According to global brokerage Macquarie, current market earnings projections remain overly optimistic. The firm also noted a slowdown in domestic liquidity, which has so far played a significant role in propping up the markets. As a result, Macquarie anticipates that the market’s strength may face challenges in the near term. Despite this cautious outlook, it has identified six Nifty stocks as short-term tactical investment opportunities for the next three to six months.
Following are the six stocks picked by Macquarie with up to 35percent potential upside:
1. Shriram Finance Limited
With a market cap of Rs. 1.23 lakh crores, the stock moved up by nearly 2 percent on Friday, after Macquarie has recommended a target price of Rs. 800 per share on Shriram Finance, representing a potential upside of nearly 22 percent from its Friday closing price of Rs. 654.15.
2. Bharat Electronics Limited
Macquarie anticipates robust guidance from the management for the upcoming financial year. Additionally, growing export prospects are expected to support a stronger earnings per share (EPS) growth trend over the medium term.
With a market cap of Rs. 2.04 lakh crores, the stock moved up by nearly 3.4 percent on Friday, after Macquarie has recommended a target price of Rs. 350 per share on BEL, representing a potential upside of nearly 25 percent from its Friday closing price of Rs. 280.1.
3. Reliance Industries Limited
With a market cap of Rs. 16.3 lakh crores, the stock moved up by nearly 4.4 percent on Friday, after Macquarie set a target price of Rs. 1,500 per share on RIL, representing a potential upside of nearly 24 percent from its Friday closing price of Rs. 1,204.7. Macquarie attributed the stock’s recent underperformance to downward revisions in earnings estimates, a softer performance in the retail segment, and stagnant consolidated earnings growth.
However, it remains optimistic about the next 6 to 12 months, citing potential positive developments. These include an expected turnaround in group EPS, the commissioning of renewable energy projects, and further advancements toward the retail business spin-off. Brokerage added that a pickup in retail revenue growth would serve as a strong sentiment booster for the stock.
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4. Wipro Limited
With a market cap of Rs. 2.57 lakh crores, the stock moved up by nearly 3.7 percent on Friday, after Macquarie has recommended a target price of Rs. 320 per share on Wipro, representing a potential upside of nearly 30 percent from its Friday closing price of Rs. 246.25.
Brokerage noted that Wipro could offer greater shareholder returns, supported by its strong cash position, even after the new capital allocation policy. Macquarie estimates that the company could deliver a dividend yield of around 5 percent to 6 percent over the next one year, providing a cushion against downside risk.
An additional catalyst for the stock could be its growth aligning with that of other large-cap IT firms by the first quarter of FY26—a scenario Macquarie believes is not yet reflected in current buy-side forecasts.
With a market cap of Rs. 2.25 lakh crores, the stock moved up by nearly 6.7 percent on Friday, after Macquarie set a target price of Rs. 826 per share on Tata Motors, representing a potential upside of nearly 34 percent from its Friday closing price of Rs. 613.85.
Macquarie believes Tata Motors shares are currently in an oversold zone, with recent underperformance largely attributed to concerns over volume and margin pressures in Jaguar Land Rover’s U.S. operations.
However, the brokerage remains optimistic, pointing to JLR potentially turning net cash positive in FY25, the company’s focus on premiumisation, and the possibility of better-than-expected margins and cash flows in FY26 as key factors supporting a more favorable short-term outlook.
6. NTPC Limited
Regarding NTPC, Macquarie stated that the Indian Meteorological Department’s (IMD) heatwave warning is unlikely to have a significant impact on short-term earnings. However, it strengthens the case for power-based capacity additions in the long run.
The brokerage also noted that management providing further clarity on plans for nuclear power capacity could reinforce investor confidence in the company’s long-term growth prospects.
With a market cap of Rs. 3.4 lakh crores, the stock moved up by nearly 3 percent on Friday, after Macquarie set a target price of Rs. 475 per share on NTPC, representing a potential upside of nearly 35 percent from its Friday closing price of Rs. 350.85.
Written by Ashok Kumar