The Indian stock market might be riding high, but according to global brokerage Macquarie, it’s not all sunshine and roses ahead. In a recent note, the firm warned that market earnings expectations are still too optimistic, and there’s a noticeable cool-off in domestic liquidity—a factor that’s been a key support for the rally so far.
Put simply, the party might slow down in the short term.
But it’s not all doom and gloom. While the brokerage remains cautious overall, it has also zeroed in on six Nifty stocks that it believes offer solid short-term upside — anywhere between 22% to 35% — over the next three to six months.
Let’s break down what’s behind Macquarie’s top picks and why they might be worth a closer look.
1. Shriram Finance: A Hidden Value Play
Market Cap: 1.23 lakh crore
Target Price: 800
Upside Potential: 22%
Shriram Finance is what Macquarie calls a “valuation catch-up” opportunity. It’s currently trading well below the valuation levels of some of its bigger rivals—by as much as 50-60%. But fundamentals are improving.
Why it looks promising:
- Better liquidity conditions
- Easing interest rates
- Stable asset quality
Outperforming its peers in growth.
If you’re looking for a stock that’s under the radar but quietly gaining strength, Shriram Finance could be it.
2. Bharat Electronics (BEL): Riding the Defence and Export Wave
Market Cap: 2.04 lakh crore
Target Price: 350
Upside Potential: 25%
BEL has been on investors’ watchlists thanks to a strong order book and increasing export opportunities. Macquarie believes its earnings growth is only just getting started.
What’s working in its favor:
- Confident guidance expected from management
- Growing international orders
- FY25 and beyond should see a strong trend in EPS growth.
If defence and electronics is your theme, this stock might be a core pick.
3. Reliance Industries (RIL): A Slow Burner Set to Heat Up
Market Cap: 16.3 lakh crore
Target Price: 1,500
Upside Potential: 24%
Reliance hasn’t been the star performer recently, and that’s mostly due to softer numbers from its retail segment and flat growth. But Macquarie believes the next 6–12 months could tell a different story.
What could turn the tide:
- Renewable energy projects going live
- Retail business spin-off progress
- Better-than-expected EPS turnaround
And if retail revenues start picking up again? That could be a major sentiment booster for the stock.
4. Wipro: Undervalued and Ready to Catch Up
Market Cap: 2.57 lakh crore
Target Price: 320
Upside Potential: 30%
Among IT majors, Wipro hasn’t had the easiest ride. But Macquarie sees it as a catch-up story with strong fundamentals. It’s backed by a solid cash position and a shareholder-friendly dividend policy.
Why it could surprise you:
- 5–6% dividend yield expected in the next year
- Growth may align with top-tier IT peers by FY26
- Valuations still look attractive
Wipro might just offer that rare mix of income and upside potential, especially if growth estimates start shifting upward.
5. Tata Motors: Oversold and Overdue for a Bounce
Market Cap: 2.25 lakh crore
Target Price: 826
Upside Potential: 34%
Tata Motors has taken a bit of a beating lately, thanks to concerns over Jaguar Land Rover’s (JLR) performance in the U.S. But Macquarie thinks the sell-off is overdone.
What makes it interesting now:
- JLR could turn net cash positive in FY25
- Tata Motors is pushing for premiumisation
- Possibility of better margins and cash flows in FY26
In other words, the fundamentals are intact—and the market may have overreacted.
6. NTPC: Powering Ahead with Renewables and Nuclear
Market Cap: 3.4 lakh crore
Target Price: 475
Upside Potential: 35%
NTPC is Macquarie’s most bullish pick from this list—and for good reason. The brokerage believes the ongoing heatwave might not hurt earnings directly, but it does underscore the need for more power capacity in the country.
Key triggers:
- Demand for base-load power is rising
- Renewables and nuclear capacity expansion plans could boost confidence
- By FY28, NTPC wants to install 10 GW of renewable energy.
- Clarity on nuclear energy initiatives expected soon
The company’s strategy positions it well for long-term value creation, especially in a market pivoting to cleaner energy.
Bottom Line:
While Macquarie is sounding a note of caution on the broader market, it’s also pointing out that opportunities still exist — especially in stocks with strong fundamentals, improving outlooks, and realistic valuations.
For investors with a short- to medium-term horizon, these six picks offer a compelling mix of value, momentum, and growth potential.
As always, don’t forget to do your own research or consult a financial advisor before making any investment decisions.
