Indian Stock Market 2024 Recap and Best Stock Picks for 2025 by Religare Broking

The Indian stock market displayed a resilient performance in 2024, with significant gains across major indices. Both the Nifty 50 and Sensex recorded their ninth consecutive year of growth, surging nearly 9% over the year. This rally was marked by the Nifty crossing key milestones, from 22,000 to 26,000, reflecting strong investor confidence and broad market participation.

Despite challenges in the second half of the year, including weak corporate earnings, foreign outflows, high inflation, and slower economic growth, the markets maintained an upward trajectory. Domestic and retail investors played a crucial role in stabilizing market sentiment, driving consistent buying activity amid volatility.

Outlook for 2025

As we transition into 2025, several macroeconomic and geopolitical factors are expected to influence the Indian stock market:

1. Shifts in Global Trade Policies: Changes in U.S. trade policies, such as higher tariffs, could impact international trade dynamics, compelling countries like India to reassess trade agreements and supply chains.

2. Geopolitical Resolutions: Resolving ongoing global conflicts could stabilize markets, fostering improved investor confidence.

3. Corporate Earnings Recovery: Businesses are expected to rebound, supported by increased government capital expenditure and private-sector investments.

4. Easing Inflation: A reduction in inflationary pressures could boost consumer spending, enhancing economic growth.

These trends are likely to create a dynamic investment landscape, offering both opportunities and challenges. Experts at Religare Broking advise investors to focus on fundamentally strong stocks with robust growth potential to navigate market fluctuations.

Top 6 Stock Picks for 2025 by Religare Broking

Religare Broking has identified six high-potential stocks for 2025 based on technical and fundamental analysis. Here's a detailed look at their recommendations:

1. HDFC Bank

• CMP: ₹1,797.65

• Accumulation Range: ₹1,720–1,810

• Target: ₹1,920–2,008

Post-merger with HDFC, HDFC Bank's credit-to-deposit (CD) ratio has shown improvement, standing at 100.7% in Q2 FY25. Asset quality remains strong, with GNPA and NNPA at historically low levels. As the CD ratio normalizes, margins are expected to improve, enhancing valuation potential.

2. Life Insurance Corporation (LIC)

• CMP: ₹887.60

• Accumulation Range: ₹840–900

• Target: ₹1,045–1,160

LIC's focus on high-margin non-participating products has boosted its VONB margins, with individual APE contributions rising significantly. This strategic shift positions LIC for long-term profitability and growth in the evolving insurance market.

3. DLF

• CMP: ₹835.05

• Accumulation Range: ₹800–850

• Target: ₹960–1,050

With a robust launch pipeline worth ₹41,000 crore for FY2025 and a dominant position in Delhi-NCR real estate, DLF is well-placed to benefit from India’s surging residential demand. Expansion into high-growth markets like Mumbai and Goa further strengthens its growth outlook.

4. Samvardhana Motherson International Ltd

• CMP: ₹157.10

• Accumulation Range: ₹145–160

• Target: ₹175–195

The company’s $88 billion order book, supported by its diversification strategy (3CX10), mitigates concentration risks. With a focus on organic growth and strategic acquisitions, it remains a key player in the global automotive supply chain.

5. Amara Raja Energy and Mobility Ltd

• CMP: ₹1,219.70

• Accumulation Range: ₹1,080–1,200

• Target: ₹1,350–1,440

Amara Raja’s products cater to high-growth sectors like EV batteries, data centers, and 5G infrastructure. Its ongoing investments in giga cell plants and EV battery facilities position it for substantial growth in emerging markets.

6. Senco Gold Ltd

• CMP: ₹1,065.20

• Accumulation Range: ₹1,010–1,080

• Target: ₹1,200–1,330

Senco Gold’s expansion into new markets and its focus on lab-grown diamonds through its sub-brand, Sennes, reflect its commitment to innovation. With plans to open 18–20 new stores in FY25 and capitalize on reduced customs duties on gold imports, the company is poised for robust growth.

Final Thoughts

The Indian stock market’s performance in 2024 highlights its resilience amid global uncertainties. Looking ahead, 2025 promises to be a year of dynamic opportunities, driven by evolving global trends and domestic economic recovery. By focusing on high-quality stocks with strong fundamentals, investors can position themselves to capitalize on the growth potential in the coming year.

Disclaimer: The above recommendations are based on market analysis and are for informational purposes only. Investors should conduct their own research or consult a financial advisor before making investment decisions.