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Mumbai: Bajaj Finserv and its subsidiary Bajaj Finance were among the top gainers in Thursday's trading after Kotak Institutional Equities reinitiated coverage on the stocks citing strong business prospects.Bajaj Finserv surged 7.9%, with the brokerage rating the stock a 'buy' with a price target of ₹1,930. This implies an upside of 13.6% over Thursday's closing price of ₹1,700."Strong expansion across business lines with moderate-to-high margins and a focus on profitability are long-term value drivers. The new business lines will likely generate value over time," said Kotak in a client note.Kotak rated Bajaj Finance an 'add' with a price target of ₹8,000, suggesting gains of 8.3% over Thursday's closing level of ₹7,387. The stock jumped 6.5%."We expect Bajaj Finance to deliver 25%+ loan book growth over the next three years, with the near-term being marred by asset quality challenges, mostly in the unsecured book," it said.Separately, brokerage Citi put the stock on its "90-day positive catalyst watch" with a price target of ₹8,150 in the run-up to the December quarter earnings announcement this month. The firm expects loan growth stability, positive bias in Net Interest Margin (NIM), and a marginal rise in credit cost in the results.Citi said an update on Bajaj Finance managing director Rajeev Jain's much-speculated transition will be critical with "our assessment leaning more towards the executive role of Rajeev Jain at BAF/Bajaj Group level."Bajaj Finserv and Bajaj Finance have been underperformers over the past year with returns from shares of both companies remaining almost flat in the period. The rebound on Thursday helped both the shares erase the losses.Kotak initiated coverage on Bajaj Housing Finance, a unit of Bajaj Finance, with a sell rating and a price target of ₹100. The stock fell 0.6% to close at ₹126.45."Intense competition and low spreads in prime housing cap medium-term RoE (Return on Equity) to mid-teen levels," it said.

Mumbai: Automobile shares emerged as the top gainers in Thursday's trading as stronger-than-expected auto sales in December reported by three companies eased concerns over demand slowdown. Nifty's Auto index soared 3.8% on Thursday, its best single-day performance since June, after gaining as much as 1.2% the previous day.Eicher Motors jumped 8.6%, Ashok Leyland soared 6.2%, Maruti Suzuki advanced 5.6% and Mahindra and Mahindra gained 4.2%."We have seen strong December sales numbers reported by Eicher Motors, Maruti and Mahindra & Mahindra, which have lifted the stocks on Thursday," said Arun Agarwal, vice president, fundamental research, Kotak Securities.Auto shares have been under pressure in the October-December period as worries about falling demand for vehicle sales prompted investors to cut their bets on the sector. The auto index fell almost 17% in this period."The Nifty Auto Index has witnessed a time and price wise correction and is now poised to move higher towards 24,700 to 25,500 in the near term," said Nilesh Jain, head of derivatives and technical research at Centrum Broking. The index closed around 24,000 levels on Thursday.While Maruti's bullish outlook also lifted the sentiment in the sector, analysts said growth in the sector will be restricted to fewer segments.116898193"While Maruti's numbers come as a surprise, our overall growth expectations for FY25 remain in favour of two-wheelers," said Agarwal.He said in FY25 passenger vehicle(PV) growth may be flat, while tractor companies are expected to perform better in the second half of the financial year given the good monsoon, high reservoir levels and expectations of a good Rabi crop.Emkay Global said the recent decline in two-wheeler stocks of 24-33% was unwarranted notwithstanding the slowing growth momentum in the segment.Analysts expect the pick up in car sales to continue in the earlier part of 2025."We saw the momentum in car sales go up in October and then in December, which is seasonally a lean month for wholesales," said Mumuksh Mandlesha, research analyst, Anand Rathi Institutional Equities. "This change in momentum can sustain for the next 3-6 months."STOCK PICKSMandlesha said he is bullish on M&M, Maruti and Eicher."We see that Maruti and Eicher are much below their historical average multiples and can give investors a chance to make gains," he said.Emkay upgraded its ratings on TVS and Bajaj Auto, while retaining its buy on Hero Motocorp. Agarwal prefers M&M, Hyundai and Tata Motors in this space. Jain is bullish on Mahindra & Mahindra, Maruti Suzuki and TVS Motor Company.

There was a certain edginess about the Indian net session on Thursday, the eve of the fifth and final Test in Sydney. The stakes couldn’t be higher. For the first time since 2016-17, India face the prospect of losing the Border-Gavaskar Trophy. India could have come to Sydney with a 1-1 scoreline, but one bad session in Melbourne cost them the fourth Test to make it 2-1 in favour of Australia. This Test, however, is more than just a scoreline. It holds immense significance for the future trajectory of Indian cricket, signalling the beginning of the transition that’s been talked about for months now. The churn is set to begin here in Sydney. Consider these observations from India’s training session: Captain Rohit Sharma did not practice slip catching, even as others did; his brief batting stint was limited to taking throwdowns; head coach Gautam Gambhir didn’t confirm whether Rohit would be in the playing XI despite being specifically asked in the press conference. Even if Rohit plays, which seems unlikely, it could potentially be his last game as India’s Test captain. His likely successor, Jasprit Bumrah, was noticeably proactive at the nets and spent considerable time speaking to Gambhir and chief selector Ajit Agarkar. India’s only win on this tour so far in Perth came under Bumrah’s leadership, solidifying his position as natural heir to the red-ball captaincy. Another noteworthy observation from the nets was Dhruv Jurel’s extended batting session, closely monitored by the head coach. While there is no indication that Rishabh Pant will be sidelined — he remains integral to the setup — the message for him to be responsible is evident. Though Pant, who batted as well as kept wickets in the nets, is going to be Bumrah’s deputy in the match, keeping Jurel ready, even if as a backup, is significant. The pre-match press conference further added to the intrigue. Traditionally, the captain addresses the media on the eve of the final Test of the series; for Australia, it was Pat Cummins. But for India, it was Gambhir. Asked why Rohit stayed away, Gambhir said, “The head coach is here and that should be enough.” While it appeared to be a straightforward reply, it was clear he was shielding Rohit amid the ongoing uncertainty. It was probably an attempt to prevent things from tumbling out of the dressing room. Yet, Gambhir’s open-ended remarks about Rohit’s selection sent social media into a tizzy“We’re going to have a look at the wicket and finalise it [the XI] tomorrow,” Gambhir said when asked whether Rohit was going to play. On current form, Rohit wouldn’t select Rohit for this Test. Instead, he would also prefer Gill. This selection call is a clear indication that the team always comes first. The thought process behind leaving out the captain is a hint at the future direction of Indian cricket. The transition is here. The baton is set to pass to Bumrah, Pant and Gill. Sydney will witness the start of the process. Gambhir was brought in to oversee this transition. But, is he pushing things a bit too hard? How are the next generation leaders taking it? Will he go down the Anil Kumble route? Can he manage the bruised egos and keep a working relationship? When things don’t go well for a team — especially on tough overseas tours like Australia and England — skeletons tend to tumble out. These are times when you need to keep the flock together and stay focussed. It’s crucial to treat players with respect and dignity to ensure a seamless transition. Seniors who have served the team for years should be made to feel valued, even while phasing them out. While this is easier said than done, Gambhir and the management must navigate this delicate phase carefully for the sake of the team’s unity. For Rohit, it is his moment of reckoning — face reality, accept the decision with grace and take a reasoned call on your future. It is hard. But, that’s how the sport is — unforgiving and raw. A win in Sydney could ease the tensions. Conversely, a defeat could amplify the anxiety and apprehensions. As mentioned earlier, this is far more than just a Test, and much more than the result is at stake. The beginning of the new year couldn’t have been more dramatic.