Mkt volatility to stabilise in Q4: PL Capital

Hyderabad: PL Capital- PrabhudasLilladher, a leading financial services firm, in its latest India Strategy Report ‘Recovery in Sight, Challenges Remain’, has highlighted that domestic consumption is on the verge of recovery, with a normal monsoon expected to provide a significant boost. The firm expects market volatility in the near term, stabilizing by Q4CY25, while FPI flows could turn positive, driven by increased capex, tax cuts, and improving consumer demand. The 12-month NIFTY target is set at 25,689.

PL Capital foresees a gradual recovery in domestic demand as food inflation falls (from 10.9% in October 2024 to 6%) and anticipates a 25bps RBI repo rate cut within 3-6 months. The Rs1 lakh crore income tax cut and a 17% rise in government capex will further fuel consumption. The firm remains overweight on consumer stocks, banks, and healthcare, adding Cipla and Astral Poly while increasing exposure to Maruti Suzuki, ICICI Bank, and Bharti Airtel.