ET NEWS

With Nifty and Sensex trapped in a year-long consolidation phase where headline indices have barely budged, bulls are regrouping as valuations turn reasonable and the Street eyes double-digit earnings growth in FY27, prompting brokerages to unveil more than 50 stock picks for Samvat 2082 beginning Diwali next week.The mood is shifting decisively toward autos, consumer durables, power, financials and manufacturing stocks, even as IT emerges as the biggest contrarian call amid growth slowdown and multiple threats from the Trump administration. Market insiders are also ramping up allocations to gold and silver as precious metals' breathtaking rally leaves many favorite stocks trailing."During Samvat 2082, post consolidation of last 12 months, we expect Indian equities to shed it's underperformer tag and is likely to deliver better returns backed by (a) 2-digit earnings growth in the backdrop of subdued crude oil prices; (b) likely optimum trade deal between US-India coupled with India diversifying its export basket; (c) shift of money flow from safe haven to EMs like India and (d) likelihood of further reforms by government to accelerate economic growth," SBI Securities said.The valuation reset has been dramatic. In September 2024, the Indian market commanded a hefty 97% premium to emerging market peers. Following the recent correction, the current 49% premium appears more palatable and offers a relatively attractive entry point when viewed against historical valuations, analysts say."The government has pivoted from capex-oriented growth to consumption-led growth, and the Indian market is in a phase of adjustment to this new normal. Based on these dynamics, we believe the earnings weakness is nearing its bottom, with a broad-based recovery expected to begin from Q3FY26 onwards," said Neeraj Chadawar of Axis Securities.Also Read | Nifty gives zero returns in a year: 3 tests reveal whether to be greedy or fearful this DiwaliThe real kicker could come in FY27 when the full impact of GST 2.0 reforms is likely to reflect in the economy, driving sustained pickup in consumption demand across sectors. "On the back of these expectations, double-digit earnings growth is projected for FY27, which could translate into double-digit market returns as the recovery in corporate earnings gains traction," Chadawar added.While risk-reward is slowly building toward mid and smallcaps, recovery is expected to be gradual as Samvat 2082 progresses, he cautioned.Top stock ideas from brokerages for Diwali 2025:ICICI Direct's Diwali Picks: HDFC Bank, Credit Access Grameen, L&T, AIA Engineering, Allied Blenders, Kaynes Technology, Data Patterns, Greenlam Industries.SBI Securities' Portfolio: HDFC Bank, TVS Motor, Apollo Hospitals, Indian Bank, Ashok Leyland, Jubilant Foodworks, Nalco, NSDL, Azad Engineering, Orswal Pumps, Subros, Indian Metals & Ferro Alloys, Fiem Industries, Swaraj Engines, Pondy Oxides.Geojit's Selection: SBI, Infosys, HUL, Maruti Suzuki, Axis Bank, UltraTech Cement, Tata Consumer, Hero MotoCorp, Suzlon Energy, Brigade Enterprises, Can Fin Homes, HG Infra Engineering.Axis Securities' Picks: Kotak Mahindra Bank, Federal Bank, JSW Energy, Coforge Ltd, DOMs Industries, Chalet Hotels, Rainbow Children's Medicare, Minda Corp, KEC International.Anand Rathi's Choices: Avenue Supermarts, Tilaknagar Industries, BSE, Fiem Industries, Shakti Pumps, Blackbuck.Ventura Securities' Bets: Ambuja Cement, Royal Orchid Hotels, Adani Green, Paytm, V-Mart Retail, Capri Global, HCC, Transformers & Rectifiers.The diverse picks across market caps and sectors reflect brokerages' conviction that after a year of going nowhere, Indian equities are poised for a breakout as fundamentals align with more rational valuations.How to invest in Samvat 2082?After a year of consolidation amid global volatility, the market setup now looks balanced and the earnings downgrade cycle appears largely over, with improving domestic fundamentals providing a more stable outlook."Going forward, the next market move will depend on external triggers, particularly developments related to the US tariff policies on India, where a resolution could boost sentiment and drive markets higher. With this backdrop, investors should adopt a multi-cap strategy—maintaining a core allocation to largecaps for stability and fair valuations, while taking selective midcap exposure where earnings visibility and recovery prospects are strong. Diversification across sectors remains key to balancing risks and capturing growth opportunities across the economy," said Gautam Sinha Roy, Chief – Equity and Fund Manager at ICICI Prudential Life Insurance.Domestic brokerage firm ICICI Securities has set a target of 27,000 for Nifty over the next year, reflecting optimism about the improving growth outlook."With improving growth outlook amid greater purchasing power in the hands of consumers through income tax & GST rate cuts as well as government's relentless focus on increasing manufacturing GDP through policy reforms, we remain positive on markets. With the rest of the asset classes, namely global equities, debt, precious metals (gold, silver) delivering healthy returns in the recent past, the stage is all set for domestic equities to outperform peers going forward," ICICI Securities said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Mumbai: Investors in LG Electronics India's Rs 11,607 crore initial public offering (IPO) could be in for a strong opening on Tuesday. Analysts said cheaper valuations and strong business prospects, which ensured the company's IPO was the most subscribed to in 2025, are likely to drive appetite for the stock."The issue was valued cheaper compared to its peers and the company is debt free, while its return ratios are also strong. The indications are listing gains of 30-35%," said Prathmesh Masdekar, research analyst, StoxBox.LG's grey market premium (GMP) - the price in unofficial market that investors pay for the shares before listing - was at ₹360 Monday, a 31.6% premium to the IPO price of ₹1,140. The premium has, however, dipped from ₹395 on Friday."Given the weak sentiment and profit booking in the broader market today, there was a slight decline in the GMP for LG Electronics," said Sneha Poddar, vice-president-Equity Research, Motilal Oswal Financial Services. "However, the IPO is priced well with enough on the table for investors which is driving the strong investor interest and is indicating a strong listing."Poddar said the company is priced at about 35 times Price to Earnings while the peers are trading between 55 and 60 times.LG Electronics' IPO was subscribed 54.02 times. The issue received the second-highest-ever bids after Reliance Power's mega offering in 2008, among IPOs that have raised over ₹10,000 crore.“If the listing is exceptionally high, there could be profit booking, but if the listing is at around 15-20% then the valuation discount can justify the gains,” said Narendra Solanki, head of Fundamental Research — Investment Services, Anand Rathi Shares and Stock Brokers.Institutional investors showed the strongest appetite in the LG IPO, with the category putting bids for 166.5 times the shares set aside for them. While the retail investor category was subscribed 3.55 times, the non-institutional or high net worth investor category was subscribed 22.45 times. “LG Electronics is poised for a listing pop of around 30-35% driven by the combination of MNC parentage, reputed brand, strong return ratio profile and diversified range of consumer electronics products across key categories like television, air conditioners, refrigerators and washing machine,” said Jaymin Trivedi, research analyst, ICICI Direct.

Mumbai: Tata Capital, the non-banking finance arm of the Tata Group, made a modest market debut with the stock listing at ₹330 on Monday, a 1.2% premium to the IPO price of ₹326. The muted opening was in line with expectations and the broader trend of various large IPOs struggling to make a strong market entry in recent years, unlike some of the smaller peers.The stock ended at ₹331.1 on Monday with a market capitalisation of ₹1,40,547.61 crore. The company's revenue in FY25 stood at ₹28,324 crore.The market cap of Bajaj Finance, the country's largest NBFC, was ₹6,46,516 crore on Monday. Its FY25 revenue was ₹69,709 crore.124540527Many analysts had recommended against subscribing to the IPO - the largest in 2025 - citing rich valuations. "At its IPO price, Tata Capital's valuations left limited value on the table for those looking for a listing day pop," said Raj Gaikar, research analyst at Samco Securities. "The stock is likely to remain largely range-bound in the near term."Tata Capital trades at a discount to Bajaj Finance but commands a premium over Shriram Finance and L&T Finance because of the Tata brand, said Gaikar.Tata Capital’s price-to-book value (P/BV) is at 4.1 times, compared with Bajaj Finance’s 6.6, Cholamandalam Investment & Finance Company’s 5.7, HDB Financial Services’ 3.9 and Shriram Finance’s 2.2. JM Financial, which initiated coverage on Tata Capital with an ‘Add’ rating and price target of Rs 360, said the stock should trade between the valuations of Cholamandalam and HDB Financial. Tata Capital’s Rs 15,512 crore IPO, the largest since Hyundai Motor India’s Rs 27,870 crore issue last year, was subscribed 1.95 times.Out of the eight IPOs over Rs 10,000 crore since 2020, four — including Tata Capital, HDB Financial Services, Swiggy and NTPC Green Energy — have listed above their issue price, posting gains of 1% to 13% on debut, ETIG data showed. Hyundai Motor India, Life Insurance Corporation of India, One 97 Communications (Paytm) and SBI Cards & Payment Services listed at a discount in the same range for their IPO investors.

London: Vijay Mallya, wanted in India to face trial on fraud and money laundering charges, has discontinued an application to annul a UK bankruptcy order ahead of a planned hearing in London on Monday.It means the "Trustee in Bankruptcy" can continue to pursue assets to help a consortium of banks led by the State Bank of India (SBI) realise the repayment of an estimated judgment debt of around 1.05 billion pounds owed by the 69-year-old's now-defunct Kingfisher Airlines.A High Court hearing to set the directions for the annulment application to be heard was vacated after Mallya's legal team filed a notice of discontinuance last week."Vijay Mallya's Trustee in Bankruptcy will be able to continue with their work in investigating and realising assets falling within his bankruptcy estate without any hindrance that this application might have caused them," UK law firm TLT LLP, representing the banks, said in a statement.It follows High Court Judge Anthony Mann's ruling in favour of the banks back in April to uphold the bankruptcy order dating back over four years."The bottom line in relation to this is that the bankruptcy order stands," Justice Mann had concluded.Mallya, meanwhile, was pursuing a separate annulment application through his lawyers Zaiwalla & Co. against the 2021 bankruptcy order on the basis that the banks' debt had already been recovered in India. It is believed to have been discontinued as an Indian writ petition, compelling banks to provide information as to the recoveries made by them, has not progressed. Proceedings in India are seen highly material to the adjudication of any annulment application before the English courts and indications are a fresh bankruptcy annulment application could be made at a later date. The case dates back to 2017, when the banks registered the Indian Debt Recovery Tribunal's (DRT) judgment in the English courts, which pertained to a personal guarantee Mallya had provided in relation to loans made to Kingfisher Airlines. The banks then served Mallya with a bankruptcy petition in September 2018, which he opposed on multiple grounds.The hearings in the case of SBI and Others date back to May 2018, when the banks were granted a worldwide freezing order based on the DRT judgment. Since then, there have been a series of hearings in this case, which led to a bankruptcy order against Mallya on July 26, 2021. Separately, in relation to India's extradition request, Mallya remains on bail in the UK while a "confidential" legal matter believed to be related to an asylum application is resolved.

Market regulator Sebi on Monday issued fresh guidelines on minimum information that listed companies are required to provide to their audit committees and shareholders to get related party transaction (RPT) approval. Under this, companies are required to explain why the transaction is in the interest of the listed entity, provide valuation or external reports if relied upon, indicate the percentage of the counterparty's annual turnover represented by the transaction (on a voluntary basis), and include any other relevant details for review by the audit committee for approval of a proposed RPT.While seeking shareholder approval, the explanatory statement needs to summarise information shared with the audit committee, justify how the transaction benefits the company, disclose details of any loans, advances, or investments involved, and confirm that any valuation or external report will be accessible to shareholders via their registered email, Sebi said in its circular.The companies are required to disclose this information to audit committees and shareholders while placing any proposal for review and approval of an RPT.The circular would become effective immediately, it added.Additionally, Sebi relaxed disclosure norms for smaller RPTs, those not exceeding 1 per cent of the company's annual consolidated turnover or Rs 10 crore, whichever is lower -- whether individually or combined with prior transactions in a financial year. These smaller transactions will be exempted from the detailed requirements.This came after the board of Sebi in September approved a proposal for relaxation in the minimum information to be provided to the audit committee and shareholders for the approval of RPT.