According to NDTV Profit reports, Manav Chopra, Executive Director at Nuvama Institutional Equities, maintains that the broader market remains in a bull phase despite recent consolidation in benchmark indices. Chopra emphasized that strength in the equal-weight index, Next 50 and small-cap and mid-cap stocks suggests the current phase represents a correction within a larger bull market rather than a structural breakdown. The Nifty Equal Weight Index has already recovered its entire decline and touched a fresh all-time high, while the Next 50 and SMID segments are also at record levels, with the NSE 500 remaining close to its peak.
As reported by NDTV Profit, Chopra prefers the Nifty 500 as a broader gauge of market strength, given its representation of around 97% of total market capitalisation. He expects a 15-25% upside for the Nifty 500 over the next 12-15 months once the market confirms a breakout above the 24,500 level on the Nifty. According to Chopra, the ongoing consolidation is helping markets build higher bases before the next leg of the rally.
According to NDTV Profit reports, Chopra remains particularly bullish on small and mid-cap stocks, with auto ancillaries, mid-sized private banks, NBFCs, microfinance, healthcare and capital goods among his preferred segments. Within the BFSI sector, he highlighted a breakout in the Nifty Private Bank-to-Nifty 50 ratio after nearly five years of underperformance, suggesting the private banking sector could sustain its relative outperformance. He expects the private banking index to rise from around 27,000 towards 32,000, with positive outlook on Axis Bank and ICICI Bank, while seeing further upside potential in mid-sized names such as RBL Bank and IDFC First Bank. Chopra remains bullish on auto ancillaries, although the space may consolidate after its strong performance over the past six months.
As reported by NDTV Profit, Chopra expects the tyre segment to see a sharp turnaround if there is further de-escalation in global tensions and crude prices continue to ease. He noted that crude has formed lower peaks during successive phases of escalation, while several tyre stocks have held their recent lows and are showing signs of accumulation. International rubber prices also appear to be topping out, adding to the positive setup for tyre companies. Chopra expects several stocks in the segment to retest their previous all-time highs and potentially move another 20% higher.
According to NDTV Profit reports, Chopra sees Bank Nifty's 58,500 as an important trigger, with a sustained move above that level potentially taking the index towards 63,000-64,000. For his dark-horse bets, Chopra favours a combination of tyres, chemicals and mid-sized private banks. The tyre segment represents his preferred turnaround opportunity, while chemicals and mid-sized private banks offer potential for significant gains in the current market environment.
