HEROMOTOCO.NSE

Hero MotoCorp Ltd

India's Q2 GDP growth of 8.2% initially propelled Nifty and Sensex to record highs, but selling pressure in pharma and financial stocks led to a decline. Technical analysts suggest a close above 26,300 is crucial for renewed bullish momentum. Several stocks like ITC, Voltas, and Bajaj Housing Finance are in focus due to specific news developments.

Independent market analyst Ambareesh Baliga says the upcoming India–US trade deal could be the key trigger to push markets beyond all-time highs and revive beaten-down midcaps and smallcaps. He remains bullish on autos—especially Maruti, Hero MotoCorp and TVS—and sees a realty rebound led by Navi Mumbai, favouring Godrej Properties and Arihant Superstructures as sales momentum strengthens.

Ola Electric Mobility Ltd.’s blockbuster initial stock offering last year had investors clamoring to buy over four times the number of shares publicly available. Now, it’s struggling to find backers despite a new bet on home battery storage.Beset with shrinking market share, relentless cash burn and a nearly 53% plunge in share price this year, the SoftBank Group Corp.-backed electric scooter maker has been turned down by multiple financiers in recent months, said people familiar with the matter who did not want to be identified as the discussions were private. Talks with some investors are ongoing, they added. Investors are balking at joining the company’s new 15-billion-rupee ($168 million) fundraising plan given the Indian EV maker’s deteriorating sales and financial health. Lenders have also shied away from a 17-billion-rupee debt-raise plan that was approved by the company board in May, the people said.Now, Chairman and Founder Bhavish Aggarwal is pinning his hopes for a quick turnaround on a plan to sell batteries to homeowners in need of a backup power source.The pivot comes after the loss-making firm saw a 43% drop in revenue and 47% plunge in sales in the latest quarterly results this month, underlining the scale of Ola’s troubles.

India’s equity benchmarks closed marginally lower on Friday due to profit booking after U.S. jobs data dampened hopes of an imminent rate cut, but still logged weekly gains on improving earnings outlook. The Nifty 50 fell 0.47% to 26,068.15, while the BSE Sensex lost 0.47% to85,231.92on the day, having approached record high levels in the previous session. The Nifty and Sensex rose about 0.6% and 0.8% each this week, settling less than 0.9% below their September 2024 all-time highs. Seven of the 16 major sectors logged weekly gains, with IT index adding 1.6%, led by a 2.8% rise in Infosys on a 180-billion-rupee share buyback, which began on Thursday. Auto index gained 1.1% this week, helped by Eicher Motors’ and Hero MotoCorp’s 6.6% and 8.4% jump on upbeat quarterly results. “Despite the profit booking near record high levels, markets have support from firm earnings and cooling FPI selling, and India-U.S. trade deal could trigger a breakout rally,” said Kranthi Bathini, director of equity strategy at Wealthmills Securities. “India’s distance from the overheated global AI trade also makes it a valuation hedge and gives it a shot at outperforming Asian and emerging peers in the near term,” Bathini said.

Brokerages are bullish on Adani Enterprises, Hero Motocorp, and Reliance Industries, citing strong growth drivers and market positioning. HDFC Bank's loan growth and margins are expected to stabilize. NSDL, a steady play on India's capital market growth, is valued at a premium, with market momentum being a key factor.