Banking and Financial Services

UBS Equity Calls

UBS maintains a neutral stance on IndusInd Bank, reducing its target price from Rs1,350 to Rs1,150 per share due to revised EPS estimates. Similarly, Axis Bank's target price has been lowered to Rs1,210 from Rs1,250, maintaining a neutral call.

"HDFC Bank, ICICI Bank, and Federal Bank remain our top picks," says UBS, citing strong asset quality and growth prospects.

Credit Cost Estimates

UBS has increased credit cost estimates for Indian lenders by 2-25 basis points and reduced FY25/26 EPS estimates by 1-7%.

"Among NBFCs, we increase credit cost estimate for FY25/26 by 1-20 basis points and cut FY25/26 EPS by 1-7%. Credit cost estimate raised for Bajaj Fin, Cholamandalam Invst, Shriram Fin, and M&M Fin," reports UBS.

Energy

Jefferies Upgrade on Indian Oil

Jefferies has upgraded its rating on Indian Oil to "Buy," with a target price of Rs185 per share. Refining margins are projected to improve in CY25, benefiting companies like Indian Oil that have a high refining ratio.

Technology

Citi on Infosys

Citi maintains a neutral rating on Infosys, setting a target price of Rs1,965 per share.

"Infosys witnesses an improvement in discretionary spend in pockets. New deals are also driven by compliance and digital transformation initiatives," says Citi.

Pharmaceuticals

GS on Select Pharma Stocks

Goldman Sachs prefers Syngene (Buy) and Neuland (Buy) over Divi's (Neutral), Gland (Sell), and Laurus (Sell).

"Export data exhibits relatively high correlation to actual reported numbers," says GS. Export data for Nov'24 indicates mixed trends, with Neuland Labs and Piramal Pharma showing strength.

Industrials

DAM on EPAC Durables

DAM Capital initiates coverage of EPAC Durables with a "Buy" rating and a target price of Rs 495.

EPAC is positioned to capture growth in India's RAC market due to its R&D capabilities, strong relationships, and increased market share.

Defense

UBS on HAL

UBS maintains a Buy rating on Hindustan Aeronautics (HAL), with a target price of Rs5,700. HAL received an order for Su-30MKI aircraft worth Rs 135bn, with 62.6% indigenisation.

"YTD HAL received manufacturing orders of Rs400bn, representing 40% of our FY25 order intake of Rs1tn. Defense orders to bunch up in Q4, HNAL remains our top pick," says UBS.

Markets

Morgan Stanley on Bull Market Comparison

Morgan Stanley compares the ongoing bull market to previous bull runs. The current market has a similar length to the 2003-08 rally but with lower returns.

"Previous bull markers have ended at higher multiples, so there maybe room for this one to go further," states Morgan Stanley.

"Overweight Banks remains our highest-conviction idea as growth gradually picks up," says the firm.

Healthcare

Investec on Medplus

Investec maintains its Buy rating on Medplus, targeting a share price of Rs 940.

"Co plans to add 600 stores in FY26," says Investec. The firm also believes that the company's generics business is seeing good adoption and that its diagnostic pilot project in Hyderabad is profitable.

Retail

Jefferies on Reliance Retail

Jefferies highlights the scale and growth opportunities of Reliance Retail.

"Omni-channel presence-case for a foray in Q-Commerce," suggests Jefferies, citing the company's investment in Dunzo.

Consumer Discretionary

Jefferies on Cement

Dealers have confirmed price hikes in the cement sector, indicating an improvement in demand.

"Demand growth has moderately improved. Recovery should continue into Q4 on revival in govt capex," says Jefferies, suggesting top players are cutting incentives.

Macroeconomics

CPI Data and Outlook

Inflation in November dipped to 5.5%, indicating disinflationary trends. However, further disinflation is necessary, according to HSBC.

HSBC expects RBI rate cuts in February and April meetings, bringing the repo rate down to 6%.

Morgan Stanley expects a cumulative 50bps rate cut from RBI in Q1FY25.