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The Nifty 50 index wrapped up 2024 with over 8% annual returns, and is projected to hit the 26,500 mark by March 2026 — reflecting a 10% potential upside from the current levels, driven by evolving consumption dynamics, the rise of midcap stocks and a strong capital expenditure revival as government spending regains momentum, according to Antique Stock Broking . As India embarks on its 2025 growth journey, sectors such as industrials, defence, power utilities, real estate, and cement stand out as beneficiaries of this trend, the brokerage said. With political hurdles easing and a conducive macroeconomic environment, the brokerage said the “government capex has started picking up again and it will gather more steam in the next one year.
” Both government and private capex are expected to gain momentum, with sectors such as industrials, defence, power utilities, real estate, and cement taking the lead. The financial sector presents a mixed picture. While credit growth remains under pressure due to credit substitution and slower deposit growth, the brokerage said it favours public sector banks, citing attractive valuations and better loan-to-deposit ratios compared to their private counterparts.
Meanwhile, consumption trends are undergoing a significant transformation, with traditional staples ceding ground to discretionary and new-age segments. The brokerage pointed to a shift in value propositions, particularly in rural areas, where recovery is expected to fuel discretionary spending. Preferred sectors include retail, quick-service restaurants, hotels, and telecom, while staples and paints are expected to underperform due to subdued demand and intense competition.
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Antique Stock Broking’s top stock picks for 2025 focus on capex-driven sectors, with a strong emphasis on industrials, defence, and utilities. Among largecap stocks, Bharti Airtel , ICICI Bank , and Hindustan Aeronautics stand out. Bharti Airtel, with its promising telecom sector dynamics and the potential for another round of tariff hikes, is poised for strong growth.
ICICI Bank and State Bank of India are favoured in the banking sector for their stable loan growth and attractive valuations, with PSU banks offering better risk-reward ratios compared to private sector counterparts. In the industrial space, Hindustan Aeronautics is expected to benefit from a strong order backlog in defence. In the midcap category, the brokerage highlighted companies like Godrej Properties and Marico for their growth potential.
Godrej Properties is seen benefiting from the ongoing real estate boom, while Marico’s focus on premium consumer products positions it well for growth in a recovering economy. While Nifty-50 EPS is expected to grow at a compounded annual growth rate of 15%, Nifty Mid-cap 100 and smallcap 100 are projected to grow at 25% and 20%, respectively, over the next two years, according to Antique Stock Broking. Also read | Kotak Mahindra Bank shares rally over 2% on upgrades from both Jefferies and Citi (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
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