Sensex & Nifty in 2025: Predictions, targets, must-have stocks for the new year

With Sensex and Nifty delivering positive annual returns for the ninth time in a row in 2024, an average of nine brokerage targets for 2025 shows that the Street is expecting a healthy double-digit return of over 16% in the new year despite all the concerns around FII selling, weak earnings, expensive valuations and geopolitical issues.

"We are constructive on markets and believe the recent correction offers a good entry point to start accumulation for long term wealth generation. With modest ~7% growth expectations in Nifty earnings for FY25E (on a high base), we expect Nifty to resume its double-digit earnings growth trajectory with earnings over FY25-27E expected to grow at a CAGR of 15%," Pankaj Pandey, Research Head, ICICIDirect, told ETMarkets.

He said earnings growth enablers would be pick-up in domestic GDP growth rate, decline in interest rates and continued growth supportive policy framework.


An ETMarkets poll of 17 brokerages and other market participants shows that almost all of them are bullish on equities and a majority 65% of them see Sensex crossing 90,000 by December 2025.

Sensex target for 2025

Sensex is ending 2025 with a gain of around 8% but global brokerage firm has given a target of 90,520 and Morgan Stanley has an even higher target of 93,000.

Stating that with strong earnings, macro stability and domestic flows, Morgan Stanley said it is hard to argue against India's investment case and that Dalal Street would be among the best performing emerging markets in 2025.

"In our base case, we assume continuation in India's gains in macro stability via fiscal consolidation, increased private investment and a positive gap between real growth and real rates. Robust domestic growth, no recession in the US and benign oil prices are also part of our assumptions," Morgan Stanley's Ridham Desai said.

Also read | Billion-dollar bruises in 2024! Reliance Industries among 27 stocks with highest drop in market value

Nifty target for 2025

When it comes to Nifty target, the average of 7 brokerage predictions comes to 27,140 with Bajaj Broking's 28,700 and ICICI Direct's 28,800 target being the highest ones for 2025.

Among global brokerages, Citi has given a target of 25,000, Goldman Sachs 27,000, BofA 26,500 and Jefferies 26,600 for Nifty in 2025.

"After strong EPS growth and market returns over the last four years, expectations are moderating for both. EPS growth has slowed to <10% in FY25 and we expect 13% in FY26/CY25. Domestic flows remain strong, but equity supply has caught up, capping market returns. Our Dec-25 Nifty target of 26,600 implies 10% total return," Mahesh Nandurkar of Jefferies said.

Bajaj Broking's multi-dimensional analysis using a bottom-up approach, market seasonality, DII flow, conventional charting methods and MSCI ratio indicates that bulls will dominate the new year with Nifty touching 28,700 over the next 12 months.

Stock picks for 2025

With current valuations offering limited scope for further expansion, Axis Securities said bottom-up stock picking with a focus on 'Growth at a Reasonable Price' and 'quality' would be keys to generating satisfactory returns in the next one year.

The brokerage's New Year picks for 2025 are Shriram Finance, Fortis Healthcare, Prestige Estates Projects, City Union Bank, Ambuja Cements, DOMS Industries, Ethos, Bharti Airtel and Cipla.

Motilal Oswal's top picks for 2025 - ICICI Bank, HCL Tech, L&T, Zomato, Polycab, Godrej Properties, Nippon Life AMC, IPCA Labs, Lemon Tree Hotels and PN Gadgil.

Jefferies has identified ICICI Bank, Axis Bank, SBI, Bharti Airtel, JSW Energy, TVS, Coal, Godrej Properties and Sun Pharma as their top picks.

Among mid and smallcaps, Prabhudas Lilladher has identified Aster DM Healthcare, Crompton Greaves Consumer, Cyient, DOMS Industries, Jindal Stainless, Lemon Tree Hotels, Safari Industries and Triveni Turbine.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)