Stocks to buy for long-term: The Nifty 50 could touch 29,500 by December 2026 in a ‘Goldilocks scenario’ of stable global growth, softer volatility, and policy continuity under the new U.S. administration. This is supported by robust macroeconomic trends, Axis Securities projects 13% CAGR Nifty earnings growth over FY23–28, led largely by financials.
In its base case, the brokerage revised its Nifty target to 28,100 for December 2026, valuing the index at 20x Dec’27 earnings. While the bear-case target of 24,000 assumes persistent inflation in the developed world, currency pressure, and slower earnings recovery due to global trade disruptions.
Strong Market Backdrop Ahead of FY26
The brokerage credited multiple domestic triggers for restoring investor confidence heading into FY26. These include the 50 bps CRR cut in December 2024, expectations of 100 bps rate cuts by the RBI, improved liquidity measures, the consumption boost from the Union Budget, and the roll-out of GST 2.0 reforms. Together, these indicators suggest “better days ahead in FY26 than FY25,” with stronger prospects for credit growth and consumption revival.
Axis Securities emphasised that while domestic policy intent remains strong, the pace of transmission will determine how quickly these reforms translate into corporate earnings. Rural demand has also begun showing signs of improvement, which, if sustained, could further support the economic rebound.
Axis Securities’ Top Stock Picks for December
Axis Securities has released its high-conviction stock picks for December, framing them against the backdrop of a strong recovery in Indian equities since October 2025. The brokerage highlighted that the Nifty 50 has rallied more than 1,500 points since October, driven by better-than-expected earnings, improving domestic macros, and rising optimism around India’s tariff negotiations and consumption cycle.
The 15 high-conviction stock ideas across financials, telecom, consumption, energy, real estate, and industrials. The brokerage emphasized that these companies offer a combination of solid earnings visibility, industry leadership, strong balance sheets, and reasonable valuations.
Axis Securities’ top stock picks for December include –
Largecaps: HDFC Bank, Bajaj Finance, Bharti Airtel, Avenue Supermarts, State Bank of India, Max Healthcare
Mid- and small-caps: Kirloskar Brothers, Kalpataru Projects, APL Apollo Tubes, Mahanagar Gas, Inox Wind, Prestige Estates, Ujjivan Small Finance Bank, Chalet Hotels and Sansera Engineering.
Strategy: Quality, Growth and Domestic Cyclicals to Lead
Axis Securities believes that style and sector rotation will be crucial to generating alpha in the coming quarters. While the risk-reward is gradually improving for mid- and small-caps, recovery will likely be slow until FY26 earnings visibility strengthens.
The brokerage maintains preference for – BFSI, Telecom, Consumption, Hospitals, and interest-rate proxies, select capex-driven cyclical plays showing stable visibility, and domestic-oriented leaders and monopolies across sectors.
However, it continues to remain cautious on export-oriented sectors, given tariff uncertainty and global growth risks.
Liquidity and Volatility Outlook
India’s VIX remains below its long-term average, placing markets in a “neutral zone.” While the medium- to long-term picture remains positive, short-term volatility is likely. Axis Securities recommends maintaining 10–15% liquidity to accumulate high-quality stocks during market dips.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
