Indian Equity market sentiment looks subdued and uneven, with widespread sectoral pressure outweighing isolated buying interest. Weakness can be seen across banking, consumer-oriented, and rate-sensitive stocks, reflecting a cautious risk among investors. Although defensive and public sector–related stocks are offering medium support, the strength remains limited. Overall, investors appear selective and risk-conscious, choosing to stay on the sidelines while awaiting clearer macroeconomic direction and more supportive global signals.
As per ICICI Securities their view are positive on Havells although the near-term outlook is likely to be soft due to weak demand for air conditioners and potential impact on earnings due to change in BEE norms in Jan’26 in fans and air conditioners. We note: (1) RAC trade inventory has materially reduced post the festive season but still remains elevated YoY. (2) Secondary sales in RAC and fans may remain weak in Q3FY26. However, channel stocking can happen on the back of pricing arbitrage due to new BEE norms in last week of Dec’26. (3) Impending price hikes could offset the GST benefits. Price hike is likely to be in mid-high single digits in our view considering commodity inflation and change in BEE norms. (4) It consciously tapered discounts/freebies in RAC to protect margins.
Company Maintain BUY with a DCF-based revised TP of INR 1,725 (earlier INR 1,775); implied P/E of 46x FY28E EPS. We also note 20% stock price correction over past 12 months due to multiple transitory issues also offers attractive entry point for long-term investors.
Where as ICICI Direct shares Key Monitorable for Next Week
Bank Nifty along with revival in IT and Oil & Gas would drive index higher as it carries >55% weightage in Nifty
Broader Market: With previous week’s sharp recovery index has formed a hammer like candle in the vicinity of lower band of falling channel. In addition to that, the market breadth has seen improvement as % of stocks above 200 day-SMA have gained to 50% from last week’s reading of 46%, indicating impending pullback going ahead.
Commodity Update: MCX Silver prices continues to outperform and breached INR 200,000 per kg mark first-time ever. The US Dollar index has retreated from 100 levels and now trading around 98 levels. Decline in dollar index has fueled rally in Copper (Trading at All Time High on MCX) while Aluminium is resolving out of 3 years base.
