Brokerages remained selectively bullish on Indian equities today, backing stocks across multiple sectors including Polycab India, Shree Cement and Bajaj Auto with fresh 'Buy' and 'Overweight' calls. According to reports from ET Now, analysts showed particular optimism for industrial, auto and capital goods sectors, though caution persisted on certain stocks due to valuation concerns. The selective approach reflects a measured market sentiment as investors navigate current market conditions. Indian stock market benchmarks BSE SENSEX and NIFTY 50 surged over 1% on Wednesday amid positive global cues, with BSE SENSEX jumping 940.73 points to close at 77,958.52 and NIFTY 50 rising 298.15 points to settle at 24,330.95. Market analysts noted strong buying across sectors during final trading hours, helping both benchmark indices finish near day's highest levels. Technical indicators support this bullish outlook, with the Put-Call Ratio (PCR) increasing above 0.7, indicating traders are selling more Put options than Call options, which generally signals firming up of bullish sentiment in the market.
Shree Cement emerged as a key pick with BNP Paribas maintaining 'Neutral' with a revised target of ₹27,400 (up from previous target), while Elara Capital maintained 'Buy' with a target of ₹31,171 and Emkay Global Financial Services downgraded to 'ADD' with a target of ₹27,500. As reported by ET Now, Bajaj Auto received multiple 'Buy' ratings with Emkay Global Financial Services setting a target of ₹12,600 and Motilal Oswal Financial Services maintaining 'Buy' with a target of ₹940. Hero MotoCorp also attracted attention with Emkay Global Financial Services maintaining 'ADD' with a target of ₹6,000 and Nuvama Institutional Equities maintaining 'BUY' with a target of ₹6,000. Bajaj Auto reported strong quarterly earnings for Q4 FY26, posting a standalone net profit of ₹2,746 crore compared to ₹2,049 crore in the same period last year, registering a 34% year-on-year rise.
The switchgear sector presents significant growth opportunities driven by government's aggressive push on infrastructure spending, rapid expansion of renewable energy capacity, and real estate sector picking up momentum. According to Equitymaster, demand for switchgear (both low voltage and medium voltage) has been on a tear with the ongoing 'China Plus One' shift where global manufacturers are actively looking to diversify supply chains, positioning Indian switchgear companies favorably. RMC Switchgears, incorporated in 1994 and engaged in manufacturing electrical enclosures and laminates through its Jaipur plant, represents one of the key players in this sector. This infrastructure-driven growth could translate into a sector with strong earnings visibility, decent pricing power, and a long runway ahead.
Motilal Oswal recommended a 'Neutral' rating on Shree Cement with a target price of ₹26,000 in its research report dated May 06, 2026, marking a contrasting view from other brokerages. According to Motilal Oswal's analysis, Shree Cement's 4QFY26 operating performance was in line with estimates, with EBITDA declining ~11% YoY to ₹12.5 billion due to cost pressure and EBITDA/t declining ~19% YoY to ₹1,161. The brokerage noted that OPM contracted 4.8pp YoY to ~22% and adjusted PAT declined ~8% YoY to ₹5.3 billion, while maintaining earnings estimates for FY27/FY28E. BNP Paribas maintains a 'Neutral' stance on Shree Cement with a target price of ₹27,400, noting that Shree Cement's Q4FY26 standalone EBITDA (declined 9% year on year) came largely in-line with BNPPe/consensus as a volume-driven revenue beat was largely offset by margin miss. CLC volumes rose 9% to 10.8 million tonne while blended realisation was up 3% q-o-q, though down 2% y-o-y on lower trade mix. The brokerage expects ₹150-200/tonne increase in Q1FY27 and notes that with Shree Cement having the highest green-power share, we prefer players with more cost-efficiency headroom in the current inflationary scenario.
Analysts flagged limited upside and valuation concerns for several stocks despite broader market optimism. According to ET Now reports, Kansai Nerolac Paints received an 'Underweight' rating from Morgan Stanley with a target of ₹191, while SRF Ltd faced mixed recommendations with Morgan Stanley maintaining 'Underweight' with a target of ₹2,209 and Emkay Global Financial Services maintaining 'ADD' with a target of ₹3,000. Exide Industries also drew caution with Motilal Oswal Financial Services maintaining 'Neutral' with a target of ₹327 and Nuvama Institutional Equities downgrading to 'REDUCE' with a target of ₹300.
