Indian equity markets are expected to see stock-specific movements on March 19, 2025, as brokerages weigh in on key sectors, including steel, IT, metals, microfinance institutions (MFIs), and power.
Steel stocks rally on safeguard duty and global developments
JPMorgan has highlighted a 12% safeguard duty on steel imports for 200 days as a positive for Indian steelmakers. The move is expected to push domestic hot-rolled coil (HRC) prices up by ₹2,000 per tonne. Additionally, China’s steel output cuts and Germany’s infrastructure fund have further fueled bullish sentiment in the sector.
- Tata Steel, JSW Steel, and SAIL are likely to see positive stock reactions.
- CLSA also sees a stronger outlook for metals demand, driven by China’s stimulus measures and European growth. It has raised target prices for JSW Steel and Tata Steel.
- Emkay Global remains bullish on Tata Steel (TP: ₹185) and JSW Steel (TP: ₹1,100), citing a mid-cycle recovery.
IT sector: valuation concerns and cautious growth outlook
- Citi notes NSEIT is trading at 24x forward earnings, despite a 16% decline CYTD.
- FY26 revenue growth is projected at just 4%, with margin improvements remaining a concern.
- The brokerage has upgraded Mphasis to Neutral but prefers HCLTech and Infosys.
Positive sentiment for MFIs; power sector faces regulatory hurdles
- HSBC maintains a positive outlook on MFIs for 2025, though it finds CreditAccess Grameen’s valuation high at 1.8x FY26 BVPS.
- Ujjivan SFB and Equitas SFB are seen as better return prospects due to attractive valuations.
- In the power sector, HSBC flagged CERC’s draft amendment aimed at unlocking unused transmission capacity but maintained a ‘Reduce’ rating on Power Grid, cutting its target price to ₹250.
Pidilite Industries: mixed views on growth potential
- Citi issued a Sell call on Pidilite with a target price of ₹2,800, citing near-term demand uncertainty.
- Nuvama, however, maintains a Buy with a higher target of ₹3,660, seeing growth potential in tile adhesives, waterproofing, and emerging markets like Africa and Saudi Arabia.
Market participants will be closely watching these stocks for potential movements based on these brokerage recommendations.
(Disclaimer: This article is for informational purposes only and does not constitute financial advice.)