ICICI Bank, Inox Wind, HCL Tech among 7 stock picks of Mirae Asset Capital Markets for 2025

After a volatile 2024, wherein the Indian stock markets' benchmark indices managed to close higher for the ninth straight year, the focus has shifted to the stocks and sectors that could emerge as winning bets in 2025.

According to Manish Jain, Director of the Institutional Business (Equity & FI) Division at Mirae Asset Capital Markets, sectors like IT, Auto, BFSI, and solar offer promising opportunities.

While FPI outflows and inflation risks linger, domestic flows and resilient consumption support the market, said Jain, adding that investors should stay patient and keep some cash in hand to seize potential dips in the coming months for long-term rewards.

Sectoral Outlook

Here's a look at the top sectors Manish Jain of Mirae Asset Capital Markets is bullish on:

1. IT sector

As we enter 2025, we believe that a few sectors and segments will outshine others, said Jain. These include IT, which would be the most favoured sector as of now. Trump's policies, lower taxes, and new trade tariffs will strengthen the dollar and the depreciating rupee could help the IT sector. DOGE will push for AI and digitisation. 

Nifty 50 IT weights have been near the bottom since 2011. Recovery in the BFSI segment and the US markets signals potential demand stabilisation.

2. Auto sector

In Auto, 2-wheelers and tractors are expected to lead because of rural market recovery, marriage-related spends, strong Kharif crop, and favourable Minimum Support Price. An increase in the traction of key industries like construction, mining, agriculture, and capex for infrastructure projects can be positive for the CV segment.

3. Banking, financial services and insurance (BFSI)

In BFSI, it’s time to look at non-lending businesses like Market Infrastructure, Wealth Management, Broking, Insurance etc. High demand for health insurance will continue to grow with economic growth. The consistent rise in Indian equity markets is attracting investors. Robust mutual fund flows and strong momentum in Demats will help these non-lending businesses.

4. Defence sector

In defence, despite a sharp rise in share prices of some of the companies, the sector can be looked at during dips. Supportive policies, export opportunities and rising local defence production can give a boost to the sector. Trump is expected to strengthen military capabilities through procurement or strategic alliances.

5. Power & solar sector

In Power and Solar, 500GW renewable energy capacity expansion, green energy corridor project, revamped distribution sector scheme (RDSS), solar parks, lifetime high order books and strong demand outlook are positive for solar, RE financers, power infrastructure, EPC players, smart meters, and T&D segments.

5. Healthcare sector

The capex theme is playing out for hospitals and diagnostics players. RoE expansion can take some time. Clearance of the Biosecure Act opens up meaningful growth opportunities for Indian CDMO players. US business of key pharma companies to benefit from easing pricing pressures on the generics, key product approvals and subsequent launches.

Stocks To Buy 

Key stock picks from the above-mentioned segments are as follows:

Auto - Endurance Technologies Ltd, UNO Minda Ltd

BFSI - Bank of Baroda and ICICI Bank

IT - HCL Technologies Ltd

Midcap - Inox Wind Energy Ltd

Pharma - Rainbow children

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.