Top Brokerage Calls: HDFC Bank, Kotak, Coal India in Focus

Global brokerages have lined up bullish calls on premier private banking majors as decisive executive succession clarity removed overhangs across the financial sector. For HDFC Bank, the RBI's green light appointing Anup Bagchi as MD and CEO effective October 27, 2026, prompted Morgan Stanley to maintain an 'Overweight' stance with a target price of ₹1,025, emphasizing that ending leadership ambiguity will help the lender close its performance gap against the BankEx and private peers. Jefferies reiterated a 'Buy' recommendation with an ₹880 target, valuing the bank at 1.4 times FY28E adjusted book value and citing retail loan growth, cross-selling fees, and portfolio risk optimization as key margin drivers, while Citi assigned a 'Buy' rating with a ₹970 target, noting that Bagchi's three-decade ICICI track record combined with Rajiv Kumar as chairman sets the stage for a valuation re-rating. Meanwhile, Kotak Mahindra Bank also garnered strong institutional interest following RBI approval for Anup Kumar Saha to assume the CEO mantle from January 1, 2027; Jefferies issued a 'Buy' with a ₹460 target on anticipated retail deposit acceleration, Macquarie set an 'Outperform' rating with a street-high target of ₹500 highlighting long-term runway, and Citi maintained a 'Buy' at ₹465 anticipating continuity in strategic capital deployment.

Commodities and NBFC Powerhouse: Coal India E-Auction Surge and Bajaj Finance ₹17,500 Cr Capital Raise

Mining and shadow banking giants received strong structural endorsements anchored by cash generation and capital adequacy moves:

• Coal India (Target: ₹480): Morgan Stanley maintained an 'Overweight' rating on the state-run miner, propelled by September e-auction premiums leaping to approximately 94 percent over base prices, compared to 59 percent in August. Driven by sharp rallies in global thermal coal benchmarks and resilient non-power industrial demand, the brokerage projects near-term operational earnings to comfortably exceed Street consensus.

• Bajaj Finance (Target: ₹1,280): Jefferies reaffirmed its 'Buy' call and 'Top Pick' designation following the NBFC’s board approving a massive ₹17,500 crore capital raise via ₹5,800 crore in preferential warrants and ₹11,700 crore through a Qualified Institutional Placement (QIP). While slightly dilutive to near-term return on equity (RoE) as fresh funds are deployed, Jefferies estimates the capital infusion will expand FY28 book value per share by 8 percent, cementing a robust balance sheet to sustain over 23 percent credit compounding.

Auto Sector Divergence: Festive Demand Fuels Hero, Maruti, and Leyland While Bajaj Auto Faces Domestic Sell Call

Divergent volume trends across automobile manufacturers prompted sharp adjustments in brokerages' sector recommendations. Citi reiterated a confident 'Buy' on Hero MotoCorp with a target price of ₹6,670, highlighting 14 percent domestic two-wheeler growth, a 60 percent surge in scooter dispatches, and dominant rural distribution positioned to capture festive buying tailwinds. Conversely, Citi issued a 'Sell' rating on Bajaj Auto with a target of ₹10,000, citing a 12 percent drop in domestic two-wheeler sales where newly launched Pulsar variants failed to offset base-effect softness, even as a 34 percent jump in exports lifted overall volumes. In commercial and passenger vehicles, Citi assigned a 'Buy' on Ashok Leyland with a target of ₹200 on the back of a 40 percent combined jump in domestic medium and heavy truck and bus dispatches, while maintaining a 'Buy' on Maruti Suzuki with an ambitious target of ₹16,500 as domestic non-OEM volumes surged 37 percent, driven by a 62 percent expansion in utility vehicles.