Equity Alert
Brokerages downgrade L&T, flag W Asia war as near-term concern
This story was originally published at 11:54 IST on 7 May 2026
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Equity Alert: Brokerages downgrade L&T, flag W Asia war as near-term concern
MUMBAI--1147 IST--Brokerage firms, Nomura and Emkay Global Financial Services, have downgraded Larsen & Toubro to "neutral" and "add", respectively, from "buy", citing the ongoing West Asia war as a near-term overhang for the company. Nomura trimmed its target price for the stock by around 13% to INR 3,940, indicating a near 2% downside from its closing price Wednesday. Emkay Global also cut its target price for the stock by over 7% to INR 4,450. The new target, however, indicates an upside of 11% from the stock's Wednesday close.
Nomura also trimmed its estimates for the company's 2026–27 (Apr-Mar) and FY28 earnings by 8% to factor in the lower-than-expected revenue and earnings before interest, taxes, depreciation, and amortisation guidance by the company for FY27, and disruptions in and higher costs of order executions due to the West Asia war. The stock currently trades at 32 times the FY27 core earnings estimates and 28 times the FY28 earnings estimates, implying lesser comfort on valuation, given near-term uncertainties and limited visibility on return on equity improvement, Nomura said.
Despite the strong order inflow and robust order backlog, L&T's March quarter earnings were impacted by weaker execution and margin pressures, Emkay said. The brokerage expects a gradual recovery going forward, even though higher share of the international order book amid the ongoing West Asia conflict remains a near-term overhang. Emkay also cut its FY27 and FY28 earnings per share estimates for the company by 9% and 8%, respectively, to factor in lower revenue and EBITDA assumptions.
The infrastructure behemoth hopes to achieve 10-12% growth in its revenue and order inflow during 2026-27 (Apr-Mar), its management told reporters at a post-earnings press conference Tuesday. The company expects margins to stay stable around 8.3% in FY27. For the March quarter, L&T reported a consolidated net profit of INR 53.26 billion, down 3% on year and lower than the analysts' estimate of INR 55.23 billion. The company's revenues for the quarter, on the other hand, rose 11% on year to INR 827.62 billion, but was below the Street's estimate of INR 828.66 billion.
At 1146 IST, shares of L&T traded at INR 3,994.60, down 0.3% from the previous close. So far, 1.2 million shares of the company have changed hands on the NSE, significantly below the 4.4 million shares traded till the same time Wednesday. Of the 14 research reports on the company available with Informist, 12 have a "buy" or equivalent call on the stock, with an average target price of INR 4,582 and two have a "hold" or equivalent recommendation. (Arya S. Biju)
Equity Alert: Polycab India rises to 52-wk high; co beats Q4 PAT, sales view
MUMBAI--1100 IST--Shares of Polycab India rose over 6% to a 52-week high of INR 8,991.50. The stock extended its gains for the second session and has risen over 7% during this period. Volumes of the shares traded was nearly six times higher from Wednesday. The company reported better-than-expected figures for key metrics during the March quarter.
At 1024 IST, shares of the company traded over 5% higher at INR 8,872 on the NSE. So far in the day, over 685,000 shares of the company changed hands on the exchange, higher than over 122,000 shares traded till the same time Wednesday.
The company reported consolidated net profit of INR 7.73 billion, up over 6% on year. Its top line for the quarter was INR 88.64 billion, which was an on-year growth of nearly 27%. However, the bottom line posted its slowest growth in six quarters, impacted by pressure on margins in its leading wires and cables segment due to a lower export mix. Analysts saw the company's bottom line for the reporting quarter at INR 7.12 billion and top line at INR 82.42 billion.
The company's product prices are in tandem with the rise in costs of raw materials as it hiked prices by 18–19% in Jan-Mar, the company said Wednesday in the post-earnings analyst call. "...materials like aluminum, copper, PVC, there has been no challenge with respect to passing on the price," a top official said. "Exports is actually going to be a big lever of our growth going forward," the official said. Polycab's exports to West Asia were impacted in March due to the war in the region; it still contributed around 16% to the total export revenue.
Brokerage Nuvama Institutional Equities raised its earnings-per-share estimates for the company 3–5% for 2026–27 (Apr-Mar) and FY28. The brokerage maintained its 'buy' recommendation on the stock with a target price of INR 9,740, up over 3% from the earlier target price.
Of the 13 brokerage recommendations available with Informist on the company, 11 have a 'buy' recommendation with an average target price of INR 8,943 and the remaining two have a 'hold' recommendation. (Arundathi A R)
Equity Alert: Bajaj Auto up 4% to over one-year high on robust Q4 earnings
MUMBAI--1024 IST--Shares of Bajaj Auto rose 4% to more than a one-year high of INR 10,740. The bike-maker's March quarter results provided positive momentum for its stock. The company's net profit and sales were above the Street's expectations and were robust. The company announced spending INR 56.33 billion on the buy back of 4.69 million shares.
For the March quarter, Bajaj Auto reported a 34% on-year rise in its net profit to INR 27.46 billion, above the Street's view of INR 26.31 billion. The net profit growth was the highest in eight quarters. The top line of the company grew 32% on year to INR 160.06 billion. This was above the analysts' estimate and the on-year growth in revenue was the fastest in nine quarters.
The two-wheeler segment of Bajaj Auto is expected to post a 10% volume compound annual growth rate over 2025-26 (Apr-Mar) to FY28 due to growth in the domestic and export segments, according to Nuvama Institutional Equities. "We reckon a recovery in domestic 2W (two wheeler) market share from 10.8% in FY26 to 11.2% in FY28, supported by new products," Nuvama said. The brokerage maintained a 'buy' call on the stock and raised the target price over 8% to INR 11,600.
Emkay Global Financial Services has raised the earnings per share estimate of Bajaj Auto for FY27 by 2.5% and for FY28 by 4.0%. This is due to higher average selling prices and higher growth in electric two-wheeler and premium motorcycle volumes, Emkay said. The brokerage maintained a 'buy' recommendation on the stock as well and raised the target price 5% to INR 12,600.
Nirmal Bang also maintained the 'buy' call with a target price of INR 11,838. "Our positive stance is driven by a sharp rebound in EV volumes post earlier supply disruptions, helping BAL (Bajaj Auto) regain market share in both E2W (electric two-wheeler) and E3W (electric three-wheeler) in H2FY26 (second half of FY26)," Nirmal Bang said. Sustained product upgrades and focused marketing are supporting a recovery in market share in the competitive and fast-growing 125 cubic capacity domestic segments, Nirmal Bang added.
At 1017 IST, shares of Bajaj Auto traded over 2% higher at INR 10,551. Nearly 858,000 shares of the company changed hands on the NSE, which is nearly seven times higher than the number of shares traded till the same time Wednesday. (Adhithya Aji)
Equity Alert: Mkts open higher on US-Iran deal hope, fall in crude prices
MUMBAI--1000 IST--Benchmark indices opened higher Thursday as crude oil prices eased after US President Donald Trump said it was very possible that Washington would make a deal with Iran. At 0936 IST, the Nifty 50 was at 24371.15 points, up 40.20 points or 0.2%, and the BSE Sensex was at 78044.95, up 86.43 points or 0.1%.
The Brent Crude Oil prices were over $102 per barrel, marginally higher from the previous close. On Wednesday, Brent crude prices hit a two-week low, falling over 11% to around $96.75 a barrel at one point before rising back above the $100 mark.
Automobile majors--Bajaj Auto and Mahindra & Mahindra--were the top gainers among the Nifty 50 constituents, up 3% and over 2%, respectively. Bajaj Auto's net profit for Jan-Mar rose 34% on year to INR 27.46 billion. This was the highest growth in the bottom line in eight quarters. The revenue of the company was at INR 160.06 billion, up 34% on year. Eicher Motors, Grasim Industries, HDFC Life Insurance Co., SBI Life Insurance Co., Tata Steel, and Eternal were up 1-2%.
On the other hand, Tata Consumer Products, Adani Ports and Special Economic Zone, and Power Grid Corp. of India were the worst performers in the 50-stock index. They were down around 1?ch. Hindustan Unilever, Bharat Electronics, Titan Co., and the heavyweight HDFC Bank were down 0.3-0.6%.
Among the Nifty 200 constituents, Polycab India rose nearly 5% to be the top gainer. The company's March quarter net profit and revenue surpassed analysts' view. One 97 Communications gained over 3%. The Paytm operator posted a net profit for the reporting quarter against a net loss in the previous one.
Meanwhile, Godrej Consumer Products and KPIT Technologies were the worst hit stocks in both the Nifty 200 and Nifty 500 indices. They were down over 4?ch. Godrej Consumer Products failed to meet the Street's view on its consolidated net profit for the March quarter. KPIT Technologies missed the analysts' estimate for its Jan-Mar net profit as well.
In the Nifty 500, Aptus Value Housing Finance India was the best performer and was up over 9%. The company's consolidated net profit for the reporting quarter rose 26% on year to INR 2.61 billion. (Adhithya Aji)
Equity Alert: Seen opening higher on US-Iran deal hope, falling oil prices
MUMBAI--0825 IST--The headline indices may open higher Thursday amid positive developments on the global front. Crude oil prices are also expected to support the equity market, as they are currently around $100 a barrel. US President Donald Trump said he had "very good talks" with Iran, and added, "it's very possible we'll make a deal." The early gains in its Asian peers are also likely to provide support. At 0833 IST, Brent crude July futures were 0.5% higher at $101.85 per barrel.
Operation Epic Fury "will be at an end" if Iran "agrees to give what has been agreed to, which is, perhaps, a big assumption," Trump posted on his Truth Social account Wednesday. However, he also said, Iran will be bombed "at a much higher level" if it doesn't agree to a peace deal.
"The White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations," US news website Axios reported Wednesday, quoting US officials. Washington expects Iran to respond on several key points in the next 48 hours, the report said. If formalised, the MoU would declare an end to the US-Iran war and start 30 days of negotiations for a detailed deal between the warring countries.
The Gift Nifty May futures also suggested a higher opening for the Nifty 50 index Thursday. At 0834 IST, the Gift Nifty was 0.5% down at 24429.50, down 0.5% from its previous close, but over 98 points higher than the Nifty 50's previous close of 24330.95.
Wednesday, the Nifty 50 settled at 24330.95, up over 290 points or 1.2% higher. "The Nifty 50 is expected to face resistance at 24500–24550 points and find support at 24300 levels," Sundar Kewat, technical and derivatives analyst at Ashika Group, said. He expects the index to see profit booking at this resistance level.
On the earnings front, Nifty 50 stock Bajaj Auto will be in the spotlight, as the company detailed its March quarter earnings Wednesday post market hours. Its net profit for the March quarter was INR 27.46 billion, up 34% on year and revenue was INR 160.06 billion, up nearly 32% on year. Both the metrics beat the analysts' expectations for the reporting quarter.
Brokerage Nuvama Institutional Equities upgraded Bajaj Auto's target price by 8.4% to INR 11,600 and retained its 'buy' recommendation on the stock. The brokerage raised its 2026–27 (Apr-Mar) and FY28 earnings-per-share estimates by 7–9%. Nuvama also sees the company's volumes to grow at a compound annual growth rate of 10% over FY26 to FY28. Shares of Bajaj Auto ended nearly 3% higher Wednesday at INR 10,319 on the National Stock Exchange.
In the global equity market, all US indices closed the previous session higher. Barring the CSI 300 index, all Asian equity indices traded higher. The CSI 300 index was down with a mere fall of 0.1%. (Arundathi A R)
Equity Alert: Markets in Asia gain despite renewed West Asia concerns
MUMBAI--0830 IST--Equity indices in Asia gained Thursday, even as fresh concerns about the fragile peace deal resurfaced after US President Trump said Iran will be bombed "at a much higher level" if it doesn't agree to a peace deal. Brent Crude oil futures topped the $100 per barrel level again.
Equity markets in Japan reopened on a strong note after being closed for three public holidays. The benchmark Nikkei 225 touched an all-time-high, supported by gains in electronics and technology stocks. Shares of heavyweight Softbank Group Corp. surged as much as 15% intraday. Shares of Mitsui Kinzoku, Renesas Electronics, and Daikin Industries rose 8-15%.
On the macroeconomic front, the Bank of Japan, in the minutes of its recent monetary policy meeting, highlighted that the impact of the war in West Asia on Japan's economy would depend on how long the war continues and in what form it takes. The members pointed out that more information was needed for the central bank to revise the baseline scenario of its outlook. As for prices, the committee members expect inflationary pressure to persist due to high crude oil prices.
Meanwhile, the South Korean benchmark index KOSPI was up marginally after touching a fresh high Wednesday. The FTSE Singapore Strait Times and the S&P ASX 200 indices maintained gains from the previous trading session.
The following were the levels of major Asian indices at 0825 IST:
|
Index |
Level |
Change in % |
| CSI 300 Index | 4876.1219 | (-)0.02 |
| Hang Seng Index | 26580.81 | 1.40 |
| Nikkei 225 Day | 62915.87 | 5.72 |
| TOPIX FIRST SECTION | 3853.64 | 3.35 |
| KOSPI | 7414.09 | 0.40 |
| FTSE Singapore Strait Times | 4938.26 | 0.22 |
| S&P/ASX 200 INDEX | 8868.70 | 0.85 |
(Ruchira Kagita)
Equity Alert: S&P 500, NSDAQ notch fresh highs; tech stocks top gainers
MUMBAI--0745 IST--The S&P 500 and the NASDAQ Composite touched new highs for the second consecutive session, driven by technology stocks and positive sentiment from reports that said the US is close to reaching an understanding with Iran to end the war and set a framework for more detailed nuclear negotiations.
On the stock front, Advanced Micro Devices closed sharply higher. The stock closed nearly 19% higher after the management revised its guidance. The company sees the market for central processing units growing over 35% per year. The market is expected to cross $120 billion by the end of the decade. "Agents are really driving tremendous demand in the overall AI adoption cycle, and we're very excited to be in the middle of it," Lisa Su, chief executive officer of Advanced Micro Devices, told CNBC. Among technology stocks, other key buzzers were Micron Technology, Intel Corp., and Nvidia Corp.
Among stocks in focus on the back of earnings was Walt Disney Co. Shares of the entertainment giant gained over 7?ter its March quarter results beat estimates. New CEO Josh D'Amaro guided the company's earnings per share to grow 12% in 2026.
What could be a spoilsport for markets Thursday was US President Donald Trump's statement threatening intensified attacks on Iran if Tehran does not agree to the contours of the peace deal. Crude oil prices had slipped sharply Wednesday but have risen again after Trump's threats against Iran. Brent Crude oil futures were up over 5% from Wednesday's lows at nearly $101 per barrel. US futures, however, have shown a slight positive bias.
The following were the closing levels of major US indices on Wednesday:
|
US Indices |
Levels |
Change in % |
|
Dow Jones Industrial Average |
49910.59 | 1.24 |
|
NASDAQ Composite |
25838.943 | 2.02 |
|
S&P 500 |
7365.12 | 1.46 |
(Ruchira Kagita)
US$1 = INR 94.80
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
All prices from National Stock Exchange, unless otherwise specified.
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