Indian stock markets present a mixed bag for investors as we enter the new year, with several key players exhibiting unique trajectories. Here's a look at some stocks to watch:
HDFC Bank: The largest private sector bank is showing signs of recovery after a period of subdued growth following its merger. For the December 2025 quarter, HDFC Bank posted an 11.9% year-on-year loan growth, signaling a strong rebound. Deposits also grew 11.5%, and the bank's credit-to-deposit ratio is nearing 99.5%. Trading near its 10-year valuation lows, the stock presents an attractive proposition for investors. However, HDFC Bank shares may experience a gap-down opening due to a significant drop in its American Depositary Receipts (ADR) by 6.33%. Despite this, analysts maintain a positive outlook, with 46 out of 48 analysts tracking the company recommending a 'buy' rating.
Trent: The retail arm of the Tata group, saw its standalone revenue grow by 17% in the third quarter. Trent has been rapidly expanding its store network, reaching 1,164 stores as of December 31, 2025. The company clarified to the stock exchanges that it was unaware of any undisclosed developments affecting share performance after an inquiry regarding significant movement in its share trading volume.
Axis Bank: India's third largest private lender reported a 14% jump in its gross advances and a 15% rise in total deposits in the December quarter. However, the bank's net profit declined 26% to ₹5,090 crore, impacted by a one-time provision for crop loans. Despite the profit dip, shares of Axis Bank Ltd. closed with a 1.55% gain, indicating investor confidence in the underlying operational growth.
Adani Power: JM Financial initiated coverage on Adani Power with a 'Buy' rating, setting a target price of Rs 178 per share, implying a potential upside of 22.8%. The brokerage's optimism stems from the company's strong execution capabilities, dominant position in the thermal power space, and the robust demand outlook for power in India. Adani Power is targeting a capacity of 41.9 GW by FY32.
Dabur: The FMCG giant has reported early signs of demand recovery in its third quarter, attributing the uplift to recent Goods and Services Tax (GST) rate adjustments and improving trade sentiment. Dabur anticipates mid-single digit revenue growth for the quarter, with rural markets outperforming urban ones. The company projects stronger profit growth than revenue, driven by robust performance in key segments like Home and Personal Care.
ONGC: Shares of Oil & Natural Gas Corporation (ONGC) are expected to be in focus following a gas leak incident in Andhra Pradesh and a joint venture with MOL, Japan. ONGC will hold a 50% equity stake in each of the two JV entities, with the remaining 50% being held by MOL. Concerns regarding the implications of US military actions in Venezuela, where ONGC has significant oil and gas assets, have also impacted the stock.
Torrent Pharma: The company's board has approved raising up to ₹12,500 crore through secured, rated, listed, redeemable non-convertible debentures on a private placement basis. This fundraising initiative follows the company's major acquisition announcement from June last year, when it planned to acquire a majority stake in J B Chemicals and Pharmaceuticals. ICRA Limited has reaffirmed Torrent Pharmaceuticals' credit ratings, maintaining its strong financial standing.
Market Overview: Indian equities ended lower on Monday, with Nifty down 78 points and Sensex slipping 322 points. IT stocks and HDFC Bank led declines amid concerns over U.S. tariffs and rising funding costs. The market is cautiously optimistic with global cues.
