UBS downgrades telecom stocks on cautious outlook
UBS downgraded Indus Towers to Sell with a target price of ₹395 and Bharti Airtel to Sell with a target of ₹1,800, while maintaining Neutral on Vodafone Idea with a target of ₹15. The brokerage maintained a cautious view on the sector amid difficult macro conditions and rising inflationary pressures. It believes consensus expectations of a mobile tariff hike in FY27 are at risk, with sector revenue growth slowing to around 8 per cent YoY in Q4FY26.
HSBC initiates coverage on IDFC First Bank
HSBC initiated coverage on IDFC First Bank with a Buy rating and target price of ₹90. IDFC First Bank is a play on multi-year high loan growth and operating leverage across business segments. Execution has been strong recently, with the brokerage seeing 35 per cent core PPOP CAGR in FY26-29e and ROA/ROE expansion. The bank is positioned to grow its loans by around 20 per cent CAGR over FY26-29e.
HSBC initiates Buy on Belrise Industries
HSBC initiated coverage on Belrise with a Buy rating and target price of ₹270. Belrise is moving into more advanced fabrication to cater to rising passenger and commercial vehicle needs. This strategy is supported by various recent acquisitions, and it is also diversifying into defence and aerospace segments. Simplification of its group structure should further enhance shareholder value.
Brokerages mixed on IndiGo after analyst day
Goldman Sachs maintained Buy on InterGlobe Aviation (IndiGo) with a target price of ₹5,300. JPMorgan kept Neutral with a target of ₹4,610, while Jefferies maintained Buy at ₹5,380 and Morgan Stanley kept Overweight with a target of ₹5,844. HSBC maintained Buy with a target of ₹5,545. Key highlights include single-digit capacity growth in FY27, international mix target of 40 per cent by FY30, and focus on yields amid cost pressures.
Jefferies on RBI’s FCNR-B and ECB measures
Jefferies noted that terms on FCNR-B and ECB raising are supportive. These measures can drive larger inflows of $50-70 billion versus $34 billion in 2013, with leverage being a key attraction.
Citi revises BoP forecast after RBI measures
Citi now expects a BoP surplus of $5 billion in FY27 after incorporating $10 billion from the OFCB route. It expects USDINR to move towards 93 in the short run. Relative beneficiary among equity financials is HDFC Bank, while government-owned NBFCs such as PFC, REC and IRFC gain direct hedging relief.
HSBC maintains Hold on Nestle India
HSBC maintained Hold on Nestle India with a target price of ₹1,450. The MPN segment clocked only 1 per cent YoY revenue growth in FY26, even as other segments delivered a robust year. Strong portfolio, but growth upgrades look difficult and valuations are steep.
HSBC holds Tata Motors PV with ₹450 target
HSBC maintained Hold on Tata Motors PV with a target price of ₹450. Multiple headwinds in FY26 saw JLR’s net debt position fall back to FY23 levels. It increased JLR margin estimates as it expects lower warranty costs in FY27 and onwards.
Jefferies positive on renewable energy demand
Jefferies reiterated Buy on Emmvee with a target of ₹360 and on Premier with a target of ₹1,135. Power demand rose double digits YoY in May, driven by cooling demand. Harsh summer, weak monsoon forecast and high probability of El Niño should sustain demand growth, supporting a pickup in renewable energy tendering in 2HFY27.
Jefferies maintains Hold on Infosys
Jefferies maintained Hold on Infosys with a target price of ₹1,235. It outlined the company’s strategy to evolve from tech implementer to a value orchestrator, with sharp rise in R&D spend reflecting focus on building AI capabilities.
Jefferies on utilities sector outlook
Jefferies noted demand improving with execution ramp-up to follow. Power demand in April-May 2026 has been strong at 7 per cent YoY. Top picks are JSW Energy, Adani Energy Solutions and NTPC. It raised targets for Adani Green Energy to ₹1,735, Adani Energy Solutions to ₹1,905 and JSW Energy to ₹745.
Jefferies upbeat on aerospace and defence
Jefferies highlighted FY26 order flow rose 9 per cent YoY for the coverage universe. It believes power equipment and defence remain the best way to play the sector. Top picks: Siemens Energy, Hitachi Energy, HAL, BEL, KEI and L&T.
Jefferies on electricals sector
Jefferies noted that a below-normal monsoon forecast for 2026 can benefit air conditioner companies. It estimated FY27 UCP sales of Voltas and Blue Star to grow by 15-16 per cent YoY.
MOSL initiates Buy on Gabriel India
MOSL initiated coverage on Gabriel India with a Buy rating and target price of ₹1,266. The company is transforming into a scalable mobility platform with a significantly larger growth runway. It estimated revenue/EBITDA/PAT CAGR of 22 per cent/23 per cent/55 per cent for FY26-FY28E.
Brokerages highlight EMS growth potential
JP Morgan noted exports outpaced domestic in FY26 for EMS companies, which could be the next frontier of growth. Dixon Tech remains its top pick.
Bernstein survey on Indian capital markets
Bernstein’s survey indicated markets are on the clock with domestic flows potentially weakening. Many investors plan to maintain or reassess SIPs, with flows for asset managers with higher reliance on direct-plan investors likely to be more volatile.
Nomura maintains positive stance on steel
Nomura maintained positive stance on the Indian steel sector. Domestic HRC prices moderated while rebar prices declined sharply. India remained a net importer in May 2026.
Nomura on Indian pharma April sales
Nomura’s April-IQVIA data showed ex gRevlimid, three-month sales for April 2026 rose the most for Zydus and declined the most for Lupin.
Nomura maintains Buy on Motherson Sumi Wiring
Nomura maintained Buy on Motherson Sumi Wiring with a target price of ₹50. Outlook remains healthy based on OEM production schedules.
UBS on apparel exporters amid Middle East conflict
UBS noted no demand shock for Indian apparel suppliers despite the Middle East conflict, with stable relationships and recovering utilisation. Sharp increase in raw material costs is creating margin pressure that suppliers are trying to pass on partially.
Elara initiates Buy on Bharti Airtel
Elara initiated Buy on Bharti Airtel with a target of ₹2,387, Buy on Bharti Hexacom at ₹1,756 and Accumulate on Indus Towers at ₹491. The sector is in multi-year recovery with expected ARPU CAGR accelerating to 7 per cent during FY26-29E.
Kotak maintains Buy on SBI
Kotak Institutional Equities maintained Buy on SBI with a fair value of ₹1,250. The brokerage highlighted steady execution with resilient RoE despite NIM pressures.
Citi maintains Neutral on Cognizant
Citi maintained Neutral on Cognizant with a target price of $55. Management highlighted growing TAM related to AI-based demand for enterprises.
Citi India equity strategy highlights key sectors
Citi reinforced its thesis on stocks including Axis Bank, ICICI Bank, M&M, Angel One, CG Power, Polycab, HUL, Torrent Pharma, GAIL and JSW Cement. Key overweight: financials, healthcare, defence and utilities. Key underweight: IT services, staples and metals. Nifty Dec’26 target is 27,000.
Axis Capital on equity supply trends
Axis Capital noted May equity supply landed at ₹344 billion. Equity supply is likely to remain weak in the near term with no major IPO planned for June.
Jefferies on emerging markets positioning
Jefferies observed EM returns have never been more concentrated. It still finds AI earnings robust but noted momentum as a style could be subdued.
