U.S. TREASURY SECRETARY BESSENT SAYS THE 10-YEAR YIELD NEVER LOOKED BACK AFTER THE SEPTEMBER 2024 FED CUT, AND THAT, AS WARSH SAID, BONDS HAVE DONE A LOT OF TIGHTENING FOR THE FED

U.S. TREASURY SECRETARY BESSENT REPEATS THAT THERE IS A BIG CORRELATION BETWEEN YIELDS AND OIL PRICES, AND SAYS “OPERATION OUTCAST” ON IRAN IS SUCCEEDING

U.S. TREASURY SECRETARY BESSENT SAYS IRAN IS NOT ABLE TO GET DOLLARS AND FUNDING FOR ITS PROXIES IS GOING DOWN

U.S. TREASURY SECRETARY BESSENT SAYS HE DOES NOT THINK AI BORROWING IS PROBLEMATIC AT ALL AND DOES NOT SEE WIDENING SPREADS ON AI-ISSUER DEBT AS PROBLEMATIC, ADDING THE U.S. IS STILL SEEING DEALS GET DONE AND THAT META IS FINANCING WITH EQUITY

U.S. TREASURY SECRETARY BESSENT SAYS FRANCE HAS A TOUGH HAND

FED'S WARSH: WE'VE DECIDED TO CHANGE FOMC SCHEDULE NEXT FALL

8 MEETINGS IS RIGHT NUMBER A YEAR

ONE MEETING WILL NOT HAVE A VOTE ON POLICY RATE

ONE MEETING WILL BE FOCUSED ON STRATEGY

FED'S WARSH: EXPECT IN 2028 TO HAVE 6 POLICY-SETTING MEETINGS

Sectors To Watch

Power Stocks-Power demand surges 21% YoY in October till 25th, aided by low base

DCM Shriram, Chemplast, DCW-Recommendation for Duty on PVC Resin Imports from China

Apollo Hospitals Medanta Max Healthcare Artemis HCG-(Negative)-NPPA revises prices of 543 anti-cancer drug formulations

Shakti Pumps, Tiger Logistics, Aurum PropTech-Promoter buying

Q2 Earnings-Good-Bandhan Bank, Satin Credit, Sudeep Pharma, Meesho, Gokul Agro, Gulf Oil, Aeroflex , IIFL Capital, TVS Holdings, Elantas Beck, OneEMI Tech, ACME Solar, Infobeans, RR Kabel

STOCKS WATCHLIST

POSITIVE

Titagarh Rail Systems-Rs 1,717 cr wagon order from Railways Ministry

Fortis Health-Acquires 110-bedded Bengaluru Hospital for Rs 277 Cr

Polycab-MSCI defers exclusion

Hexaware Tech- Vivek Jetley appointed CEO

Infosys- Order from Canada's UNI Financial

Subros-Sets up greenfield Mfg plant in Haryana

Awfis Space-Launches 1.45 Lk Sq Ft of premium workspace

EPACK Prefab Tech-Commences commercial production at Rajasthan

Shakti Pumps, Tiger Logistics, Aurum PropTech-Promoter buying

NEGATIVE

Apollo Hospitals, Medanta, Max Healthcare-Anti-cancer drug price cuts

HD Fire Protect-Maharashtra Pollution Control Board adverse ruling

A-one Steels, Moneyview, Armee Infotech-Lockin Expiry

CITI ON JSW ENERGY

• Rating: BUY | Target Price: ₹650

• Q2 EBITDA ↑21% YoY, beating estimates by 16%.

• Power generation ↑17% YoY.

• Strong merchant realisations continue to support profitability.

• Renewable capacity additions expected to drive future growth.

• Transmission constraints and higher interest costs remain key risks.

JEFFERIES ON CHOLA FINANCE

• Rating: BUY | Target Price: ₹1,960 (Earlier ₹2,100)

• Q2 PAT ₹1,630 Cr ↑41% YoY, beating estimates by 3%.

• AUM ₹2.48 lakh Cr ↑25% YoY.

• Improved asset quality supports the business outlook.

• Higher funding costs continue to pressure NIMs.

• FY27 AUM growth guidance retained at 22–23%.

NUVAMA ON ADANI PORTS

• Rating: BUY | Target Price: ₹2,170 (Earlier ₹2,000)

• Q2 Revenue ↑24% YoY, EBITDA ↑25% YoY and Adjusted PAT ↑13% YoY, beating estimates.

• International Ports EBITDA ↑236% YoY.

• Domestic Ports Revenue ↑13% YoY.

• EBITDA estimates raised by 4% for FY27 and 2% for FY28.

• Higher guidance and capacity expansion support future growth.

CITI ON TVS MOTOR

• Rating: SELL | Target Price: ₹3,600 (Earlier ₹3,500)

• Q2 Revenue ↑44% YoY; EBITDA ↑47% YoY, beating estimates.

• Higher realisations and PLI incentives offset rising operating costs.

• Potential consumer finance business demerger could unlock value.

• Elevated valuations remain a key concern despite strong earnings growth.

MACQUARIE ON TVS MOTOR

• Rating: OUTPERFORM | Target Price: ₹4,325

• Q2 EBITDA ₹2,220 Cr ↑47% YoY, beating estimates by 5%.

• EBITDA Margin expanded to 13% despite commodity cost pressures.

• Consumer finance business demerger expected to unlock value.

• Additional capacity expansion expected to support future growth.

JEFFERIES ON TVS MOTOR

• Rating: BUY | Target Price: ₹5,425

• Q2 EBITDA and PAT ↑47–48% YoY, beating estimates.

• Sales Volumes ↑27% YoY.

• EBITDA Margin improved to 13%.

• Domestic two-wheeler market share reached a 23-year high of 20%.

• Strong export momentum continues.

JPMORGAN ON HERO MOTOCORP

• Rating: OVERWEIGHT | Target Price: ₹6,845

• Q2 Revenue ↑21% YoY; EBITDA ↑8% YoY, beating estimates.

• EBITDA Margin at 13.4%.

• Adjusted Net Profit ↑5% YoY, missing estimates.

• Better gross margins support earnings despite cost pressures.

• Commodity costs and future growth outlook remain key factors to monitor.

JEFFERIES ON NSE

• Rating: BUY | Target Price: ₹2,085

• Revenue expected to grow at 15% CAGR over FY27–29.

• EPS expected to grow at 16% CAGR over FY27–29.

• New business opportunities could add 15% to FY30 EPS.

• Strong market leadership and business diversification support growth.

• Improving margins, diversification and market leadership justify premium valuations.

JEFFERIES ON ADANI ENTERPRISES

• Rating: BUY | Target Price: ₹3,830

• Q2 EBITDA ↑62% YoY, beating estimates, driven by strong airports and copper businesses.

• Airports EBITDA ↑55% YoY despite a 6% decline in passenger traffic.

• FY27 EBITDA estimates raised by 4%.

• Data centre expansion provides strong long-term growth visibility.

JEFFERIES ON BANDHAN BANK

• Rating: BUY | Target Price: ₹200 (Earlier ₹240)

• Q2 Net Profit ↑456% YoY; Net Loans ↑15% YoY.

• NII ↑14% YoY.

• Deposits ↑9% YoY, lagging loan growth.

• Higher credit costs and regulatory changes pose risks to profitability.

• FY28–29 earnings estimates cut by 3–4%.

• Attractive valuations expected to limit downside.

JEFFERIES ON UNITED SPIRITS

• Rating: HOLD | Target Price: ₹1,560

• Growth remains underwhelming, with weak volume momentum.

• Prestige & Above segment volumes ↓1% YoY.

• Gross margin expanded 88 bps.

• Higher advertising expenditure weighed on EBITDA margin.

• Persistent market headwinds in Maharashtra continue to impact growth.

• Strong cash flow generation provides financial comfort.

JEFFERIES ON GMR AIRPORTS

• Rating: BUY | Target Price: ₹135

• Q2 EBITDA ↓2% YoY to ₹1,480 Cr despite higher revenue.

• Passenger traffic ↑1.4% YoY, with Hyderabad and Goa airports witnessing weak growth.

• Non-aeronautical revenue ↑17% YoY.

• Improving revenue yields helped offset muted passenger traffic growth.

• Higher revenue failed to translate into EBITDA growth.

JEFFERIES ON HERO MOTOCORP

• Rating: HOLD | Target Price: ₹6,000

• Q2 EBITDA ↑8% YoY, in line with estimates.

• Sales volumes ↑11% YoY.

• EBITDA margin remained flat QoQ at 13.4%.

• Net Profit ↑5% YoY, missing estimates by 4% due to lower financial income.

• EBITDA growth remained below volume growth.