The Indian stock market staged a recovery in June as decline in geopolitical risks following de-escalation of tensions in West Asia, coupled with sharp correction in crude oil prices, encouraged investors to gradually rebuild equity exposure. According to reports from Livemint, the Nifty 50 index gained marginally by 1.35%, while the Nifty 500 and Nifty Midcap 100 indices rose by 1.5% and 0.12% respectively. However, the Nifty Smallcap 250 rallied over 4% and Nifty Microcap 250 jumped more than 6% last month, outperforming frontline indices supported by strong domestic liquidity. As per The Financial Express, Axis Securities notes that the easing geopolitical tension, declining crude oil prices, resilient domestic macroeconomic conditions, improving rural outlook and supportive policy measures from the Reserve Bank of India provide a favourable backdrop for equities.
Axis Securities has released its comprehensive list of 15 stock picks for July 2026, spanning large, mid and small caps across multiple sectors. The brokerage's top recommendations include Dalmia Bharat with a 43% upside target driven by capacity expansion across Kadapa, western India and central India, along with cost cuts that have already trimmed ₹100 a tonne off expenses this financial year. Bharti Airtel follows with a 37% upside target backed by the telecom major's industry-leading average revenue per user of ₹257 and management target of ₹300, plus a fast-scaling data centre business under its Nxtra unit. Eternal (formerly Zomato) carries a 36% upside target as its quick commerce and food delivery businesses turn adjusted-EBITDA positive, with management guiding for $3 billion in quick commerce order value by 2030. The complete list includes Bajaj Finance (15% upside), Varun Beverages (24%), Kotak Mahindra Bank (27%), ICICI Bank (24%), Avenue Supermarts (20%), LG Electronics India (17%), Nestlé India (17%), APL Apollo Tubes (26%), Ujjivan Small Finance Bank (32%), Chalet Hotels (23%), Minda Corporation (13%), Healthcare Global Enterprises (20%), and Chalet Hotels (23%).
Banking names feature prominently with Kotak Mahindra Bank, ICICI Bank and Ujjivan Small Finance Bank carrying upside targets of 27%, 24% and 32% respectively. The brokerage cited a turning credit cycle, easing stress in unsecured loan books, and stable net interest margins across the sector. Varun Beverages carries a 24% upside target after extending its PepsiCo bottling rights in India through 2049, while Avenue Supermarts (D-Mart) is given a 20% target on continued store expansion and steady gross and EBITDA margins of around 15% and 7-8% respectively. Nestlé India and LG Electronics both carry 17% upside targets, with the brokerage pointing to premiumisation and rural distribution gains at both companies. APL Apollo Tubes is flagged for a 26% target, prioritising per-tonne profitability over volume growth amid volatile steel prices. According to The Financial Express, Axis Securities continues to prefer sectors such as banking and financial services, telecom, capital goods, healthcare, power and energy, while maintaining a positive outlook on select consumption-related businesses and capital expenditure-linked companies.
Two stocks were dropped from the list this round — Axis Securities exited Kalpataru Projects and Navin Fluorine on profit-booking, replacing them with APL Apollo Tubes and Healthcare Global Enterprises. The latter was added on the back of India's shortage of advanced cancer-care infrastructure and the hospital chain's plan to add 1,000 beds by 2030. Axis Securities has cut its FY27 Nifty earnings per share estimate by 2.8% to ₹1,231 following the March-quarter earnings season, with the biggest downgrades coming in IT, financials, FMCG and discretionary sectors, while metals, industrials, automobiles and telecom saw upgrades. The brokerage described the broader market outlook as cautiously constructive, with Brent crude falling to around $73 a barrel following the ceasefire in West Asia, while bond yields have eased and the Nifty 50 trades close to its long-term average valuation of 18 times forward earnings. As per The Financial Express, Axis Securities maintains its December 2026 Nifty target at 27,220, recommending investors maintain good liquidity (10-15%) to use any dips in a phased manner and build a position in high-quality companies with an investment horizon of 12-18 months.
Axis Securities maintains its December 2026 Nifty target of 27,220 based on a valuation of 19.5x December 2027 earnings, with a bull case target of 28,615 and bear case of 23,030. The brokerage recommends investors maintain 10-15% liquidity to deploy during market declines in a phased manner and build positions in high-quality companies with 12-18 month investment horizon. According to The Financial Express, Axis Securities notes that the market is increasingly transitioning into an environment where earnings quality, valuation discipline and stock selection will determine investment success, rather than broad-based market expansion. The firm projects Nifty 50 earnings to grow at a robust 13% CAGR over FY23–28, with financials expected to remain the largest contributors to earnings growth in FY27 and FY28. The brokerage expects these structural drivers to support double-digit corporate earnings growth, enabling Indian equities to deliver healthy double-digit returns over the next 2-3 years. With the first quarter earnings season for FY27 getting underway, Axis Securities expects management commentary regarding future demand conditions will be equally, if not more, important than reported financial performance, with companies capable of delivering positive earnings surprises along with confident management commentary expected to outperform.
