Top Stock Market Investment Ideas for 2025 :The year 2024 is about to end, Nifty is going to end this year with a gain of about 9 percent. Brokerage house Motilal Oswal says that if we talk about the year 2025, the stock market may see two phases in the entire year. Some decline or consolidation may be seen in the market in the first half, while recovery may be seen in the second half. The start of the rate cut cycle by RBI, the ongoing rate cut in the US and the global policy after Donald Trump takes charge as the US President in January 2025 will influence the market direction.
Highest Return 2024: Up to 434% return this year, these stocks including Zomato, Trent, ICICI Bank became toppers in their respective categories.
Apart from this, the Union Budget in February 2025 will give important signals on the trend of government spending. With a subdued global economic environment and mixed macroeconomic factors domestically, the market is expected to remain in consolidation mode in the near term. At present, what will be the outlook of the market in the year 2025, how will be the corporate earnings, which sectors will see growth. Brokerage house Motilal Oswal has released a report on which shares investors should invest in.
Senores Pharma: Another blockbuster IPO as the year 2024 approaches, Senores Pharma gave 52% return on listing.
Main triggers for 2025
* Domestic factors: Union Budget, government expenditure, start of rate cut cycle by RBI, FII trend.
* Global Factors: Trump Trade Policy, US Interest Rates, Geo-Political Issues
* Earnings and Valuation: Corporate earnings growth trends and broader market valuations
Return in IPO: The secret of high returns, small size IPO made the highest income in 2024, money increased by 100 to 300%
Valuation and theme
The brokerage house says that Nifty reached an all-time high level of 26,277 in September 2024, the main reason for which was the regular momentum in the market and strong domestic flows. However, later it fell to about 11 percent from this peak. This brings Nifty’s valuation to 19.2x 1-year Forward P/E, which is below its 10-year average of 22x. The brokerage house expects earnings to pick up from H2 and may yield 16 percent CAGR returns in FY25-27E. Additionally, market correction and softening valuations provide an opportunity to add to select bottom-up stock ideas. Given the strength of corporate India’s balance sheets and the prospects for strong, profitable growth, we remain optimistic about the long-term trend.
As far as the sector is concerned, the brokerage house is positive on BFSI due to comfortable valuations and improvement in business growth. The brokerage expects revival in the export sector (IT, Pharma) as the rupee has hit an all-time low and demand in key sectors has improved. Continuous spending can be seen in sectors like jewellery, real estate and travel and tourism. Themes like capital markets, EMS, digital e-commerce can continue to drive strong earnings growth.
Investment: Looking for the best option for investment in the year 2025, these 4 themes can brighten your portfolio.
2025: Top stocks for investment
ICICI Bank
Current price: Rs 1308
Target price: Rs 1550
Return Estimate: 19%
HCL Tech
Current Price: Rs 1890
Target price: Rs 2300
Return Estimate: 22%
L&T
Current price: Rs 3611
Target price: Rs 4300
Return Estimate: 19%
Zomato
Current price: Rs 272
Target price: Rs 330
Return Estimate: 21%
Polycab
Current price: Rs 7143
Target price: Rs 8330
Return Estimate: 17%
Godrej Properties
Current price: Rs 2830
Target price: Rs 3725
Return Estimate: 32%
NAM India
Current price: Rs 730
Target price: Rs 900
Return Estimate: 23%
IPCA Lab
Current Price: Rs 1639
Target price: Rs 1930
Return Estimate: 18%
Lemon Tree
Current price: Rs 149
Target price: Rs 190
Return Estimate: 28%
PN Gadgil
Current price: Rs 698
Target price: Rs 950
Return Estimate: 36%
(Disclaimer: The view or advice on the share is given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
