Nomura ups FY14 Sensex target; check out its top 5 picks

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Brokerage house Nomura has raised its Sensex target for the current financial year to 22,000 from 20,000 earlier. But Nomura analysts Prabhat Awasthi, Nipun Prem and Sanjay Kadam have cautioned clients potential upside in the market is not big, and that risk-reward ratio is at best neutral.

"There is a reasonable chance that inflation might surprise positively in coming quarters. We think food inflation is close to its peak at current levels," says the Nomura note.

Also Read: Goldman ups Nifty target to 6900; bullish on midcap infra

The brokerage is betting on private banks as a play on inflation surprise and as a hedge against a potential temporary growth uptick.

"We consider private banks to be a good hedge against a potential temporary uptick in growth in the near-term on the back of higher farm output. However, our core view remains that a meaningful growth revival has to be underpinned by the investment cycle, signs of which are not visible yet," the Nomura note says.

Nomura has replaced HDFC Bank with IDFC and add Axis Bank in its strategy 'long-only' basket. It has replace Dr Reddy's with ICICI Bank in its list of top five stock ideas.

Nomura's top five strategy picks are now ICICI Bank, HCL Technologies, Reliance Industries, Tata Steel and NTPC.