BSE has shed 0.7% from February till now; if the losses continue, India’s indices will log a fifth straight monthly fall. Thus, the benchmark indices in 2025 have declined by over a percent due to the volatile economic environment of the world and higher valuations in India.
The broader markets have also reduced, and the Nifty Midcap index has fallen by more than 9 percent.
The FPI sell-off is expected to persist in the coming week as the weak sentiment moderately prevails after the tariff policies of US President Donald Trump. Another factor that contributed to the correction in the Indian equities is low corporate earnings. Overall, the condition of Q3 earnings was slightly better than the previous two quarters, but it remained unable to boost the confidence level of investors.
With reference to the long-term investment horizon, the following presents InCred’s high conviction stock ideas for the month of February in 2025 as mentioned above; Instead of chasing mid- and small-cap equities, Lcesd welcomes the new year of 2025 with a large-cap focus.
The firm anticipates an increase in personal income through the relief of income tax and has included Bajaj Auto and Marico on the suggested list. However, it is also expected that corporate earnings will decline and macroeconomic factors will continue to negatively affect Nifty-50 ret.
Stock Performance Overview
Thus, after September 2022, the stocks selected by InCred show both good and bad returns. Out of the above-mentioned companies, Skipper, Aditya Birla Sun Life AMC, and Bharat Forge have done nicely by returning more than Nifty, while Deepak Fertilisers and Petrochemicals Corporation is down by a mammoth 26.
New Additions To The List
New stock recommendations for the clients of InCred are announced to include the following in its list:
- Adani Ports and SEZ Company (ADD): The brokerage has favorable views of volume growth visibility and is recommending this stock after the company has depreciated by 23% in the last six months.
- Bajaj Auto (ADD): The firm notes that the company can sustain the EV impact on the EBITDA margin, given that the proportion of local EV sales has shifted from 3% in the second quarter of fiscal 2024 to almost 12% now.