Market analysts are closely watching several key stocks, including Infosys, Tata Steel, SBI, Coal India, Maruti Suzuki, and Vedanta, amidst recent market fluctuations and company-specific developments. Here's a breakdown of the factors influencing these stocks:
Infosys: The IT giant experienced a volatile trading session recently, with its American Depositary Receipts (ADRs) on the NYSE surging as much as 40% before trading was halted. This spike was later attributed to a technical glitch or data-feed anomaly rather than any fundamental change in the company's performance or outlook. Infosys itself clarified that there were no material events requiring disclosure. Despite this unusual activity, analysts remain largely positive on Infosys, with a majority maintaining a 'buy' rating and an average 12-month consensus price target suggesting further upside. HSBC has issued a 'buy' rating for Infosys, setting a target price of Rs 1,720 per share. Technically, the stock has broken out of a bullish pattern, hinting at a potential upward movement, with a target price of Rs 2,000 in the next few months.
Tata Steel: Tata Steel is in the news due to its plans to significantly increase its domestic capacity, aiming for a nearly 50% boost with a 4.8-million-tonne addition. This expansion is geared towards strengthening its market leadership and securing long-term raw material supplies. CLSA raised its price target on Tata Steel to INR170.00 from INR165.00. The company is also involved in strategic acquisitions, including a plan to acquire the remaining 50% equity stake in Tata BlueScope Steel Private Limited. Tata Steel shares have already surged 25% this year, fueled by expansion approvals and strategic acquisitions. However, the company also faces challenges, including a recent order from the Commissioner of CGST & Central Excise.
SBI (State Bank of India): SBI's stock is attracting attention due to positive analyst ratings and growth prospects. HSBC has issued a 'buy' rating for SBI, with a target price of Rs 1,110 per share. This target indicates a potential upside of over 13% from recent closing prices. SBI's loan growth is expected to align with or exceed overall system growth in the coming years, supported by a relatively low loan-to-deposit ratio. The bank is also focused on expanding its digital presence, planning to add staff for its YONO 2.0 platform.
Coal India: Experts suggest Coal India is a stock to buy for the long term. The company has been improving coal production and loading efficiency. Coal India is also working to diversify its revenue streams by bidding for solar and wind power plants. However, the company faces challenges, including production issues and declining e-auction premiums. Experts also predict that the share of coal in India's energy mix will shrink in the coming decades, necessitating responsible use of the fossil fuel.
Maruti Suzuki: Maruti Suzuki shares are in focus following analyst rating updates and news regarding production and sales. Goldman Sachs upgraded Maruti Suzuki stock to Buy, while Investec raised its price target on demand outlook. However, UBS lowered its stock price target on cautious outlook. Maruti Suzuki's share price moved up 0.53% recently.
Vedanta: Vedanta is undergoing a significant transformation with its planned demerger into five separate listed entities. The NCLT has approved this demerger, which will split Vedanta into Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and a base metals business under Vedanta Ltd. This move is aimed at unlocking value and allowing each entity to pursue focused growth strategies. Chairman Anil Agarwal has emphasized that dividend payouts will remain a priority across all companies post-demerger. Vedanta is also planning significant investments in its various businesses, including oil and gas, aluminium, and silver production. S&P Global Ratings has upgraded Vedanta Resources' outlook to 'positive'.
Overall Market Sentiment: The broader market experienced volatility recently, influenced by currency fluctuations and mixed global signals. Investors are advised to focus on specific stocks in sectors like auto, banking, pharma, and IT.
