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As Nifty Bank declined by around 0.80%, Varun Lohchab, Head-Institutional Research, HDFC Securities, shared his analysis on the banking sector

Banks
I think 20-25% return expectations would be a bit too much from a large sector like banking. What we are anticipating is that next year will be better for the banking sector from two perspectives.

From a smaller bank’s perspective, the credit cost will normalise upward, like the credit cost will be better for some of the smaller banks, which saw a lot of pain in FY25, and at the same time, the large banks and overall banking sector will have some NIM pressures, which will lead to overall PAT growth of around 10 to 12% for our coverage universe of the bank.

So, valuations are supportive, so there is some room for PE re-rating. So to expect a 12 to 15% return from banking stocks would be a more reasonable expectation.
We believe the larger banks are better positioned to capitalise on the growth as well as to be able to navigate the volatility and the pockets of stress in terms of credit on the credit side. The liability franchise, the cost of deposits – some of the pain has already been gone through in terms of the NIM compression.

So incrementally, I think beyond FY26, that pain should also subside. So large banks, ICICI, SBI, have been our top picks for quite some time, and even Axis Bank we like. So these three would be the top picks in the banking sector. We are still sticking with the large banks.

Varun Lohchab, Head-Institutional Research at HDFC Securities, favours the pharma and healthcare sectors, highlighting Sun Pharma, Torrent Pharmaceuticals, Eris Lifesciences, and Alkem Laboratories as top picks.

While CDMO companies may face subdued FY26 results, their medium-term growth prospects remain strong.

Overall, pharma and healthcare are promising sectors for the next few years.

The price of VRL Logistics shares went up by almost 13% on Thursday, May 22.

This happened because the company said it made a lot more profit in the last three months of the year.

Read Full Article#FromBloomberg | #OPEC+ discusses another 4.11 lk bpd output hike in July pic.twitter.com/TpVMfQtta4

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



 

India’s market regulator, SEBI, is likely to allow the National Stock Exchange (NSE) to set Tuesday as the official day when its derivatives contracts expire, according to sources who spoke to CNBC-TV18.

Currently, derivatives contracts on the Bombay Stock Exchange (BSE) expire on Tuesdays, while those on the NSE expire on Thursdays.

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SEBI Chairman Tuhin Kanta Pandey said that the regulator will issue directives on expiry dates later this month, following feedback on the consultation paper.

He also affirmed that all pending matters related to the NSE IPO will be resolved soon, allowing progress on the listing.

Markets declined amid weak global cues, with both the Sensex and the Nifty slipping around 1%. Over 45 Nifty constituents ended in the red.#JustIn | #TCS to steer Cloud Migration Program for Finnish Telecom Leader DNA in a 5-yr partnership pic.twitter.com/3jrATBwUBa

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



 

ABB has announced that Steel Authority of India Ltd (SAIL) has entered into a digital transformation partnership with the company.#OnCNBCTV18 | #MahaKumbh & festivities were some of the factors aiding the growth. Have seen traffic coming back in June after a subdued May. Maintaining cost leadership is the key for #IndiGo, fuel prices is an important part of cost

Expect early double-digit growth in capacity… pic.twitter.com/5YnRjn6VI4

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



 

Here are a couple of stock recommendations by Sacchitanand Uttekar, VP of Research-Derivatives & Technicals at Tradebulls:

Buy Bharti Airtel for a target price of ₹1,865 with a stop loss of ₹1,818
Buy Hindustan Aeronautics for a target price of ₹5,290-5,430 with a stop loss of ₹4,990#OnCNBCTV18 | Acquired entity account contribute ₹1,300 cr in FY25 of total revenue. In the short term, we may see some uncertainties due to #tariffs #China’s 30% tariff remains high compared to India, giving India a relative edge. All customers asking co to bear some part of… pic.twitter.com/18NFKL7wyK

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



 

The Initial Public Offering, or IPO, of Belrise Industries has been fully subscribed.

The total subscription stands at 1x

QIB: 0.4x

NIIs: 2.6x



SEBI may soon issue a circular regarding index expiry days for exchanges.

NSE is believed to have proposed Tuesday as its expiry day, and SEBI is likely to consider the request.

Alert: NSE did not comment on CNBC-TV18’s query.
Alert: SEBI has also not responded to CNBC-TV18’s query.

#OnCNBCTV18 | Do see some bull market characteristics, think we are headed significantly higher

Risk-reward not justified in PSU railways and defence, attractive in real estate, can see 20% upside hereon

Gautam Shah, Founder, Goldilocks Global Research to CNBC-TV18 pic.twitter.com/UpxOcPsIOv

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



 

Bajaj Auto announced it is extending a ₹4,365 crore loan to KTM, which will be placed in an Escrow account for KTM’s creditors.

Additionally, Bajaj Auto International Holdings will convert ₹1,455 crore worth of Pierer Bajaj bonds.

As the Indian trading scene vies to hold in the red wave, here are some shares you may want to Buy/Sell, according to Soni Patnaik of JM Financial Services.

Buy Indian Hotels for a target price of ₹790-800 with a stop loss of ₹758
Sell Grasim Industries for a target price of ₹2,630 with a stop loss of ₹2,720



Dipan Mehta, Director of Elixir Equities, said selling IndusInd Bank shares is no longer advisable, and investors should stay patient for a long-term recovery.

He stated that many banks, including Bandhan Bank, RBL Bank, Axis Bank, and ICICI Bank, have faced issues but eventually bounced back, and IndusInd is stronger than most. Despite bad loans, the bank has good technology and a strong network.

Mehta highlighted the need for new, dynamic leadership to improve the business and expects the stock to deliver good returns in three to four years.

Despite being a ‘consensus buy’, Power Finance Corporation (PFC) could still gain up to 60% based on the most optimistic target price.

The stock is currently down nearly 2%, trading at ₹406.65.

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TD Power Systems sees a large block deal as 1.3 crore shares, or 8.1% equity, change hands.

The stock is down 5.51% at ₹466.30.

 #JustIN | #GardenReach becomes the lowest bidder for a construction project worth Rs 25,000 cr for Next Generation Corvettes for the #IndianNavy

The lowest bidder will be awarded five (05) NGC ships at a likely value of more than ₹25,000 crores, co said pic.twitter.com/I25uLGcrms

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



Digant Haria from GreenEdge Wealth Services said that IndusInd Bank’s current valuation looks reasonable.

If the next Managing Director comes from a strong private banking background, the stock is likely to go up.

He also believes that within the next six months, the stock will offer good trading opportunities.

#CNBCTV18Market | #IndusIndBank recovers more than 4% from opening lows https://t.co/w1owzMZluJ pic.twitter.com/MOdtX8LrTm

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



 #CNBCTV18Market | Market opens with minor cuts on weak global cues, Nifty below 24,700 pic.twitter.com/G2R0YGM2qP

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



 

Fook Hien Yap from Standard Chartered Bank told CNBC-TV18 that the 10-year US Treasury yield is likely to stay between 4% and 4.2%.

He believes the outlook for stock markets is still positive.

He also said they are investing more in gold to protect against the risks of inflation and recession.



IndusInd Bank shares are expected to react after the lender reported its first net loss in two decades, triggering downgrades and target price cuts by analysts.

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The Indian Rupee opened slightly higher against the US dollar on Thursday.#RupeeCheck | Rupee opens at 85.59/$ vs Wednesday’s close of 85.64/$ pic.twitter.com/sPKrGhOF0k

— CNBC-TV18 (@CNBCTV18Live) May 22, 2025



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