The Indian stock markets closed higher on Monday, May 4, 2026, with the 30-stock Sensex finishing 356 points or 0.46% higher at 77,269.40 and the Nifty 50 rising 122 points to close at 24,119.30. However, market sentiment may turn cautious as GIFT Nifty signals a softer opening with the index hovering around 23,032, down about 11.50 points from the previous Nifty futures close. Key stocks in focus include Tata Technologies, IndiGo, Manappuram, Delhivery, Jindal Stainless, KEI, and Wockhardt, while major companies like L&T, M&M, Hero MotoCorp, and Coforge await their Q4 results. The markets held gains but witnessed profit booking at higher levels, trimming early gains by the close.
Despite the initial market reaction, ICICI Securities has maintained its buy rating on Kotak Mahindra Bank with a revised target price of ₹480, down from the previous ₹530. The brokerage's latest research report dated May 3, 2026, acknowledges that while Kotak Mahindra Bank reported strong Q4FY26 results with PAT growing 13% YoY to ₹40.3 billion, the guidance of a year-on-year dip in FY27 NIM was underwhelming. The bank's Q4FY26 RoA stood at 2.1% with CET 1 remaining strong at 22.1%, while unsecured retail has started growing quarter-on-quarter with an upward bias expected incrementally.
According to ICICI Securities research, Kotak Mahindra Bank reported a strong Q4FY26 result marked by NIM uptick and historically low slippages/credit costs. The bank's Q4FY26 PAT grew 13% YoY to ₹40.3 billion, driven by 7-8% YoY growth in NII, PPOP and improved credit costs. The lender's net interest margin expanded about 13 basis points quarter-on-quarter, the highest amongst the top four private sector banks, with credit costs normalized to 39 basis points, down 25 basis points year-on-year. The bank maintained loan growth at about 16% year-on-year with stable operating expense growth helping drive return on assets back above 2%.
As per ICICI Securities, the brokerage estimates ~16% CAGR in loans and ~2% RoA for FY26-28E. The bank's fixed-rate SA balances grew strongly at 18% YoY, while the drag on floating rates seems to be receding. Kotak sounded confident about sustaining healthy asset quality trends, barring quarterly variations, with ECL transition impact guided at <2% of NW. The brokerage maintains its buy rating while cutting the target price to ₹480 based on ~2x FY28E core banking versus the earlier 2.3x multiple, citing risks of higher-than-expected stress as the primary concern.
ICICI Securities has issued a buy rating on Aditya Birla Capital with a revised target price of ₹420, up from the earlier ₹400. According to the latest research report dated May 5, 2026, Aditya Birla Capital delivered robust performance in both growth and asset quality fronts in its lending businesses, resulting in 2.3%/2.1% RoA for the NBFC/HFC businesses in Q4FY26. The brokerage believes ABCL's strong execution, especially in driving industry-leading growth and cost efficiencies, positions it well to achieve ~2.5% NBFC RoA and 20-25% AUM growth by FY27E. The HFC business growth leadership continues with stable asset quality metrics, and with growth capital coming in post ABCL's deal with Advent, the HFC business could sustain its growth momentum with >30% CAGR over FY26-28E.
As reported by The Times of India, Citigroup has a high-risk buy rating on Vodafone Idea with a target price of ₹14. The years-long AGR saga has concluded with the government reassessing the company's AGR dues at ₹64,000 crore as of December 2025, which is 20% below the ₹80,500 crore that was outstanding. With no interest accruing and an effective 10-year repayment moratorium, this reduces VI's effective AGR burden from an estimated ₹35,000 crore to ₹26,000 crore on NPV basis. The relief enables VI to close its pending ₹25,000 crore bank debt raise and start its ₹45,000 crore three-year capex plan.
