Axis Bank Among Top Picks for 2027: Phillip Capital Sees Nifty Target Range of 26,500-27,500

Phillip Capital Sees Opportunities in Indian Equities Amid Geopolitical Uncertainty

Key Highlights:

• Phillip Capital maintains a constructive stance on Indian equities, despite escalating tensions between the US, Israel, and Iran, which may impact crude prices and global energy supply.
• The brokerage believes the current correction presents attractive entry opportunities for long-term investors and recommends accumulating quality stocks.

Top Picks:

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• Larsen & Toubro (L&T)
• Schneider Electric
• Hindustan Aeronautics (HAL)
• Bharat Electronics (BEL)
• JK Cement
• Ultratech Cement
• Amber Enterprises
• MTAR Technologies
• Coforge
• Hindalco
• Tata Steel
• Axis Bank
• Titan Company
• Ashok Leyland
• Lumax Auto

Market Outlook:

• Phillip Capital expects corporate earnings growth to drive market performance over the next two years, with a forecasted Nifty earnings growth of 5% in FY26, followed by 17% in FY27 and 14% in FY28.
• The brokerage assigns a valuation multiple of 19.0–19.5 times forward earnings, implying a Nifty target range of 26,500–27,500 by March 2027.

Scenarios:

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• Bear case: Nifty could trade between 23,760 and 24,975, assuming FY28 earnings per share (EPS) of 1,320–1,350 and valuations of 18–18.5 times.
• Base case: Nifty could reach 26,220–27,690, based on FY28 EPS of 1,380–1,420 and valuations of 19–19.5 times.
• Bull case: Nifty could climb to 28,600–29,725, assuming FY28 EPS of 1,430–1,450 and valuation multiples of 20–20.5 times.

Sectoral Outlook:

• Capital goods is expected to remain the best-performing segment, followed by defence, cement, automobiles, and NBFCs.
• Banks and FMCG are expected to see earnings growth improvement in FY27-FY28, while the IT sector may face earnings downgrades and pharma earnings are expected to remain weak in FY27.