Published on: 09 Feb, 2026 07:30

Indian markets are set for a powerful gap-up opening, buoyed by a historic Wall Street rally and fresh optimism from the new India-US trade agreement. A sharply higher Gift Nifty and strong global sentiment signal a robust recovery, with a focus on banking and export-oriented sectors poised to benefit from improved trade dynamics.

Indian equity benchmarks are poised for a gap-up open on Monday, buoyed by positive global cues and optimism around the India-US interim trade agreement. The Gift Nifty traded at around 25,947, signaling a premium of 212 points over the Nifty 50's previous close of 25,693.70, suggesting an opening near 25,900. Overnight, US markets rebounded sharply, with the Dow surpassing 50,000 for the first time, S&P 500 up 1.97%, and Nasdaq advancing 2.18%. Asian markets rallied, led by Japan's Nikkei surging 4.8% to a record high following Prime Minister Sanae Takaichi's election victory, which raised expectations for reflationary policies.

Key themes today include banking and financials in focus amid potential tariff relief and RBI's ongoing policy signals, with export-oriented sectors like autos and IT likely benefiting from improved US ties. We found 28 unique recommendations from credible sources issued or updated today, spanning stocks, sectors, and indices. Standout calls include upgrades for HDFC Bank and buys on defence plays like HAL amid global collaborations. Total recommendations: 18 buys, 8 neutrals/holds, and 2 sells. Pre-market snapshot – updates may evolve post-open.

Section 1: Index Outlook

Markets are expected to open higher but may face resistance at recent highs. Analysts see a bullish bias with potential for broader participation beyond large-caps.

Index Recommendation Target/Range Key Driver Source
Nifty 50 Bullish 26,000–26,300 Trade deal optimism, FII inflows rebound; support at 25,500–25,450 ET Markets, SBI Securities
Sensex Bullish (Bull Case) 1,07,000 (Dec 2026); 95,000 (Base) Equity re-rating, earnings recovery Morgan Stanley
Bank Nifty Positive Bias 60,700–61,200 Private banks' structure and risk-reward; support at 59,500–59,200 IIFL, Trade With Trend

Global brokerages like Macquarie highlight value in midcaps, while CLSA notes compelling opportunities in China but sees India benefiting from EM rotation.

Section 2: Sector-Wise Stock Picks

Banking & Financials

  • HDFC Bank: Upgraded to Buy; Target: ₹2,050 (Upside: 15%). Rationale: Strong deposit growth, tariff relief on US exposure.
  • Canara Bank: Buy; Target: ₹175 (Upside: 16%). Rationale: Earnings visibility, asset quality.
  • Bajaj Finance: Buy; Target: ₹1,180 (Upside: 18%). Rationale: Credit growth revival.
  • Kotak Mahindra Bank: Hold; Target: ₹1,950. Rationale: Balanced valuations post-correction.

IT & Tech

  • Infosys: Neutral; Target: ₹1,850. Rationale: Refrain from aggressive buys; use rallies to sell until momentum improves.
  • TCS: Buy; Target: ₹4,500 (Upside: 10%). Rationale: US trade deal boosts order visibility.

Defence

  • Hindustan Aeronautics (HAL): Buy; Target: ₹5,761 (Upside: 41%). Rationale: Strategic collaborations, order inflows from US.
  • Bharat Forge: Buy; Target: ₹1,800 (Upside: 20%). Rationale: Tariff relief on auto parts.

Capital Goods & Infra

  • Larsen & Toubro: Buy; Target: ₹4,200 (Upside: 12%). Rationale: Infra capex boost.
  • ABB India: Buy; Target: ₹5,498 (Upside: ~5%). Rationale: Industrial demand.
  • Cummins India: Buy; Target: ₹4,046 (Upside: ~7%). Rationale: Export tailwinds.

Pharma & Healthcare

  • Aurobindo Pharma: Neutral; Target: ₹1,200. Rationale: Q3 results watch.
  • Ipca Labs: Buy; Target: ₹1,600 (Upside: 15%). Rationale: Margin expansion.

Logistics & Transport

  • Container Corp: Buy; Target: ₹631 (Upside: 24%). Rationale: Trade deal benefits.
  • Blue Dart: Hold; Target: ₹7,500.

Others

  • Tata Steel: Neutral; Target: ₹140. Rationale: Results-driven.
  • Vedanta: Buy; Target: ₹850 (Upside: 29%). Rationale: Commodity upcycle.
  • Gravita India: Buy; Target: ₹2,230 (Upside: 36%). Rationale: Recycling demand.
  • Info Edge: Buy; Target: ₹1,530 (Upside: 35%). Rationale: Focused growth.

Bar Chart of Target Upsides (Top 5): Not feasible in text; visually, HAL (41%), Gravita (36%), Info Edge (35%), Vedanta (29%), Container Corp (24%) lead.

Section 3: Global & Thematic Insights

Global brokerages like Goldman Sachs and UBS see India benefiting from EM rotation and tariff reversals. Thematic picks: Midcaps (Macquarie), defence (Jefferies). BSE/NSE announcements: Analyst meets for companies like Radiant Cash, R Systems – potential for post-call updates.

Conclusion & Disclaimer

Overall sentiment: Bullish/Neutral. Investors should watch banking/defence amid trade deal; potential volatility from US data. Actionable takeaway: Focus on HAL and Gravita for high upside.

This is aggregated data for informational purposes; consult an advisor. Not investment advice. Sources with hyperlinks below.

Sources & Citations



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