Indian equities extended their rally for a fourth straight session on Tuesday, with Nifty 50 rising 370.05 points (1.58%) to close at 23,810.85 and Sensex jumping 1,225.07 points (1.62%) to settle at 76,917.85. The sustained market momentum has prompted fresh brokerage recommendations across multiple sectors, as foreign investors bought about ₹3,115 crore of Indian shares on Monday, adding to the positive sentiment. Brent crude slipped to around $105 a barrel, about 11% below Friday's six-month high of $118, on optimism over diplomatic efforts to end the Iran conflict, providing additional support to market sentiment.
HDFC Securities maintained its Buy rating on SBI while raising the target price to ₹1,270 from ₹1,245, citing healthy loan growth and improving asset quality. The brokerage firm retained its Add rating on BEL with the target price increased to ₹480 from ₹440 on the back of strong execution and a robust order pipeline. Bajaj Finserv remained a Buy with the target price trimmed to ₹2,175 from ₹2,361, while Max Healthcare's rating was maintained at Add with the target price cut to ₹1,000 from ₹1,110. Petronet LNG retained a Reduce rating but the target price was raised to ₹288 from ₹280. The banking sector upgrades reflect confidence in rising interest rates and surplus liquidity deployment supporting domestic NIM above 3%.
BEL received multiple positive ratings with Citi maintaining BUY at ₹515, HDFC Securities maintaining ADD at ₹480, and Nuvama maintaining BUY at ₹300 (raised from ₹283). Kotak maintains Add at ₹420 while UBS hikes target price to ₹500. The defence sector momentum is driven by retained FY27 revenue growth guidance of 15%+ and order inflow guidance of ₹55,000 crore. Jefferies expects ₹30,000 crore QRSAM order by March 2027, while UBS highlights QRSAM orders of nearly ₹30,000 crore and Next Generation Corvette orders exceeding ₹20,000 crore as key catalysts. Citi retains FY27 revenue growth guidance of 15%+ and order inflow target above ₹25,000 crore, excluding QRSAM.
Emcure Pharma received upgraded ratings with Jefferies maintaining Buy and hiking target price to ₹2,500 from ₹2,320, while Kotak maintains Buy at ₹2,450. Jefferies hikes FY27 revenue growth guidance to over 20% from mid-teens and targets 100 bps margin improvement. Kotak hikes FY27 sales growth guidance to over 20% from mid-teens and expects 19% EPS CAGR over FY26–29. Neuland Labs received upgraded ratings with Goldman Sachs maintaining BUY and hiking target price to ₹25,275 from ₹24,675. Goldman Sachs retains medium-term growth aspiration of around 20% despite uneven commercial CMS ordering, with late-stage projects including peptides strengthening development pipeline.
Power Grid received multiple positive ratings with Citi maintaining BUY at ₹335 (cut from ₹360) and Nuvama upgrading to BUY at ₹300 (raised from ₹283). Jefferies hikes FY27 capex guidance to ₹37,000–40,000 crore and cuts capitalisation guidance to ₹25,000–30,000 crore. Citi hikes FY27 capex guidance to ₹37,000–40,000 crore and cuts capitalisation guidance to ₹25,000–30,000 crore. Projects worth ₹2.2 lakh crore under execution and ₹67,200 crore bidding pipeline support visibility. Adani Ports & SEZ maintained its Buy rating with an unchanged target of ₹2,150 according to Nomura, while GAIL received a target price increase to ₹210 from ₹195 by Nomura. Petronet LNG also retained its Buy rating with an unchanged target of ₹345.
Based on HDFC Securities' target prices and closing prices, Eureka Forbes offers the highest potential upside of about 67% among the covered stocks, followed by SBI with 35% and BEL with 30%. KEC International's target price implies a potential upside of 19%. The brokerage firm retained its Add rating on KEC International while the target price was reduced sharply to ₹422 from ₹534. Happiest Minds maintained Add with a lowered target price of ₹345 from ₹360, while Kolte-Patil Developers remained a Buy with an unchanged target price of ₹524. Breadth remained positive with 2,127 stocks advancing, 1,477 stocks declining, and 109 remaining unchanged, indicating healthy market participation across sectors as Indian Markets Turning Corner After Two Tough Years according to market experts.
