Even as benchmark indices like the Sensex and Nifty have managed to notch up returns of approximately 4 percent in calendar year 2025, Indian equity markets have remained volatile amid rising global trade tensions and domestic geopolitical concerns. The broader market has presented a mixed picture, with the Nifty Midcap 100 index gaining around 1.4 percent, while the Nifty Smallcap index has declined 2.7 percent year-to-date.
In this backdrop, domestic brokerage firm InCred Equities has released its latest list of stock ideas for June 2025. The firm has adopted a selective and risk-aware approach, recommending 21 stocks with an ‘Add’ rating and advising investors to trim exposure in three others.
Monsoon Outlook, GVA Growth Key Positives
According to InCred Equities, two macroeconomic indicators could offer near-term support to equity markets: a favourable monsoon forecast and robust GVA growth. The India Meteorological Department (IMD) has projected above-normal rainfall this year—106 percent of the long-period average—which bodes well for agriculture, rural demand, and consumer sentiment. While the southwest monsoon hit Kerala earlier than usual, further progress is expected to pause until June 10.
On the economic front, the National Statistical Office (NSO) reported a 6.8 percent year-on-year growth in real Gross Value Added (GVA) during Q4FY25—the fastest in the last four quarters. This was driven by strong agricultural performance, and InCred expects India’s GDP growth to maintain momentum with support from stable crude oil prices and improved rural prospects.
Corporate earnings also stayed on track. As per CMIE data, PAT for nearly 4,000 listed firms grew by 9 percent Y-o-Y in Q4FY25, mirroring the previous quarter’s performance. Meanwhile, Nifty50 companies posted a 5 percent Y-o-Y EPS growth, slightly surpassing Bloomberg consensus estimates.
June 2025 Stock Strategy: Largecaps, Midcaps, and Smallcaps
For June 2025, InCred Equities has provided a comprehensive segment-wise list of stock recommendations:
Largecap Picks:
The brokerage has suggested adding nine largecap stocks, including HDFC Bank, Tata Consultancy Services (TCS), and Bajaj Finance. Others include Maruti Suzuki, Axis Bank, UltraTech Cement, Bajaj Auto, Shriram Finance, and Lupin.
However, it has ‘reduce’ call on two largecaps due to valuation concerns and near-term headwinds – InterGlobe Aviation and Tata Steel.
Midcap Picks:
Four midcap stocks have been assigned an ‘Add’ rating, including Ajanta Pharma, Petronet LNG, Concor and UPL. Technical indicators also support UPL’s momentum in the current environment.
Smallcap Picks:
A more aggressive stance was taken in the smallcap space, with eight stocks receiving an ‘Add’ rating. Notable mentions include Birla Corporation, Ethos, and Skipper. However, Clean Science and Technology was downgraded to ‘Reduce’ based on fundamental pressures. Others include Deepak Fertilisers, Thyrocare Tech, TCPL packaging, Camlin Fine Sciences, and Globus Spirits.
Stock List Updates:
Camlin Fine Sciences was added to the list after signs of stabilization in its vanillin plant and the imposition of anti-dumping duties in the US, which are expected to improve its profitability outlook.
Adani Ports and Special Economic Zone was removed from the list as its market price neared InCred’s target, prompting a profit booking recommendation.
Cipla was also dropped due to margin pressure stemming from product mix-related issues.
Other technical trend-favoured stocks included UPL, Skipper, and Petronet LNG, where chart setups supported potential upside.
In conclusion, InCred Equities’ June 2025 strategy reflects a balanced stance amid macroeconomic positives and geopolitical uncertainties. The brokerage’s cautious optimism is shaped by early monsoon signals, strong GVA numbers, and steady earnings growth. With 21 stocks receiving an ‘Add’ rating and a preference for select opportunities across market capitalizations, the list aims to help investors navigate the current volatility while maintaining exposure to long-term growth stories. As global cues continue to influence domestic sentiment, stock selection and disciplined allocation remain key to portfolio outperformance.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
