currently witnessing. Our macros are solid, given the low and stable current account deficit (CAD), fiscal deficit under control, and a more accommodative monetary policy. We estimate that the worst of the earnings downgrade cycle is behind us and expect a recovery in the second half of the fiscal, triggered by renewed government spending and consumption-led tax relief. It is time to buy.”
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
