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Informist, Wednesday, Jun. 3, 2026

MUMBAI – ICICI Securities Ltd. has set a 12-month rolling target for the Nifty 50 at 28000 points and for Sensex at 93,000 points, it said in a report Wednesday. This implies a rise of nearly 20% for the Nifty 50 and 25% for Sensex over a year.

The brokerage is positive on domestic markets and expects "healthy double-digit" gains in the coming quarters, as it expects geopolitical tensions to ease. Trade deals with major developed economies and inexpensive valuations are expected to further support this growth, it said.

ICICI Securities does not see any material risk to the double-digit earnings growth of Nifty 50 companies and expects a 16% compounded annual growth rate for the next two years. Earnings growth over two years will be led by telecom sector due to better average revenue per user. This will be followed by the metal companies on higher prices of products and automobile companies as Jaguar Land Rover's operations are expected to improve.

ICICI Securities remains "selectively positive" on the information technology sector. "While valuations across IT services have turned relatively more supportive following the prolonged correction phase, near-term growth visibility remains uneven across players," it said. It expects a compounded annual growth rate of around 5% for the sector over two years.

The brokerage favours companies with superior execution of orders and stronger large-deal momentum. It also prefers companies such as Persistent Systems Ltd. and Coforge Ltd., which have artifical intelligence monetisation capabilities and resilient margins. It expects growth of tier-1 companies to remain moderate until discretionary spending and macro conditions improve meaningfully. Its top pick for the sector is LTM Ltd.

For the automotive sector, ICICI Securities prefers original equipment manufacturers over automobile ancillary companies as the former offers comfortable valuations and can absorb interim margin pressure. However, gross margins are expected to be under pressure in the near term due to a sharp rise in input costs such as of steel, aluminium, and natural rubber, among others. It expects a compounded annual growth rate of over 28% for the sector over two years. The brokerage's top pick of the sector is Mahindra & Mahindra Ltd.

ICICI Securities expects banks to witness some margin pressure due to competition in gathering deposits and implementation of the expected credit loss norms. The potential "second-order" impact of geopolitical uncertainties on micro, small, and medium enterprises should be monitored, it said. The brokerage's top pick among banks is Kotak Mahindra Bank.

For fast-moving consumer goods companies, the brokerage expects a compounded annual growth rate of nearly 10% over two years. These companies have given a resilient outlook for FY27 despite global uncertainties, a subpar outlook for monsoon due to El Nino, and an increase in commodity prices, it said. These companies are expected to perform better in the second half of FY27. ICICI Securities' top pick for the sector is Marico Ltd.  End

Reported by Ashutosh Pati

Edited by Akul Nishant Akhoury

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