Despite the recent correction in Indian equities, ICICI Securities remains constructive on the market, arguing that the selloff reflects external pressures rather than any meaningful deterioration in corporate earnings. With Q2 FY27 earnings showing strong growth, valuations slipping below their long-term averages, and the domestic earnings cycle gaining momentum, the brokerage believes the risk-reward equation is turning more favourable for investors.
It expects the Nifty 50 to deliver healthy double-digit returns over the next 12 months, with quality mid- and small-cap stocks offering opportunities as markets increasingly shift their focus from liquidity and valuations to earnings delivery.
The brokerage's Muhurat Trading picks include Venus Pipes and Tubes, Kotak Mahindra Bank, Zydus Lifesciences, Info Edge, Adani Ports and SEZ, Apollo Micro Systems, Neogen Chemicals, Indian Hotels, Saregama India and Ethos.
ICICI Securities expects Kotak Mahindra Bank to deliver 20–22% advances growth, supported by a gradual recovery in net interest margins and sustained moderation in credit costs. These factors are likely to drive earnings growth and improve return on assets (RoA) over FY27–FY28, the brokerage said.
The brokerage values the standalone bank at 2.4 times its FY28 book value and its subsidiaries at ₹127 per share. It has maintained a Buy rating on the stock with a target price of ₹540.