The markets are trending higher, and if you are keen about possible stocks that you could bet on, here are some options from Nomura. The international brokerage house has highlighted a host of stocks from across sectors, starting with a ‘Buy’ on Infosys in tech to M&M in auto. Don’t forget to check their top banking picks in India.
Here is a detailed check on the top ‘Buy’ recommendations from Nomura at this hour-
Nomura on Infosys: Top pick among large cap IT
The Infosys share price has been in focus on the back of its buyback announcement. Nomura has a Buy on the stock with a target of Rs 1,880 per share. The brokerage house reiterated that it is one of their “top picks in the large-cap India IT space.”
They estimate Infosys “to post 3.8% You revenue growth in FY26 in dollar terms.” As per the report by Nomura, the stock is currently trading at 20x FY27 EPS estimates Rs 75.2 and offers an attractive dividend yield of 4.4%.
They estimate the buyback by Infosys to “be largely EPS-neutral in FY26.”
Nomura on Auto sector stocks: M&M top pick
The auto sector stocks are in focus. The Japanese brokerage house, prefers M&M with a Buy rating. The stock is their top pick in the segment. That apart, Nomura also has a Buy on TVS Motor, Hyundai, Ashok Leyland. Some auto component and tyre makers like Motherson Sumi and Ceat have also got Buy recommendations at current levels.
As discussed in their report following the GST cut announcement, price reductions in the range of 3.5-10% should boost demand by 15-20% across passenger vehicles and two-wheelers. They believe that the price drop may act as a catalyst for consumers to upgrade to compact SUVs from hatchbacks. Nomura also pointed out that “diesel cars could gain some share in compact SUVs given the high price drop. Our base case remains that while entry-segment cars and hatchbacks will also see a demand boost in the near term, the long-term trend of consumer preference shifting away from hatchbacks and entry-segment cars is likely to continue after that.”
Nomura on Banks: ICICI Bank, Axis Bank and SBI top picks
Nomura’s top picks among the bank sector stocks include ICICI Bank, SBI and Axis Bank.
They expect stronger unsecured retail growth as asset quality improves. “Credit expansion looks favourable amid the RBI’s policy easing, enhanced liquidity, and tax relief,” they added.
They believe that asset quality in the personal loan segment remained stable across all lender categories and ticket sizes.
Credit card portfolios improved, with fresh delinquencies falling 120 bps YoY and 250 bps QoQ. This, according to Nomura, coupled with moderating growth of personal loans/credit cards are key monitorables. However, now with asset quality showing signs of an improvement, they “expect growth to pick up.”