Thu Jan 02 04:50:00 UTC 2025: ## Nifty 25,000 Target Unlikely in 2025, Says IIFL Securities

**MUMBAI** – IIFL Securities has issued a cautious outlook for the Indian stock market in 2025, predicting that the Nifty index is unlikely to reach the 25,000 mark. The brokerage firm cites a confluence of negative factors – rising US bond yields, a weakening rupee, slowing economic growth, and high valuations – as headwinds. These, they claim, act like “liquid” that prevents market growth.

However, IIFL also points to mitigating factors, including soft commodity prices and cooling inflation, which they liken to “oxygen” preventing a significant market downturn. This balance of positive and negative influences leads them to forecast a more modest Nifty target of 22,500 by the end of the fiscal year 2026.

Despite the overall cautious outlook, IIFL remains overweight on several sectors. Their top picks include IT (particularly Infosys, anticipating a positive shift in US discretionary spending by Q2 2025), hospitals, domestic pharmaceutical companies, auto four-wheelers, power transmission & distribution, real estate, cement and construction. Specific recommendations include UltraTech Cement in cement, DLF in real estate, Torrent Pharma and Apollo Hospitals in healthcare, and Maruti Suzuki in the auto sector (citing a recent correction and low commodity prices). They also highlight Apollo Tyres’ strong position in the replacement market and predict that HDFC Bank and ICICI Bank will deliver strong earnings growth.

Conversely, IIFL issued sell recommendations for Dr Reddy’s (due to pipeline concerns) and Biocon (due to pricing and demand challenges). They also warned of further derating for Eicher Motors due to poor growth and falling profitability. The brokerage expects INR depreciation to benefit US-focused pharmaceutical companies, with Lupin being their preferred choice in this segment.

Read More