On Friday, September 12, 2025, brokerages issued fresh views on key sectors and stocks including autos, pharmaceuticals, capital markets, and IT services. Citi continues to favour passenger vehicle OEMs over commercial vehicles and two-wheelers, Investec upgraded Lupin, Jefferies analysed the impact of potential changes in derivatives expiry on capital market companies, while Infosys remained in focus with multiple brokerages commenting on its record buyback and outlook.
Citi on autos
Citi reiterated its preference for Indian passenger vehicle OEMs over CVs and 2Ws, with Maruti as its top pick. The brokerage noted that optimism, which was earlier based on self-help stories such as Maruti’s new models and exports, M&M’s robust UV portfolio and tractor demand, and Hyundai’s new launches and capacity expansion, now gets an additional boost from macro triggers. It highlighted that proposed GST rate cuts, combined with the delayed impact of income tax revisions and lower interest rates, could create an environment where broader industry growth outpaces prevailing estimates. Citi raised target prices across key OEMs, with Maruti at ₹17,500, M&M at ₹4,170, and Hyundai at ₹2,900.
Investec on Lupin
Investec upgraded Lupin to a buy from hold and raised its target price to ₹2,265 from ₹2,100. The brokerage said the company is well placed to benefit from the upcoming GLP-1 opportunity in India. Following the recent correction, valuations appear reasonable. Investec expects a strong FY26, some moderation in FY27, and EPS growth resuming in FY28.
Jefferies on capital markets
Jefferies highlighted the speculation around possible changes in index derivatives expiry — from weekly to fortnightly or monthly, and whether same-day expiry will be retained. The brokerage noted that SEBI or exchanges have not confirmed any changes yet, but it modelled potential outcomes for BSE and Nuvama. Jefferies suggested that such changes could cut FY27 EPS by 20–50% for BSE and 15–25% for Nuvama. With shares already down 15% since July 9, the brokerage said a move to fortnightly expiry with separate settlement appears largely priced in. Investors will closely watch SEBI’s board meeting on September 12 for clarity.
CLSA on Infosys
CLSA maintained an outperform rating on Infosys with a target price of ₹1,861, following the company’s announcement of a ₹180 billion share buyback at ₹1,800 per share. CLSA noted that the buyback should provide some support to the stock in what is typically a seasonally weak second half of FY26. It added that Infosys is not seeing material changes in demand outlook, with management focused on cost optimisation amid weak discretionary spend. On generative AI, the company believes overall IT budgets will expand, with additional volumes offsetting deflationary pressures.
Nomura on Infosys
Nomura retained its buy rating on Infosys with a target price of ₹1,880. The brokerage highlighted the company’s largest-ever buyback worth ₹180 billion, equivalent to 2.4% of equity, to be conducted through a tender offer. Nomura expects Infosys to post 3.8% year-on-year USD revenue growth in FY26, including 40 basis points from acquisitions, though the estimate excludes the recently announced Versent deal. Infosys is currently trading at 20x FY27 earnings and offers an attractive dividend yield of 4.4%, according to the brokerage.
Kotak Institutional Equities on Infosys
Kotak Institutional Equities maintained a buy rating on Infosys with a target price of ₹1,850. Its non-deal roadshow takeaways pointed to a stable demand environment driven by cost take-out deals. The brokerage said Infosys’ early investment in generative AI positions it for stronger growth, better pricing, and margin defence. It also emphasised that Project Maximus has delivered across multiple dimensions and will support margin aspirations further.
Morgan Stanley on Infosys
Morgan Stanley maintained an equal-weight rating on Infosys with a target price of ₹1,700. The brokerage noted that the buyback announcement of ₹180 billion came in well above its initial expectation of ₹100–140 billion, making it Infosys’ largest ever. It expects execution could take three to four months based on historical timelines. Morgan Stanley viewed the timing of the buyback as a vote of confidence in the company’s stability, particularly amid heightened macro uncertainty.
Disclaimer: The views and investment recommendations expressed in this article are those of the respective brokerages. Business Upturn does not endorse or recommend any investment decisions. Investors are advised to consult financial experts before making investment choices.
