Stocks to buy in December: Buy these 16 shares for up to 46% return in 12 months

The markets have been witnessing volatile trading sessions and have corrected significantly in the last one month. The broader Nifty alone corrected 3.90 per cent in November, the biggest monthly decline since March 2020, as per the Zee Business Tv report. Similarly, in the last one month, including December 1, the S&P BSE Sensex declined 4.1 per cent as per Stock Edge, an app to analyse NSE, BSE data.  

Meanwhile, Axis Securities has maintained its December target for broader Nifty. "Considering the strong earnings trajectory, we maintain our December'21 NIFTY50 target of 20200, valuing it at 22x FY24E earnings," it said in its report.

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As the volatility has been making it difficult for investors to select stocks, Axis Securities in its December 2021 picks has identified 16 stocks from the large-cap, midcap and small-cap segments that could give good returns in 12 months.  

While identifying these stocks, the brokerage said long-term prospects remain constructive despite challenges. It said global developments may pose short-term challenges, however, the earnings scenario remains constructive.    

"Momentum theme has seen good traction in the recent months, followed by value and Quality themes.  Growth has continued to lag which presents a very curious case. Value, over a slightly longer time horizon, continues to be a robust theme, while we believe Quality theme may outperform from the current levels considering a notable market correction and significantly increased volatility in the last three months.  While Large caps have outperformed Small and Mid-Caps in the last 3 months, value seems to be emerging in the Small and Mid-Cap stocks, providing attractive investment opportunities," the report highlighted.  

Based on its research, Axis Securities shortlisted ICICI Bank, HCL Technologies, Bajaj Auto, Tech Mahindra, Maruti Suzuki India, State Bank of India, Bharti Airtel, Federal Bank, Dalmia Bharat, Varun Beverages, Navin Fluorine International, Ashok Leyland, Krishna Institute of Medical Sciences, Equitas Small Finance Bank, Mold-Tek Packaging and Amber Enterprises India.

These stocks have been shortlisted from the Large Cap, Mid Cap and Small Cap segments.  

ICICI Bank, HCL Technologies, Bajaj Auto, Tech Mahindra, Maruti Suzuki India, State Bank of India and Bharti Airtel were top picks from the Large Cap category, while it identified Federal Bank, Dalmia Bharat, Varun Beverages, Navin Fluorine International, Ashok Leyland as his Mid Cap stocks for December. KIMS, Equitas Small Finance Bank and Mold-Tek Packaging and Amber Enterprises India were picked from Mid Cap segment.