Nifty 50 valuations are rich, offer 8-10% upside in 2024, says HDFC Securities; lists out stocks to accumulate next year

The valuations of Indian stock market indices are rich and leave a little room for any large upside next year, according to brokerage firm HDFC Securities which expects Nifty 50 to see another 8-10% upside from the current levels. ..

The Nifty 50 index is now trading at ~23x FY24 and ~20x FY25 consensus EPS, indicating limited upside potential in the next 12 months, said the brokerage house..

It believes growth hereon will be volume led while the margin expansion story is largely over..

Projected earnings growth for HSIE coverage universe (~215 stocks): 29% and 8% for FY24 & FY25 respectively (Ex-energy 19% and 15% for FY24 & FY25, respectively, as FY23 was an exceptional low base year for energy)," the brokerage firm said in a report..

Meanwhile, Dhiraj Relli, MD & CEO of HDFC Securities said that the outcome of the general election will have a limited impact on the market as investors have already started pricing in the incumbent BJP retaining power after the impressive win in the state polls, and political stability because of that..

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