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| Company | Value | Change | %Change |
|---|
The brokerage said that the one-year forward price-to-earnings multiple for the Nifty is trading above its five-year average and that it anticipates these 10% returns in-line with earnings growth.
Keeping in mind the cautious view on the market, Jefferies said that it prefers largecaps to other smallcap and midcap names.
Among the sectors, Jefferies is “overweight” on financials, IT, Telecom, Auto, Healthcare, Utilities / Power and Real Estate. On the other hand, it has an “underweight” recommendation on Energy, Consumer Staples, Consumer Discretionary (excluding auto), and Materials. It has a “neutral” rating on the industrials space.
Jefferies believes that the slowdown seen in the Indian economy is shallow and will end by the first half of 2025. “A pick-up in government spending, improved liquidity and a low base of the previous year will result in GDP growth to pick up. This will also come as a relief for corporate earnings,” the brokerage wrote.
Indian equities in 2024 have been largely supported by domestic flows. The supply of paper has also accelerated with companies raising nearly ₹1.5 lakh crore this year already through IPOs. Jefferies believes that the supply of paper will remain elevated unless there is a correction in the market.
Among top picks for the year, Jefferies has highlighted largecap names like ICICI Bank, Axis Bank, SBI, Bharti Airtel, JSW Energy, TVS Motor, Coal India, Godrej Properties, and Sun Pharma.
| Stock | Target | Potential Upside |
| ICICI Bank | 1,550 | 17.40% |
| Axis Bank | 1,500 | 33% |
| SBI | 1,030 | 22% |
| Bharti Airtel | 1,920 | 18% |
| JSW Energy | 860 | 30% |
| TVS Motor | 3,270 | 32% |
| Coal India | 570 | 43% |
| Godrej Properties | 3,750 | 32% |
| Sun Pharma | 2,150 | 18% |
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