- BofA, Jefferies, and Kotak Securities maintain Buy on HDFC Bank despite chairman exit uncertainty
- Macquarie views metal sector correction as buying chance; JSW Steel and Tata Steel top picks
- Jefferies warns Middle East conflict delays LNG supply, impacting Indian gas players and OMCs
A host of global brokerages have rolled out fresh views on HDFC Bank, JSW Steel, Reliance Industries and several sectors, including IT, metals and autos, as analysts assess leadership changes, commodity volatility and macro uncertainties.
BofA on HDFC Bank
Maintain Buy with TP of Rs 1,175
Unexpected chairman exit adds to near-term uncertainty
Fundamentals remain intact
Exit attributed to personal differences with senior management
Strong governance track record over the past 25 years remains intact
Constructive view supported by attractive valuations and improving operating performance
Sustainable loan growth improvement key for next re-rating
Jefferies on HDFC Bank
Maintain Buy with TP of Rs 1,240
Outgoing chairman's comment of “no wrongdoing” and RBI clarification provide comfort
Valuations seen as attractive
Kotak Securities on HDFC Bank
Maintain Buy with TP of Rs 1,050
Stability reaffirmed but re-rating awaits clarity
Limited visibility on reasons for exit could remain an overhang
May increase scrutiny on senior management transitions
Valuation comfort persists, but triggers for re-rating remain unclear
Discount to ICICI Bank may widen, while premium to Axis Bank could narrow
Macquarie on Metal Sector
Correction seen as a buying opportunity; prefer ferrous stocks
Steel spreads likely to sustain with upside risks
Top Picks and Ratings:
JSW Steel – Maintain Outperform; TP Rs 1,319
Tata Steel – Maintain Outperform; TP Rs 222
Jindal Steel – Maintain Outperform; TP Rs 1,193
Hindalco – Maintain Neutral; TP Rs 979
Coal India – Maintain Neutral; TP Rs 445
CLSA on Nazara Technologies
Maintain Underperform with TP of Rs 190
Ongoing acquisitions and deal outflow of $300 million raise risk of equity dilution
Valuations remain expensive
Jefferies on Oil & Gas
Middle East conflict disrupting gas infrastructure in Iran and Qatar
Delays normalization of supply and pushes up medium-term LNG prices
Indian gas players most impacted
Global LNG oversupply scenario pushed out
OMCs most affected by crude rally with HPCL > IOCL > BPCL
ONGC's consolidated EPS could decline due to HPCL stake despite higher crude
Reliance Industries seen benefiting from higher refining margins if windfall tax not reimposed
Citi on IT Sector
North America revenue growth at 3% YoY (constant currency); EMEA at 2%
Financial services segment grew 7% YoY
Headcount trends remain muted across large-cap Indian IT firms
Bookings growth modest at 1% YoY for Accenture
Client spending stable but pricing remains highly competitive
Demand drivers include cloud, data and emerging AI programs
Expect increased M&A activity amid slower organic growth
Remain cautious on Indian IT
BofA on IT Sector
Accenture read-through suggests growth outlook remains intact
AI opportunity expanding gradually
Pricing showing improvement in select pockets
Middle East situation not yet impacting demand meaningfully
FY26 IT spending trends expected to remain similar to FY25
Morgan Stanley on IT Sector
Accenture results largely in line for Indian IT peers
Managed services business showing some deceleration
Financial services vertical seeing YoY slowdown but expected to pick up
Indicates mixed demand trends for Indian IT
Jefferies on IT Sector
Accenture takeaways suggest weaker H2FY26 growth outlook
Implied growth guidance of 0.5–4.5% vs 4.5% in H1
Near-term growth unlikely to improve
Escalation in Middle East conflict poses downside risk to FY27 growth expectations
Maintain Underweight stance; AI seen as structural drag
CLSA on Auto Sector
Crude price pressures could significantly impact FY27 earnings
Potential for 30–40% earnings cuts if current conditions persist
Past corrections suggest downside risk of another ~15%
Margin recovery expected in FY28 with easing commodity prices or price hikes
Top Picks and Ratings:
M&M – Maintain Outperform; TP Rs 4,448
Bajaj Auto – Maintain Outperform; TP Rs 10,707
TVS Motor – Maintain Outperform; TP Rs 3,846
Tata Motors PV – Maintain Outperform; TP Rs 440
Ashok Leyland – Maintain Outperform; TP Rs 216
Maruti – Maintain Outperform; TP Rs 15,961
Eicher – Maintain Outperform; TP Rs 7,454
Escorts – Maintain Outperform; TP Rs 3,752
Hero MotoCorp – Maintain Hold; TP Rs 5,437
Hyundai – Maintain Outperform; TP Rs 2,652
Tata Motors CV – Maintain Outperform; TP Rs 648
Morgan Stanley on Auto Sector
Strong volume growth continues despite rising inflationary pressures
Commodity prices, memory costs, freight rates and fuel costs posing margin risks
Duration of disruption key to assessing downside
Prefer M&M, TVS Motor, Hero MotoCorp and Maruti Suzuki as Overweight picks
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