Despite Market Challenges, BNP Paribas Predicts Up to 70% Profit in Select Indian Stocks Ahead.

The current situation in the stock market has been quite turbulent, especially in Sri Lanka. However, major brokerage firms are still optimistic about certain shares, with potential profits soaring up to 70%. Despite the challenges faced in both global and local markets, there’s a silver lining for investors looking towards the Indian stock market. Notably, BNP Paribas Securities has suggested that the NSE Nifty 50 index could reach 25,500 by the end of 2025, which would represent a 10% increase from its present levels.

Recently, both the Nifty and Sensex indices have experienced a significant decline of roughly 12% since they hit their all-time highs in September 2024. While the Sensex has dropped from 85,978 to 75,838, the Nifty has also seen an 11% loss. The primary reasons attributed to this downturn include rising American bond yields, a strong dollar, and foreign investors pulling out of emerging markets. Thankfully, domestic institutional investors have somewhat mitigated the effects of these sell-offs, providing a bit of stability in the market.

In this fluctuating environment, BNP Paribas has identified several sectors that show strong growth potential. They recommend focusing on private banks, the IT sector, telecom, and consumer discretionary sectors. For banks, the outlook is positive due to strong earning growth expected for FY26 and stable credit costs. The IT sector is also set for a more favorable macro environment compared to the past two years. Meanwhile, the telecom sector is predicted to see improvements in free cash flow, and there is a particular focus on affluent consumer spending, while mass consumption tends to look less appealing.

Several stocks are expected to yield impressive returns in the near future. For instance, SBI Life Insurance has estimates suggesting gains of up to 70%, with a target price of ₹2,500. HDFC Bank may see potential gains of 56%, while Axis Bank is projected for a 52% increase. Other notable mentions include Ester DM Healthcare with a 50% possible gain, Maruti Suzuki at 44%, and Bajaj Finance with a potential 40% increase. Companies like Reliance Industries and L&T are also looking at a possible 33% edge, and Havells could see a gain of about 30%. Despite these promising forecasts, caution is advised, especially in the pharma and metal sectors, due to their current market challenges.