KEI Industries Ltd., Bharti Airtel Ltd. and BSE Ltd. were among top stocks on brokerages’ radar on Wednesday, along with various sectors in focus.

Jefferies, BofA and Citi Research have come up with their India Strategy notes as investors battle out the ongoing correction. Meanwhile, analysts have also done a deep dive into sectors like real estate, telecom and asset management companies.

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.

Jefferies India Strategy

  • India’s underperformance is at reversal levels.

  • Relative valuations against the MSCI Emerging Markets index have returned to the 10-year average.

  • Historically, from such levels, Indian markets have bounced both in relative and absolute terms.

  • With the Dollar Index down 4% from the peak, foreign portfolio investment flows might turn.

  • The FPI ownership tracker indicates that India’s positioning by emerging market funds is at a decadal low.

  • Near-term positives such as an economic uptick and liquidity easing may lead to a near-term bounce.

Jefferies Asia Pacific Quantitative Strategy

  • India downgrades are stabilising, but the market remains expensive.

  • Elevated earnings expectations amid slowing nominal gross domestic product growth have driven the ongoing downgrade cycle in India.

  • Despite the MSCI India index falling nearly 20% from its peak, it remains the most expensive market in Asia.

  • With earnings growth likely at 12% for fiscal 2026, a forward price-to-earnings ratio of 16-18 times could be the floor.

  • Prefers China over India and shifts focus from value to growth, favouring compounders, dividend growers, and multibaggers.

Goldman Sachs On KEI Industries

  • Retained a ‘neutral’ rating on the stock and a target price of Rs 3,780 apiece.

  • Management remains constructive on the demand outlook in India as well as for exports.

  • Sees limited impact from the new entrant as demand is strong enough to accommodate an additional player.

  • There is not much scope for any player to adopt a deep discounting strategy for gaining market share, according to management.

  • Management noted that the exports outlook remains strong even in the event of additional United States tariffs.

CLSA On Bharti Airtel

  • Retained an ‘outperform’ rating on the stock and a target price of Rs 1,890 apiece.

  • Airtel Finance is expanding offerings and already serves one million customers.

  • Airtel Finance is a strategic asset, and the partnership with Bajaj Finance is promising.

  • Gold, business, and personal loans will be next in line for expansion.

  • Airtel Finance’s prospects are high as 200 million Bharti subscribers do not overlap with Bajaj Finance.

  • Expects Airtel Finance to become large in the medium term.

  • However, still do not include a separate valuation for the Finance arm within Bharti Airtel.

Goldman Sachs On BSE

  • Retained a ‘neutral’ rating on the stock and lowered the target price to Rs 4,230 apiece from Rs 4,880.

  • The National Stock Exchange expiry day change is negative for BSE’s options market share.

  • Reduced BSE’s potential to gain additional market share.

  • Potential share cap would act as a loss of tailwind for BSE’s top-line revenue.

  • Additionally, shrinking industry volumes in options trading would act as a headwind.

  • This could transpire due to tighter client limits proposed by the Securities and Exchange Board of India.

  • Cut earnings per share estimates for fiscal years ending March 2026, 2027, and 2028 by 13%, 16%, and 16%, respectively.

HSBC On Real Estate

  • DLF — Retained a ‘buy’ rating on the stock with a lower target price of Rs 920 apiece from Rs 1,050.

  • Godrej Properties — Retained a ‘buy’ rating on the stock and got lower target price of Rs 3,500 apiece from Rs 3,700.

  • Oberoi Realty — Kept its ‘hold’ rating on the stock but target price lowered to Rs 1,780 apiece from Rs 2,070.

  • Prestige Estates — Retained a ‘buy’ rating on the stock and lower target price of Rs 1,650 apiece from Rs 1,800.

  • Sobha — Retained a ‘buy’ rating on the stock and lowered target price of Rs 1,650 apiece from Rs 1,900.

  • Be cautious but not fearful, as real estate stocks have underperformed due to multiple macroeconomic concerns and the risk of missing guidance.

  • Performance in the first nine months of the fiscal, balance sheet strength, upcoming launches, and unsold inventory reduce downside risks.

  • Target price reductions reflect expectations of a potential peak in the residential cycle, leading to lower net asset value accretion.

HSBC On AMCs

  • HDFC Asset Management Co.: Retained a ‘hold’ rating on the stock and a lowered target price of Rs 3,900 apiece from Rs 4,350.

  • Nippon Asset Management Co.: Rating downgraded to ‘hold’ from ‘buy’ and lowered the target price to Rs 550 apiece from Rs 840.

  • Not all Systematic Investment Plans are sticky, with more than one-fourth of total assets under management having a holding period of less than one year.

  • Thirty percent of investments are in schemes with a high propensity for redemption.

  • Rising discontinuation rates and mark-to-market losses weaken the near-term assets under management growth outlook.

  • Cut earnings per share estimates and downgraded Nippon Asset Management Co. due to growth pressures.

HSBC On Telecom

  • Bharti Airtel: Retained a ‘buy’ rating on the stock and raised the target price to Rs 1,985 apiece from Rs 1,940.

  • Vodafone Idea: Retained a ‘reduce’ rating on the stock but with lowered target price of Rs 6.50 apiece from Rs 7.10.

  • Free cash flow is set to surge for Bharti Airtel due to rising mobile average revenue per user, growth in home broadband subscribers, and declining network capital expenditure intensity.

  • No spectrum renewals over the next five years to further aid free cash flow growth.

BofA India Strategy

  • Turns constructive on the Nifty 50 with a potential return of 14%.

  • Stays bearish on small- and mid-cap stocks but turns constructive on Nifty 50, as it now trades at its long-term average valuation.

  • Expects 14% returns for Nifty 50 in calendar year 2025, with a target of 25,000 by December 2025.

  • Prefers select domestic cyclicals while maintaining a defensive stance.

  • Key risks include tariff wars, a slowdown in the United States, and domestic fund flows.

  • Small- and mid-cap stocks still trade at a 52% and 13% premium, respectively, to Nifty 50 valuations.

  • Most small- and mid-cap stocks remain expensive across fundamental valuation metrics.

Citi India Strategy

  • Met more than 30 investors in the United States last week.

  • Most emerging market funds were underweight on India, marking a stark contrast to the same trip last year.

  • Frequently discussed stocks included HDFC Bank, Kotak Bank, ICICI Bank, Infosys, Tata Consultancy Services, Reliance Industries, Bharti Airtel, Zomato, Varun Beverages, Trent, Apollo Hospitals, Max Healthcare, and UltraTech Cement.

  • Economic slowdown is cyclical, with a gradual recovery underway, brokerage said.

  • A constructive view is based on an anticipated recovery in gross domestic product and corporate earnings.

  • Emerging market funds’ India positioning is at a 20-year low, providing a favourable entry point as growth recovers.

  • Stability or acceleration in earnings will be a key catalyst, according to the brokerage.

  • Preferred sectors include banking and insurance, telecom, healthcare, and cement.

Jefferies On Reliance Industries

  • Retained a ‘buy’ rating on the stock and a target price of Rs 1,660 apiece.

  • Underperformance relative to Nifty 50 is due to a slowdown in the retail segment and subdued earnings in the oil-to-chemicals business.

  • Market pessimism appears extreme, with the current market capitalisation implying a valuation of $48 billion for the retail business, significantly lower than the $106 billion valuation during the last funding round.

  • A combination of same-store sales growth and store expansions should restore 15% growth in retail revenue in the fiscal 2026.

  • Potential triggers include a tariff hike, likely listing of Jio Platforms, and an improvement in oil-to-chemicals profitability.

  • Valuations are at their lowest levels since the pandemic.

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