Indian equity markets are experiencing widespread weakness today, with sharp selling pressure across major sectors including financials, metals, technology, and real estate. The market sentiment is heavily characterized by caution, driven by profit-taking and heightened risk aversion amidst uncertain near-term global market cues. Defensive segments like consumer and healthcare stocks are showing marginal, relative resilience against the broad-based decline.
Despite the cautious environment, specific stocks are seeing differentiated views from brokerages.
Tata Power (TPWR) maintains a ‘BUY’ rating from ICICI Securities, with an unchanged target price of ₹465. The stock’s performance in Q2FY26 was muted, primarily stifled by a temporary shutdown of its 4GW coal-based power plant, a direct consequence of an impasse over the Power Purchase Agreement (PPA).
However, the management used the analyst meet to project confidence, assuring investors of a swift resolution and the resumption of operations at the plant. Beyond the PPA issue, the company highlighted several strategic growth areas:
- Transmission Ambition: Enlisting in bids for High Voltage Direct Current (HVDC) opportunities.
- Solar Manufacturing Scale-Up: Planning a significant expansion of its solar manufacturing footprint through a 10GW ingot and wafer facility.
- Distribution Opportunities: Exploring new avenues in power distribution through potential privatization or parallel licensing initiatives, driven by proposed reforms.
Also read: Weak Global Cues Weigh on Indian Market Sentiment
The company also showcased its technological advancements by arranging a visit to its Odisha Distribution Technology Centre and its unmanned distribution GIS sub-stations. The unchanged Buy rating suggests that the Q2 setback is viewed as temporary, with the long-term growth story remaining intact.
Conversely, ICICI Direct has issued a ‘SELL’ recommendation for Bharat Dynamics Limited (BDL), targeting ₹1,330. The brokerage notes that the defense stock failed to recover despite a slight rebound in the headline index, recording its lowest weekly closing since May. The rationale for the sell call is based on continuously increasing short open interest, suggesting expectations of further weakness. Significant Call writing at ATM and OTM strikes indicates limited upside, and a breach of the highest Put base at ₹13,000 could trigger a sustained decline towards the target price of ₹1,330.
