Samvat 2083 opened cautiously following an external energy shock from the West Asia conflict, which drove Brent crude past $100 per barrel and pushed September CPI inflation to 5.54%. In response to these pressures, the central bank implemented a 25 basis points repo rate hike to 5.50%. Despite the tightening environment, JM Financial selected 10 resilient companies, led by Gravita, which offers the highest projected return of 34% with an Rs 1,800 target price based on recycling capacity growth.
Key points
Persistent energy shocks and higher repo rates have introduced cautious sentiment across…: Persistent energy shocks and higher repo rates have introduced cautious sentiment across the market.
Strategic sector leaders in defense, telecom, and recycling offer potential upsides of up…: Strategic sector leaders in defense, telecom, and recycling offer potential upsides of up to 34%.
Companies like Bharti Airtel and Eternal are well positioned to capitalize on shifting co…: Companies like Bharti Airtel and Eternal are well positioned to capitalize on shifting consumer habits and declining capital expenditures.
Sources checked by our analysis pipeline: 1
Samvat 2083 has begun on a cautious note, with an external energy shock weighing on market sentiment despite the resilience of the domestic economy. The West Asia conflict has kept Brent crude prices above $100 per barrel, pushing CPI inflation to 5.54% in September and prompting a 25 basis points repo rate hike to 5.50%. However, JM Financial has picked 10 stocks with strong upside potential to buy this Diwali.
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2/11
ICICI Bank
With a target price of Rs 1,710, JM Financial forecasts 24% upside from current levels. Bank continues to deliver sector-leading loan growth, healthy fee traction and best-in-class asset quality, while nearterm NIM pressure from FCNR(B) should ease as surplus liquidity is deployed from Q4FY27. Management expects NIMs to moderate further in Q3FY27, with recovery expected from Q4FY27, even without further rate hikes.
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3/11
Bharat Electronics
With a target price of Rs 485, the brokerage forecasts over 30% upside from current levels. BEL remains well positioned to benefit from several large strategic defence programs, including QRSAM, NGC, P-75I, Next Generation Corvettes, Project Kusha, AMCA, HAMMER,…
Investor enthusiasm returned to the renewable power producer following a sharp earnings beat fueled by rapid commercial energy adoption. Robust demand across the industrial segment helped boost margins and underpinned aggressive medium-term operational expansion plans. Macquarie affirmed a positive outlook with a ₹1,700 price target as the firm works to capture additional corporate green power share.
Mounting macroeconomic pressures, including climbing U.S. bond yields, dollar volatility, and broad profit-taking, have triggered steep sell-offs across precious metal markets. Despite this sudden downturn, long-term structural demand remains underpinned by robust central bank reserves, geopolitical instability, and industrial needs. Analysts suggest this pullback has pushed both assets into oversold conditions, potentially favoring patient buyers who space out their market entries.
Projected legislative control by Democrats sparked widespread risk-off sentiment across international financial markets, dampening the greenback alongside equities and fixed-income returns. Investors are heavily discounting the prospect of stringent regulatory policies targeting artificial intelligence, major technology firms, and financial institutions. Consequently, sectors exposed to defense spending and semiconductor infrastructure face mounting headwinds as policy trajectories shift.