Multiple global and domestic brokerages have released comprehensive investment views on major Indian companies across key sectors, presenting a mixed outlook amid regulatory challenges and evolving market dynamics. The recommendations cover pharmaceuticals, telecom, internet platforms, banking, metals and consumer sectors, alongside broader commentary on India's economic trajectory.

Pharmaceutical Sector Faces Regulatory Headwinds

Morgan Stanley has highlighted mixed regulatory risk profiles across major pharmaceutical companies, with particular concerns for Cipla, Dr Reddy's Laboratories, and Sun Pharma. The brokerage identifies Cipla's lanreotide as the most at-risk product, while Sun Pharma faces compliance risks at its generic injectable facility. However, Sun Pharma's focus on specialty products is expected to limit earnings risk.

Jefferies maintains a more optimistic view on the pharma sector, upgrading Entero Health to Buy with a target price of ₹1,320.00 and maintaining Buy ratings on several companies including Mankind Pharma, Ajanta Pharma, and Sun Pharma. The brokerage expects the sector to deliver double-digit revenue growth with stronger momentum in H2 CY26.

Technology and Internet Platforms Under Pressure

Citi has maintained a Sell rating on Info Edge with a target price of ₹1,300.00, citing concerns over GenAI-related disruption and weak IT hiring outlook. Despite steady billings growth in Q3, the brokerage remains cautious about the company's medium-term prospects. Non-recruitment verticals continue to face competitive pressure, though growth and profitability are gradually improving.

Morgan Stanley's coverage of India's internet sector reflects ongoing challenges, with earnings downgrades expected to continue across companies including Eternal, Swiggy, and Delhivery. The brokerage anticipates further consensus estimate cuts due to slower growth and increased competition.

Banking and Financial Services Show Resilience

Bank of America maintains positive ratings on major private banks, with Buy recommendations for HDFC Bank (target price ₹1,175.00) and ICICI Bank (target price ₹1,750.00). The improving growth outlook and healthy earnings expectations support these ratings, despite risks of further rate cuts.

However, Citi maintains a Sell rating on ICICI Lombard with a target price of ₹1,710.00, flagging concerns over risk-adjusted growth amid elevated competitive pressure in the insurance sector.

Telecom Sector Positioned for Growth

Jefferies presents an optimistic view of the telecom sector, maintaining Buy ratings on both Bharti Airtel (target price ₹2,760.00) and Indus Towers (target price ₹510.00). The brokerage views 2026 as a year of growth and re-rating for the sector, with potential catalysts including Jio's IPO and expected tariff hikes around June 2026.

Economic Outlook Remains Constructive

Brokerages maintain a generally positive view on India's economic prospects, with the first advance estimate pegging FY26 real GDP growth at 7.40% year-on-year. Morgan Stanley expects growth to exceed official estimates, supported by buoyant high-frequency indicators and policy impetus. Nomura remains optimistic about FY27 growth prospects, projecting 7.10% GDP growth driven by policy easing, low inflation, and potential improvements in trade relations.

The mixed brokerage views reflect the complex investment landscape across Indian markets, with sector-specific challenges balanced against broader economic resilience and structural reform momentum.

Multiple brokerages have released comprehensive sector views and stock recommendations, with cigarette taxation concerns dominating ITC coverage while positive outlooks emerge for quick-service restaurants and capital goods.

ITC Faces Widespread Downgrades on Tax Concerns

The cigarette major received predominantly negative coverage from brokerages following steep excise duty hikes. The tax increases have prompted significant target price cuts and rating downgrades across the board.

The excise duty on filter cigarettes has been raised to ₹2,100-8,500 per thousand sticks depending on length, representing increases of 20-65% across categories. Most brokerages expect this to necessitate price hikes of 25-35% to maintain margins, potentially leading to significant volume declines and consumer down-trading to cheaper variants.

DAM Capital and Macquarie maintained Buy and Outperform ratings respectively, though both cut target prices. DAM Capital expects the adverse volume impact to become visible from Q1FY27, while building in 7% volume de-growth for FY27. Macquarie noted that moderating leaf tobacco costs could offer some margin cushion despite growth concerns.

Devyani International Gains Positive Coverage

The quick-service restaurant operator received encouraging assessments from brokerages focusing on merger synergies and growth prospects.

Emkay emphasized that merger and brand negotiations are expected to deliver sizable scale and synergies, with the combined entity having similar scale and growth prospects as Jubilant FoodWorks. The brokerage estimates significant cost savings at around 15% of combined EBITDA, with shareholders of both companies expected to benefit equally from synergies.

Capital Goods Sector Receives Strong Support

Jefferies maintained a constructive stance on the capital goods sector, expecting infrastructure and industrial capex CAGR of 10% over FY26-29 versus 6% over FY24-26.

The brokerage highlighted power transmission & distribution and defence capex as remaining strong drivers. Siemens Energy is expected to benefit from operating leverage and robust power capex pipeline, while HAL offers five-year growth visibility driven by indigenisation initiatives.

Broader Market Strategy and Pharma Updates

Morgan Stanley expects earnings to beat expectations with scope for further government reforms and potential US trade deals. The firm remains overweight on lenders and discretionary consumption, noting that India's relative valuations have corrected meaningfully and may have troughed in October.

In pharmaceuticals, Jefferies noted that Zydus remains confident of growing US revenues in FY27 despite a high FY26 base, while Emcure is well-placed to deliver low double-digit revenue growth with EBITDA margin expansion. JPMorgan maintained an Underweight rating on Dr Reddy's Laboratories with a target price of ₹1,170, citing regulatory setbacks that delay entry into the US biosimilars market.

Citi set a December 2026 Nifty target of 28,500, implying 10% upside, with optimism hinging on financial sector earnings recovery driven by bottoming NIMs and faster credit growth.