Looking to invest in stocks in 2025? 9 picks for your portfolio this New Year

As we step into 2025, many investors are looking for good stocks to add to their investment portfolio. Stock markets have proven to be a good place to invest and grow money over the long term, as shown by the market’s performance in recent years.

The year 2024 has been decent for Indian stock markets. Both key market indices – the NSE Nifty 50 and the S&P BSE Sensex – went up by 9% during the year. This marks their ninth straight year of making money for investors. The Sensex reached its all-time high at 85,978 points, while the Nifty touched 26,277 on September 27, 2024.

What’s really worth noting is how well the smaller and medium-sized company stocks did. In the last five years, mid-cap stocks shot up by 234% and small-cap stocks rose by 221%. This shows that investors who picked these stocks made much more money than those who stuck to just big company stocks.

Looking ahead to 2025, Axis Securities Limited has shared their top nine stock picks in a report.

Their top pick is Shriram Finance Ltd, trading at Rs 2,930 (at the time the report was being curated). They think it can go up to Rs 3,825, which means it could grow by 31%.

Second on their list is Fortis Healthcare Ltd. The stock cost Rs 672 (at the time the report was being curated), and they expect it to reach Rs 860, giving a possible gain of 28%.

Third is Prestige Estates Projects Ltd, at Rs 1,748 (at the time the report was being curated). They predict it will rise to Rs 2,195, offering a 26% return.

City Union Bank Ltd came in fourth, at Rs 174 (at the time the report was being curated). The target price is Rs 215, suggesting a 24% upside.

Fifth is Ambuja Cements Ltd, trading at Rs 550 (at the time the report was being curated). They expect it to hit Rs 675, giving investors a 23% return.

DOMS Industries Ltd is sixth on the list. At Rs 2,553 (at the time the report was being curated), they think it could reach Rs 3,120, offering a 22% gain.

Seventh is Ethos Ltd, currently at Rs 3,112 (at the time the report was being curated). Their target price is Rs 3,750, suggesting a 21% rise.

Bharti Airtel Ltd is eighth, trading at Rs 1,600 (at the time the report was being curated). They expect it to reach Rs 1,880, giving an 18% return.

Last but not least is Cipla Ltd, at Rs 1,489 (at the time the report was being curated). They think it could go up to Rs 1,735, offering a 17% gain.

Axis Securities is quite hopeful about India’s growth in 2025. They say India’s economy is doing better than other growing countries and should keep doing well.

“Nifty 50 EPS is projected to grow by 7.6% in FY25, with growth expected to accelerate to 13.7% in FY26 and 11% in FY27, reflecting a robust 14% CAGR over the FY23–27 period. This growth will be supported by the real estate cycle, private capex recovery, and strong
construction activity during this period. Risks include global macro uncertainties, inflation pressures, and potential earnings downgrades post-Q3,” Axis Securities said.

However, they say investors should keep an eye on a few things in 2025: what happens in US government policies after Doanld Trump takes oath as President, any changes in trade rules between countries, whether the US central bank cuts interest rates, and how oil prices and currency rates move.

In India, they suggest watching for the upcoming budget and possible interest rate cuts by the Reserve Bank of India.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)