Jefferies has projected a Nifty target of 26,000 for 2025, highlighting a preference for large-cap stocks over mid-caps. The brokerage expects market returns to align with earnings growth, pegging them at 10% over CY25. Despite elevated valuations, Nifty’s one-year forward PE at 20.5x remains 6% above its five-year average.
Jefferies predicts that banks will be a strong outperformer as growth picks up, maintaining an overweight stance on ICICI Bank, SBI, Axis Bank, and Bharti Airtel. Top picks also include JSW Energy, TVS, Coal India, Godrej Properties, and Sun Pharma. The brokerage anticipates a 50 bps rate cut by the Reserve Bank of India (RBI) in 2025, which could support growth momentum.
The report notes that cyclicals and defensives are likely to attract investor interest in a balanced portfolio approach as earnings recovery and valuations drive market dynamics.
