Brokerage firms have shared fresh sectoral insights and stock-specific calls across multiple industries, highlighting stable demand in real estate, improving trends in pharmaceuticals, potential windfall gains for refining companies, and continued optimism in sectors such as cement, banking and IT services despite global uncertainties.
Nomura said demand in India’s residential real estate market remains stable even amid an uncertain macroeconomic environment. According to the brokerage, demand has been resilient for projects offered by top branded developers in key markets such as Bengaluru, Mumbai and the National Capital Region. However, it noted that resilience is largely visible in projects that are priced appropriately. Based on these trends, Nomura believes the real estate cycle is currently in a mature phase rather than entering a slowdown, and developers remain on track to meet or potentially beat their guidance.
In the pharmaceutical sector, Nomura highlighted strong prescription and sales trends in January based on IQVIA data. Excluding gRevlimid, trailing three-month sales growth for January 2026 increased the most for Zydus Lifesciences and Lupin on both month-on-month and quarter-on-quarter bases. Both companies gained market share in gMyrbetriq and also benefited from demand for seasonal products. Lupin additionally recorded a material increase in market share in gSpiriva and gRisperdal Consta. Nomura also noted that Zydus has filed for first-to-file sole exclusivity for gBrukinsa tablets, a product with peak sales potential of about $8 billion. Lupin has filed ANDAs for gEmrosi and gNeffy, which have peak sales potential of $300 million and $500 million respectively.
In the oil and gas sector, Nomura said aviation turbine fuel and diesel crack spreads surged sharply due to severe supply disruptions from Middle East exporters, refinery outages and China’s ban on exports of diesel and gasoline. Aviation fuel prices have risen to more than double previous record highs, while Singapore gross refining margins jumped to around $30 per barrel from $3.4 per barrel last week. Nomura believes refining companies could report windfall profits in the upcoming quarter and sees Reliance Industries as a key beneficiary. However, for oil marketing companies the gains from higher refining margins could be offset by significantly higher fuel marketing losses, which are currently estimated at about ₹20 per litre.
Brokerages also shared mixed views on the cement sector. Nomura’s dealer checks indicate near-term pricing remains muted as companies push volumes toward the end of the financial year. Across India, trade prices may see modest improvement in March 2026, while fourth-quarter trends indicate muted growth overall. Regional dynamics remain varied, with southern markets seeing firmer prices and eastern markets expected to witness moderate increases. Nomura continues to prefer Ultratech Cement, Dalmia Bharat, Ambuja Cements, Shree Cement and Nuvoco. Separately, Nuvama said cement demand improved in February and is expected to remain healthy through March, supported by housing and construction activity. The brokerage highlighted price hikes of ₹5–₹10 per bag across North, West and Central regions, though some increases in East and South were later rolled back. Nuvama remains positive on the sector and identifies JK Cement as its top pick, while noting that rising pet coke prices and geopolitical volatility remain key risks.
CLSA highlighted developments in the infrastructure sector, noting that founders of IRB Infrastructure and NCC have purchased small stakes in their respective companies. The brokerage said insider buying is generally seen as a sign of confidence in the business outlook. IRB’s tolling business has delivered 11% year-to-date growth and the company has announced a five-year plan to become net debt free by FY30 while expanding its asset base by 75% over the next three years. NCC’s third-quarter performance was affected by prolonged monsoons and slower project execution, but its order backlog rose 43% year-on-year, improving visibility. CLSA expects execution and margins to start improving from the fourth quarter of FY26.
In the tyre industry, CLSA warned that the ongoing geopolitical conflict in the Middle East has led to a 15–20% spike in key raw-material costs, posing a profitability risk for tyre manufacturers. About 45% of tyre raw materials are linked to crude oil while another 45% comes from natural rubber, making the sector highly sensitive to commodity price movements and currency depreciation. If Brent crude remains near $80 per barrel and domestic rubber prices stay around ₹220 per kilogram, CLSA estimates a potential 400 basis-point hit to gross margins in FY27 even after assuming price hikes.
HSBC also flagged rising cost pressures in the paints sector, noting that cost inflation has returned after nearly four years. While historical cycles suggest companies may pass on costs through price increases, the brokerage believes the competitive landscape has evolved significantly. HSBC maintained Hold ratings on Asian Paints and Berger Paints while cutting target prices to ₹2,600 and ₹500 respectively.
UBS highlighted risks to the banking sector from a potential energy-driven inflation shock. According to the brokerage, if oil prices rise by less than $10 per barrel the impact on bank earnings could range between +1% and –3%, but a larger increase of $20–30 per barrel could lead to a 4–8% earnings decline. UBS said mid-sized private banks and state-owned banks are more sensitive to such shocks than large private lenders, while identifying Axis Bank and Kotak Mahindra Bank as preferred picks and maintaining buy ratings on ICICI Bank, HDFC Bank, Bank of Baroda and Canara Bank.
Nuvama remained constructive on the IT services sector over the medium to long term, stating that generative artificial intelligence disruption is likely to follow patterns seen in previous technology cycles. The brokerage believes large enterprises will depend on IT services companies for deployment, integration and scaling of generative AI solutions, while AI-led services may command higher billing rates and expand the industry’s total addressable market over time.
Among stock-specific calls, Jefferies maintained a buy rating on Shriram Finance with a target price of ₹1,220, stating that interactions with management indicate commercial vehicle demand remains healthy and the company continues to guide for 18–20% AUM growth over FY27–28. Jefferies also reiterated a buy rating on Navin Fluorine with a target price of ₹7,800, citing strong growth levers in CDMO, data-centre cooling solutions and specialty chemicals. The brokerage maintained a hold rating on Infosys with a target price of ₹1,290, noting that demand remains steady while the company expects generative AI investments to remain margin neutral and free cash flow conversion to stay above 100% in FY26.
Elsewhere, Macquarie upgraded Nykaa with a target price of ₹210 while noting that strong growth in the company’s own beauty brands, particularly the Dot & Key skincare portfolio, has driven performance. JPMorgan maintained a neutral rating on InterGlobe Aviation with a target price of ₹4,630, citing rising fuel costs and slowing air traffic growth, while UBS maintained a buy rating on the airline with a revised target price of ₹5,480 despite near-term headwinds from crude prices and currency movements.
In consumer and industrial coverage, Citi initiated coverage on Orkla India with a buy rating and a target price of ₹750, highlighting strong category tailwinds in spices and packaged foods. Nuvama maintained a buy rating on Polycab with a target price of ₹9,630 citing strong demand in cables and wires, while also maintaining a buy call on Tata Consumer with a target price of ₹1,500 as the company transitions into a multi-category food and beverage player. Motilal Oswal maintained buy ratings on Crompton Greaves and Delhivery with target prices of ₹3,350 and ₹580 respectively, citing growth opportunities across multiple business segments.
Meanwhile, HSBC maintained a buy recommendation on Maruti Suzuki with a target price of ₹17,400, stating that demand remains resilient even as commodity costs create margin pressures. Goldman Sachs maintained a sell rating on Gland Pharma with a target price of ₹1,525, noting that its growth outlook assumes conservative improvement in GLP-1 volumes while the company aims to increase the contribution of its CDMO business over the medium term.
Disclaimer: The views and recommendations expressed above are those of individual brokerages and analysts and do not represent the views of this publication. Investors should consult certified financial advisors before making investment decisions.