
Macquarie has issued its latest outlook on the financial sector, downgrading SBI Life Insurance from “Overweight” to “Neutral” with a reduced target price of ₹1,435 (previously ₹1,830) and PB Fintech from “Neutral” to “Underweight,” cutting its target price to ₹1,530 (from ₹1,220). Meanwhile, it has upgraded LIC from “Neutral” to “Overweight” with a revised target price of ₹1,215 (up from ₹1,200) and ICICI Lombard from “Neutral” to “Overweight,” raising the target price to ₹2,255 (from ₹2,000).
The brokerage expects FY26 to deliver better loan growth with stable performance, while margins may slightly moderate and credit costs remain steady. It forecasts large private banks to achieve 16-17% EPS growth and ROEs. Macquarie also highlights selective risk-reward opportunities for NBFCs, though insurance companies face a regulatory overhang.
Top picks in the financial sector include HDFC Bank, ICICI Bank, Aditya Birla Capital, PFC, and Shriram Housing Finance.