Stock Picks for 2025: HDFC Bank to Senco Gold— Religare Broking suggests THESE six stocks to ‘accumulate’ for long-term | Stock Market News

Stock Picks for 2025: HDFC Bank to Senco Gold— Religare Broking suggests THESE six stocks to ‘accumulate’ for long-term | Stock Market News

Stocks picks for 2025: The Indian stock market’s performance in 2024 has been notably positive, with significant gains across major indices. On the benchmark front, both Nifty 50 and Sensex edged higher for the ninth consecutive calendar year and have surged nearly nine per cent. The upward trend reflects a broader rally, with both indices consistently reaching new highs with the Nifty crossing multiple milestones, from 22,000 to 26,000, in a relatively short period. 

However, in the second half of 2024, the market faced challenges such as weak corporate earnings, foreign outflows, elevated inflation, and sluggish economic growth. Despite these headwinds, steady buying by domestic investors and strong participation from retail investors have supported the markets.

As we move into 2025, several notable trends are expected to influence markets in India and globally. Shifts in US trade policies, including higher tariffs, could alter international trade patterns and supply chains, prompting countries like India to reassess trade agreements and potentially introduce market uncertainty.

Additionally, resolving ongoing geopolitical conflicts could stabilize global markets and improve economic sentiment. Furthermore, a recovery in corporate earnings is anticipated as businesses rebound from a period of slower growth, supported by higher government capital expenditures and renewed private-sector investments. 

Moreover, as inflationary pressures ease, the demand environment could improve, boosting consumer spending and increasing purchasing power. Together, these factors are likely to create a dynamic environment, offering investors both opportunities and challenges.

Analysts at domestic brokerage Religare Broking say investors are advised to focus on accumulating fundamentally strong stocks during market dips, particularly those with solid balance sheets and growth potential, to navigate fluctuations.

Stocks picks for 2025 by Religare Broking:

Let’s take a look at the top six technical and fundamental stocks for the New Year by domestic brokerage Religare Broking:

Following the merger with HDFC, the bank’s credit-to-deposit (CD) ratio experienced significant deterioration, reaching levels as high as 108.4 per cent. However, this trend has recently begun to reverse, with the CD ratio falling to 100.7 per cent in Q2 FY25, as the bank has increased its focus on deposit growth.

Asset quality continues to remain Robust: Asset quality saw marginal deterioration during the quarter, but overall asset remains robust as Gross NPA (GNPA) and Net NPA (NNPA) remain at the lower end of its historical range. And is expected to remain around current levels only.

Re-rating potential: The elevated CD ratio has been a significant challenge for HDFC Bank, adversely affecting its margins and growth and leading to a decline in its valuation multiple. However, as the bank gradually improves its CD ratio, we can expect to see a gradual margin enhancement over the next few quarters, and the potential for a re-rating should not be overlooked.

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