Axis Securities says this is the time to review the entire portfolio; tells how to make money in this market

While maintaining an ‘overweight’ stance on equities, Axis Securities believes that it is time to review the entire portfolio. The brokerage thinks that asset allocation and sector rotation are the keys to outperforming in FY25. Axis Securities sees the benchmark NSE Nifty 50 index at 24,600 by March 2025. The index was hovering at around 25,000 in the morning trade on September 10.

However, it recommends that investors remain invested in the market and maintain good liquidity (10%). They should use any dips in a phased manner and build a position in high-quality companies with high earnings visibility, with an investment horizon of 12-18 months.

“We believe that with the recent run-up in the market, most of the narrative is already priced in. We see near-term consolidation in the market with style and sector rotation playing a meaningful role in alpha generation,” Axis Securities said.

While sharing its portfolio allocation strategy, Axis Securities suggested that balanced investor can keep 50% of their wealth in equities, 35% in debt and 15% in gold. Aggressive investors can keep 90% of their money in equities and 5% each in debt and gold.

The brokerage highlighted that the ‘Value’ and ‘Growth’ styles have outperformed the other styles by notable margins in the last three months.

“The selected value stocks from the PSU, metals, commodities, utility and cement sectors are well-placed to deliver superior performance. Value stocks in the BFSI space have outperformed other themes for the last couple of months and their outperformance is likely to continue moving forward. Furthermore, a structural growth play offering long-term earnings visibility will continue to do well,” Axis Securities said in a report adding the theme ‘Growth at a Reasonable Price’ looks attractive on account of the robust growth expectation, the cool-off in commodity prices, lowering inflation, rural recovery and the expectation of margin recovery in the upcoming quarters.

Considering the present market condition, HDFC Bank, ICICI Bank, Dalmia Bharat, Nestle India, State Bank of India, HCL Tech, Lupin, Aurobindo Pharma, Federal Bank, Varun Beverages, TVS Motors, Bharti Airtel, J Kumar Infra, Prestige Estates, Sansera Engineering and Cholamandalam Invest and Finance are among the top picks of Axis Securities.