According to reports from The Economic Times, brokerages remain selective on large-cap and financial stocks, with a clear tilt towards companies where earnings visibility and execution are expected to improve over time. Goldman Sachs maintains a buy rating on Reliance Industries Ltd, citing a likely recovery in refining and chemicals operations. Meanwhile, Elara Capital has taken a more nuanced stance on lenders, upgrading IndusInd Bank while downgrading DCB Bank due to structural return constraints. The latest developments show Axis Bank shares falling 5% after reporting mixed Q4FY26 results, reflecting the selective nature of current brokerage recommendations across the banking sector.
As reported by The Economic Times, Goldman Sachs remains constructive on Reliance Industries Ltd, specifically citing a likely recovery in refining and chemicals operations. The brokerage's positive stance reflects confidence in the company's diversified business model and potential improvements in key operational segments.
According to The Hindu BusinessLine, Anand Rathi Research has upgraded DCB Bank to Buy with a target price of ₹272 against the current market price of ₹190.90. The upgrade is based on DCB Bank's strong Q4FY26 performance, which showed balance sheet growth above system levels with deposits up 20.9% year-on-year and loans up 17.6%. The bank demonstrated significant improvement in asset quality with net slippages turning negative at -21 basis points compared to 45 basis points in Q3FY26, while gross slippages (ex-gold) declined to 1.5% with broad-based improvement across segments. Credit growth was led by strong traction in gold (72.9%), corporate (54.7%), and agriculture (19.6%), with management guiding for 18-20% growth in FY27.
According to the report, Elara Capital has taken a more nuanced approach to banking stocks, upgrading IndusInd Bank while downgrading DCB Bank. The downgrade of DCB Bank is attributed to structural return constraints that limit the bank's ability to generate adequate returns on its assets. Meanwhile, Axis Bank shares tumbled 5% after reporting a marginal decline in net profit to ₹7,071 crore for Q4FY26, with both interest income and expenses rising 4.7% year-on-year, highlighting the selective nature of current brokerage recommendations in the banking sector.
As reported by The Economic Times, analysts highlight improving earnings visibility, margin normalisation and asset quality trends as key drivers for potential rerating across sectors despite near-term pressures. This suggests that while current market conditions may present challenges, fundamental improvements in corporate performance metrics could drive future stock performance improvements. The latest market data shows mixed performance across sectors, with some stocks like IRCTC gaining 43.6% while others face pressure from quarterly results.
