Nifty target ranges from a 1,000 point fall to 12% upside, Nomura says with portfolio changes

The Nifty 50 index is likely to trade in a range of 21,800 – 25,700 in 2025, according to brokerage firm Nomura in its latest note. The target range implies a potential downside of 5% from current levels on the lower end to an upside of 12% on the higher end.

Nomura has based its Nifty target for the end of the year valuing the index between 17 times to 20 times December 2026 forward earnings.

“We recommend being highly selective and avoiding richly valued stocks,” Nomura’s Saion Mukherjee wrote in the note.

Nomura is overweight on financial, consumer staples, FMCG, Oil and Gas, Telecom, Power, Pharma, Internet and Real Estate sectors. On the flip side, the brokerage is “underweight” on consumer discretionary, autos, capital goods, cement, hospitals, and metals.The brokerage has also made its changes to its preferred stocks portfolio. It has added Axis Bank to the portfolio, while Hyundai Motor India, Nippon India AMC and GE Vernova T&D have been removed from the portfolio.

Among the least preferred stocks, Nomura has added Voltas and ABB India to the list, while Maruti Suzuki and Havells have been removed from that list.

The Nifty 50 index has corrected 12% from its all-time high level of 26,277, while the Nifty Midcap and Nifty Smallcap indices have seen a bigger correction from their respective highs.