Stock Recommendations Today: IT, HDFC Life, Hindustan Zinc On Brokerages’ Radar NDTV Profit Research NDTV Profit

Citi believes the Indian IT sector’s demand could face a double blow after full effects of tariffs comes in. The brokerage has a sell call on Hindustan Zinc amid current valuations and a subdued zinc outlook.

HDFC Life Insurance Co.’s management expects moderate growth in the first half of the financial year 2026 followed by a pickup in the second half.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Thursday:

Citi On IT Services

• Global economy has been holding up fine for Indian IT.

• Demand could face a double blow after full effects of tariffs comes in.

• US cloud service giants are growing from AI services.

• AI growth not a positive sign for IT services growth.

Indian IT management commentary:

• Discretionary spend continues to be weak.

• Strong pipeline continues.

• Mid caps sees a comfortable growth.

• Continue to prefer Infosys, HCLTech and Mphasis.

Goldman Sachs On HDFC Life Insurance Co

• Management expects moderate growth in the first half of the financial year 2026 followed by a pickup in the second half.

• Growth is anticipated to outperform the overall industry.

• The impact of “surrender value” regulations has been largely mitigated.

• Pricing discipline is expected to support profitability.

• Lower interest rates are likely to aid demand for non-participating products.

• The company is regularly repricing products to reflect falling yields.

Citi On Hindustan Zinc

• Citi maintains a ‘sell’ rating on Hindustan Zinc with a target price of Rs 400, reflecting a 25% downside.

• The company announced its first interim dividend of Rs 10 per share for the financial year 2026.

• Citi incorporates an estimated dividend of Rs 15 per share for the financial year 2026.

• The sell rating is maintained amid current valuations and a subdued zinc outlook.

• Zinc is expected to be in surplus in calendar year 2025, while the silver outlook remains more resilient.

• Citi estimates that every 10% change in silver price impacts Ebitda by 3.6%.

• Every $100 per tonne change in zinc-lead London Metal Exchange prices is estimated to impact Ebitda by 5%.

• Key upside risks include higher silver, zinc, and lead prices, higher volumes, and rupee depreciation.

HSBC On Asset Managers

• Systematic investment plan flows are holding up, while lumpsum flows remain weak.

• Valuations for asset management companies are now close to the peak of the last cycle.

• The outlook for assets under management growth is muted.

• Earnings are expected to grow at a slower rate.

• HSBC remains cautious on the sector despite structural growth opportunities.

Morgan Stanley On Life Insurers

• Individual new sum assured growth stronger than individual APE for most large players.

• SBI Life delivered strong 68% annual growth in May due to sustained new retail protection products.

• ICICI Prudential Life and HDFC Life’s individual new sum assured growth was at 19% and 14% respectively, on an annual basis.

CLSA On Tata Communications

• CLSA maintains an Outperform rating on Tata Communications with a target price of Rs. 2,100, implying a 21% upside.

• Management targets data revenue of Rs. 28,000 crore and Ebitda margins of 23-25% by financial year 2028.

• The data business currently forms 84% of consolidated revenue.

• Data business margin was 18.5% in the financial year 2025.

• Management guided for an Ebitda compound annual growth rate of 18% by financial year 2028.

• The company is expected to see sizable market expansion opportunities led by digital platforms and services.

Citi On Economy

• Impact of policy stimulus on demand is expected to materialise in the second half of financial year 2026.

• Share of services in total consumption has increased to 51.7%, up from 47% ten years ago.

• Services account for 60% of incremental consumption growth.

• Durable goods have been growing faster than services.

• The stimulus may lead to larger growth in the services sector.

• Demand for durable goods could pick up pace as a result of the stimulus.

Morgan Stanley On Equity Strategy

• The Morgan Stanley MNC Sentiment Index for India rose to a two-year high and continued to gap higher versus China, marking the 14th consecutive quarter of outperformance against China.

• High MNC sentiment bodes well for India’s capital expenditure cycle, balance of payments, corporate profits, and share prices.

• Strong sentiment is likely to result in higher investments and profits.

• The MNC Sentiment Index has a strong association with foreign portfolio investor profits and the direction of share prices.

Citi On Consumption

• Near-term outlook for India’s consumer sector remains challenging.

• Monitor for any recovery in financial year 2026.

• Expect urban consumption recovery starting from the second half of the fiscal.

• Maintain a positive outlook on rural consumption demand.

• Companies are likely to reinvest benefits from raw material cost softening to prioritise volume growth and market share gains.

• Increased competitive intensity is expected across the sector.

• Preferred food and beverage top picks: Britannia, United Spirits, and Varun Beverages.

• Preferred home and personal care top pick: Godrej Consumer Products.

Investec On Max Financial Services

• Maintains ‘buy’ with a price target of Rs 1,750, indicating 14.9% upside potential.

• Appointment of Sumit Madan as Managing Director and Chief Executive Officer could be a positive development.

• The appointment eliminates overhang of management uncertainty.

. Read more on Markets by NDTV Profit.Here are the analyst calls to keep an eye out for on Thursday.  Read MoreMarkets 

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