JSW Energy to Polycab: Top Brokerage Picks Guide Stocks Set for Massive Surge in Power and Consumer Sectors

Power and Core Industrials Sector Gains Momentum​

Brokers have issued fresh calls on key power players, signaling a strong rebound in India's electricity demand. Jefferies noted that while March 2026 power demand rose 2% year-over-year (YoY), the growth is expected to be muted at 1% YoY in FY26 due to strong monsoon conditions. However, demand is anticipated to rebound to approximately 6% YoY in FY27E.

Top picks highlighted for the sector include JSW Energy and NTPC. The demand growth trajectory is further supported by a 60% probability of an El-Nino event, which could drive additional upside. Peak demand, in particular, is expected to rise 10% YoY, reaching 270 GW in FY27E.

Strong Tailwinds for Banking and Financial Services (BFSI)​

The BFSI space continues to attract positive attention, with several upgrades and increased targets issued by major firms. Axis Capital upgraded Ujjivan SFB to a 'Buy,' raising the Target Price (TP) from ₹ 66 to ₹ 77. The firm points to Ujjivan's transition toward a diversified universal banker profile and strong collections near 99.8%.

For the broader BFSI sector, Morgan Stanley advises remaining constructive over the next 12 to 18 months, viewing large private banks as defensive plays. Goldman Sachs maintains a 'Buy' on Solar Industries, citing the supportive price increase in explosives and the ability to pass on costs across non-defense segments.

Consumer Durables and Infrastructure Demand Rockets​

The consumer durables sector is positioned for growth, driven by rising commodity demand. Macquarie anticipates that cable and wire volumes could grow by over 15% in Q4FY26, with cooling product demand expected to spearhead FY27 growth. Polycab has been named a top pick in this segment, alongside Crompton and Havells.

Similarly, HSBC has maintained 'Buy' ratings on several consumer staples, including Havells (TP ₹ 1,700) and Crompton (TP ₹ 350). For industrial plays, HSBC provided a 'Buy' call on Cummins, raising the TP to ₹ 5,500, and keeping ratings on L&T (Hold, TP ₹ 3,900) and Siemens (Hold, TP ₹ 3,230).

Analysis of Key Specialized Stocks and Financial Players​

Investment banks provided granular analysis on several focused stocks. JPMorgan initiated coverage on Shriram Finance with an 'Overweight' rating and a TP of ₹ 1,180, citing improved visibility from the MUFG investment and positive RoA outlook.

In the agricultural sector, ICICI Securities initiated a 'Buy' call on Sumitomo Chemical with a TP of ₹ 515, highlighting the company's strong positioning backed by its global parent and robust Indian agri demand.

Meanwhile, the auto sector drew attention from Morgan Stanley, which outlined the implications of the new Delhi EV policy. This policy proposes phaseout timelines for Internal Combustion Engine (ICE) two-wheelers and three-wheelers, along with demand incentives and tax waivers for electric vehicles.

Mixed Signals and Sectoral Cautionary Notes​

Not all sectors received an unreserved endorsement. Emkay initiated a 'Sell' rating on Avenue Supermarts with a TP of ₹ 3,700, citing concerns over quick commerce competition and the potential for negative Free Cash Flow (FCF).

Additionally, while Macquarrie noted that commodity cost inflation could pressure margins in consumer durables, suggesting 10-15% price hikes are already implemented, HSBC warned that higher input costs and commodity costs combined with rains may impact Q1FY27.

On the other side, Axis Capital upgraded HDFC Life to a 'Buy' and cut the TP to ₹ 750, deeming the valuation attractive after a correction, while noting that APE growth remains capped but margins are improving.