“We advocate growing money positions by as much as 10% within the brief time period and using any market dips in a phased method to construct positions in high-quality corporations with sturdy earnings visibility,” Axis Securities mentioned in its newest funding technique report.
The brokerage maintained a desire for large-cap personal banks, telecom, consumption, hospitals, and interest-rate proxies, naming HDFC Financial institution, ICICI Financial institution, State Financial institution of India, Bharti Airtel, Trent Ltd, Hero MotoCorp, Max Healthcare, Indian Accommodations, Kalpataru Initiatives, APL Apollo Tubes, Varun Drinks, Status Estates, and Cholamandalam Funding and Finance as its high picks.
Axis Securities mentioned it expects the pharmaceutical sector—exempt from the brand new U.S. tariffs—to learn within the close to time period. “The pharma sector may see a breather rally within the coming days,” the brokerage famous. Indian drugmakers have already seen positive aspects on Thursday, pushed by aid that the brand new levies spare the nation’s largest export class to the U.S.
Regardless of the tariff shock, Axis Securities mentioned it sees India comparatively insulated in comparison with different affected nations, with China, Vietnam, and Taiwan dealing with even steeper levies. “The danger-reward stability seems to favor domestic-facing sectors because of minimal affect from reciprocal tariffs, whereas export-oriented sectors will stay in a wait-and-watch mode,” the brokerage mentioned.
In the meantime, Axis Securities has downgraded the IT sector, warning {that a} slowdown in U.S. spending, coupled with the affect of tariffs, may stress earnings and valuations. “With the in a single day improvement of Trump tariffs, the probabilities of downgrades have additional elevated. Therefore, we advocate decreasing positions within the IT sector,” the brokerage mentioned.Wanting forward, the brokerage highlights home tailwinds, together with latest Reserve Financial institution of India coverage strikes and a government-led consumption increase, as elements that would assist market stability in FY26. Nonetheless, it stays cautious on international dangers, notably the potential for a slowdown within the U.S. financial system.Additionally learn | Trump tariff hike hits Dalal Road: 4 sectors dealing with the largest affect, international brokerages decode
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