Nifty target is at 21500 (20x FY25 EPS). Top 7 stock recommendations with up to 35% upside by ICICI-Direct

Equity Markets, globally, have faced jitters amid the concerns over elevated rates in US as well as geopolitical tension. Nonetheless, unlike Ukraine/Russia, current Israel/Palestine conflict is smaller in scale both in terms of geographical/countries participation as well as global trade impact. Thus, overall impact is likely to be limited in terms of commodity or equities or markets. Moreover, Positive catalysts such as a) robust corporate earnings (likely to grow at 16.5% CAGR over FY23-25) and b) Favourable Growth-Inflation dynamics of India (~6-7% sustainable growth with comfortable inflation of ~5%), indeed, makes India an outlier as an Equity investment destination in the medium to long term amid dwindling global growth milieu.

Our one year forward, Nifty target is at 21500 (20x FY25 EPS) with sectoral bias towards banks, capital goods/infrastructure, power, while avoiding sectors having more global exposure like IT, oil & gas etc. We continue to see reasonable opportunities across the market spectrum with key filter being quality.

We continue to advise investors to utilise equities as a key asset class for long term wealth generation by investing in quality companies with strong earnings growth and visibility, stable cash flows, RoE and RoCE.