Markets extended their winning streak on Friday, supported by encouraging quarterly business updates. The Nifty strengthened its bullish structure by surpassing the 200-day EMA around the 24,370 mark, positioning for further gains. The index now appears well-positioned to inch towards the 24,600 level, which coincides with the previous swing high, and a decisive breakout above this zone could open the door for a move towards the 24,800-25,000 mark. In today's trade, shares of Maruti Suzuki, ITC, ZEE, Persistent Systems, and Muthoot Finance among others will be in focus due to various news developments and first quarter results.
Morgan Stanley has issued fresh recommendations across multiple sectors, maintaining 'Overweight' ratings for Aditya Birla Capital with a target price of ₹462 (upgraded from ₹450) and Muthoot Finance with a target of ₹3,705. The brokerage also maintains 'Equal-Weight' ratings for ITC at ₹340 and Coal India at ₹420. Meanwhile, Citi has upgraded Tata Steel to 'Buy' from 'Accumulate' with a target of ₹235, while Goldman Sachs has maintained a 'Sell' rating for Dixon Technologies with a target price of ₹10,980 (increased from ₹10,025).
The steel sector shows mixed brokerage sentiment with Elara Capital upgrading Tata Steel to 'Buy' from 'Accumulate' with a target price of ₹235 (earlier ₹243), while Goldman Sachs maintains a 'Neutral' rating at ₹215 (previously ₹128). Citi continues to maintain a 'Sell' rating at ₹175 (earlier ₹200). Morgan Stanley has maintained its 'Overweight' rating for Tata Steel at ₹235. However, HDFC Securities has taken a more bullish stance, reiterating its 'Buy' rating on Tata Steel with a target price of ₹250, citing a 16-quarter-high consolidated Ebitda margin in Q1 FY27 driven by strong pricing gains and robust domestic demand. The brokerage expects cost savings to accelerate in the second half of FY27, supporting earnings growth. Nomura has retained its positive stance on the India steel sector and its 'Buy' ratings on Tata Steel, JSW Steel, Jindal Steel and Lloyds Metals, saying domestic steelmakers are well placed to benefit from recent price hikes. The price increases implemented in late 4QFY26 and through 1QFY27 are 'more than sufficient to absorb any cost inflation arising from the West Asia crisis'. India's rebar prices rebounded ₹2,150 per tonne week-on-week to ₹50,450 per tonne in the week ended July 31, snapping a three-month losing streak, while HRC prices declined marginally by ₹100 per tonne to ₹57,700 per tonne. The domestic flat-long spread remained positive at more than ₹7,250 per tonne, while HRC spot margins stood at around ₹34,720 per tonne in July. Input costs also remained supportive, with imported coking coal prices declining $3 per tonne week-on-week to $221 per tonne and iron ore prices falling $3 per tonne to around $90 per tonne.
Maruti Suzuki India receives consistent positive coverage with Motilal Oswal Financial Services maintaining a 'Buy' rating at ₹17,064 and Morgan Stanley issuing an 'Overweight' rating at ₹16,381. Citi has maintained its 'Buy' rating at ₹16,500 (revised down from ₹18,500). The automotive sector also sees Goldman Sachs maintaining 'Buy' ratings for Kajaria Ceramics at ₹1,350 and Pricol at ₹870. Morgan Stanley has upgraded Urban Company to 'Overweight' from 'Underweight' at ₹165.
ITC reported a net profit drop while revenue rose, and Maruti Suzuki saw a net profit decline in recent quarterly results. However, Sun Pharma reported net profit growth, providing positive momentum for the pharmaceutical sector. PNB has announced no immediate plans to monetize subsidiaries, clarifying its strategic direction. These mixed earnings results reflect the varied performance across different sectors, with the market focusing on companies that demonstrate resilience and growth potential. Citi has reiterated its bullish stance on Sun Pharma, citing strength in its speciality business and improving traction for new launches. Meanwhile, HDFC Securities maintained a 'Reduce' rating on Dixon Technologies despite raising its target price to ₹12,660, noting that the expiry of the PLI 1.0 scheme hurt margins, while current valuations remain demanding despite long-term growth opportunities from display manufacturing, exports and the Vivo joint venture. Nomura flagged continued weakness in China's property market as a concern, noting that contract sales by the top 100 developers declined 18.3% year-on-year in July, worsening from a 9.6% decline in June, with persistent weakness in the broader property sector likely to keep construction steel demand subdued. On US trade measures, Nomura noted that steel, aluminium, copper, auto components and certain derivative products remain subject to Section 232 tariffs of 25% or 50%, in addition to normal MFN duties, though metal exports to the US represent only a small share of India's overall exports, limiting the impact on domestic steelmakers.
