..... . VALI disclosures . .....: 10/08/26, The Indian stock market has entered August with investors looking for stocks that can deliver returns over the next 12-18 months. The brokerage house Axis Securities has retained its list of 15 top picks for the month

Monday, August 10, 2026

10/08/26, The Indian stock market has entered August with investors looking for stocks that can deliver returns over the next 12-18 months. The brokerage house Axis Securities has retained its list of 15 top picks for the month

There is one important detail. The brokerage has made no changes to its August 2026 Top Picks list. Its preferred stocks span banking, financial services, consumer, telecom, industrials, healthcare and hospitality.

The upside potential ranges from 11% to 28%, with two stocks leading the list.

👉Which stocks have the highest upside?

Kotak Mahindra Bank and Bharti Airtel have the highest upside potential among Axis Securities’ August picks.

The brokerage has set a target price of Rs 500 for Kotak Mahindra Bank, implying an upside of 28%. Bharti Airtel also carries a target price of Rs 2,530, translating into a 28% potential upside.

Dalmia Bharat follows with a target price of Rs 2,260 and an upside potential of 26%. ICICI Bank is next, with a target of Rs 1,800 and 25% upside.

Avenue Supermarts and APL Apollo Tubes both have a 24% upside potential, with target prices of Rs 4,845 and Rs 2,250, respectively.

👉Company Target price Upside

Kotak Mahindra Bank Rs 500 28%

Bharti Airtel Rs 2,530 28%

Dalmia Bharat Rs 2,260 26%

ICICI Bank Rs 1,800 25%

Avenue Supermarts Rs 4,845 24%

APL Apollo Tubes Rs 2,250 24%

Chalet Hotels Rs 1,000 23%

LG Electronics India Rs 1,815 22%

Varun Beverages Rs 530 20%

Ujjivan Small Finance Bank Rs 86 20%

Eternal Rs 360 19%

Nestle India Rs 1,765 17%

Bajaj Finance Rs 1,305 14%

Minda Corporation Rs 785 12%

Healthcare Global Enterprises Rs 750 11%

Axis Securities is constructive on equities

Axis Securities said Indian equities continued their recovery in July, with the Nifty 50 gaining 2.2%. The Nifty 500 rose 2%, while the Nifty Midcap 250 and Nifty Smallcap 250 gained 1.8% and 1.1%, respectively.

The brokerage noted that leadership has gradually shifted towards large-cap stocks, with Information Technology, financials and selected industrial companies contributing to the Nifty 50’s performance.

So, what could drive the market from here?

According to Axis Securities, sustained domestic liquidity, government capital expenditure, Goods and Services Tax (GST) 2.0 reforms and an improving corporate earnings cycle could support equities.

The brokerage expects Nifty earnings to grow at a 13% compound annual growth rate (CAGR) over FY23-FY28, led by financial companies.

Axis sees Nifty target at 27,220

Axis Securities has retained its December 2026 Nifty 50 target at 27,220. It values the index at 19.5 times December 2027 estimated earnings.

However, the brokerage is also flagging near-term risks.

It expects volatility to remain possible due to crude oil prices, currency movements, geopolitical developments and foreign fund flows. The India Volatility Index (VIX) is currently around 11, indicating relatively lower market volatility.

Axis Securities therefore recommends maintaining 10-15% liquidity so investors can use market dips gradually.

Ola Electric Vs Ather: Which electric 2-wheeler stock is a better bet now? One offers up to 40% upside

Axis on markets: What are the bull and bear cases?

In its bull case, Axis Securities values the Nifty 50 at 20.5 times, giving a December 2026 target of 28,615.

However, its bear case assumes a valuation of 16.5 times, resulting in a target of 23,030.

For investors, the key point is that the brokerage has retained the same 15 stocks for August. Kotak Mahindra Bank and Bharti Airtel lead the list with 28% upside potential, while Healthcare Global Enterprises has the lowest projected upside at 11%.

Report by Olivia Kungumon

Source: Financial Express

Disclaimer: The stock recommendations, target prices, and market projections mentioned in this article represent the views of brokerage house Axis Securities and are intended solely for informational purposes. This content does not constitute an offer, solicitation, or personal financial advice to buy, sell, or hold any security. Equity investments are subject to market risks, and projected upside returns are not guaranteed. Readers should assess their individual risk tolerance and consult a SEBI-registered financial advisor before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.

No comments:

Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

Pages

logo

Monday, August 10, 2026

10/08/26, The Indian stock market has entered August with investors looking for stocks that can deliver returns over the next 12-18 months. The brokerage house Axis Securities has retained its list of 15 top picks for the month

No comments:

Today's

14/08/26, India’s electronics exports have grown

.

Translate