As investors prepare for the annual Muhurat Trading session on Diwali, Kotak Securities has outlined its preferred stocks for Samvat 2083, with recommendations spanning infrastructure, quick commerce, defence, chemicals, IT, jewellery and banking.
The brokerage’s picks include Apollo Tubes, Eternal, Hindustan Aeronautics (HAL), Jubilant Ingrevia, Persistent Systems, Titan Company and Ujjivan Small Finance Bank. The recommendations carry a 12-month investment horizon, with ratings of ‘Buy’ or ‘Add’ based on the brokerage’s return expectations.
The stock selections come against a backdrop of global uncertainty, changing investor preferences and domestic economic resilience. In its review of Samvat 2082, Kotak Securities said Indian equity markets had undergone a period of correction and reassessment, with foreign investor selling, elevated crude oil prices and higher US bond yields weighing on sentiment.
Samvat 2082: Foreign Outflows And Domestic Liquidity
Indian benchmark indices, including the Nifty-50 and Sensex-30, faced pressure during Samvat 2082. Foreign institutional investor outflows were driven by factors including the Middle East conflict and its impact on crude oil prices, as well as capital moving towards higher-yielding US bonds.
However, domestic liquidity, supported by mutual fund systematic investment plans (SIPs), helped absorb a significant part of the foreign selling, according to Kotak Securities. The brokerage also pointed to corporate balance sheets, infrastructure capital expenditure and Production Linked Incentive (PLI) schemes as factors supporting India’s underlying economic position.
The brokerage noted that select mid-cap and small-cap stocks performed relatively better than traditional large-cap blue-chip stocks during the period.
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Samvat 2083 Outlook: Global Markets And AI Optimism
Global equity markets delivered mixed returns as investors weighed macroeconomic pressures against the continued expansion of artificial intelligence-related investment.
Large technology companies supported gains in major US indices, but the Middle East conflict contributed to energy price shocks and persistent inflation. Kotak Securities said this environment led major central banks to move away from expected rate cuts towards hikes, while bond yields also rose.
The brokerage cited International Monetary Fund projections of global growth at 3.1% in CY26 and 3.4% in CY27. Headline inflation is expected to ease from 4.7% to 4.1%.
Meanwhile, the AI investment theme is facing closer scrutiny. Kotak Securities said investors are increasingly assessing whether companies can convert AI-related spending into near-term revenue and profitability, rather than relying only on expectations of future growth.
This shift has made markets more selective, with companies that have pricing power and structural growth drivers being favoured over those exposed to higher input costs or weaker demand.
India’s Growth And Policy Environment
Kotak Securities said India continued to be the fastest-growing major economy, supported by domestic demand, manufacturing expansion and reforms.
The brokerage cited GDP growth of 7.7% in FY26 and Q1FY27, with growth estimated at 7.2% in FY27 and 6.5% in FY28. It also noted that rising inflation had prompted the Reserve Bank of India’s Monetary Policy Committee to adopt a ‘calibrated tightening’ stance and raise the repo rate by 25 basis points to 5.5%, with further increases anticipated as inflation remained elevated.
Trade agreements with the UK, Australia and EFTA, alongside initiatives such as Semicon 2.0, were identified as measures supporting trade access and domestic supply chains. Kotak Securities also referred to steps to attract FCNR deposits and tighten systemic liquidity, aimed at supporting the rupee and managing risks associated with sustained foreign investor outflows.
Kotak Securities’ Top Stock Picks For Samvat 2083
The brokerage’s recommendations include seven stocks across different sectors. Here are the key details, including the current market price (CMP), 12-month target and rating shared in its report.
Stock
CMP
12-month target
Rating
Apollo Tubes Ltd
Rs 2,165
Rs 2,594
Buy
Eternal Ltd
Rs 344
Rs 435
Buy
Hindustan Aeronautics Ltd
Rs 4,854
Rs 5,305
Add
Jubilant Ingrevia
Rs 558
Rs 970
Buy
Persistent Systems
Rs 6,048
Rs 6,500
Buy
Titan Company
Rs 4,436
Rs 5,050
Add
Ujjivan Small Finance Bank
Rs 53
Rs 85
Buy
Apollo Tubes: Infrastructure And Value-Added Products
Kotak Securities has a ‘Buy’ rating on Apollo Tubes, with a 12-month target price of Rs 2,594 against a CMP of Rs 2,165.
The brokerage said the company’s rising contribution from value-added products continues to support profitability. It also sees Apollo Tubes benefiting from investments in infrastructure, construction, energy and urban development.
Eternal: Quick Commerce And Food Delivery Growth
Eternal, which has a CMP of Rs 344, has a ‘Buy’ rating and a 12-month target of Rs 435.
Kotak Securities expects the company to record a revenue CAGR of 63% over FY26, driven by the expansion of quick commerce and continued growth in food delivery. It also expects EBITDA margins to rise from 2.2% in FY2026 to 4.6% in FY29, as scale and operating leverage improve.
Hindustan Aeronautics: Integrated Aerospace Operations
Kotak Securities has assigned an ‘Add’ rating to HAL, with a target price of Rs 5,305 against a CMP of Rs 4,854.
The brokerage highlighted HAL’s integrated operations across production, repair, overhaul, upgrades, engines, avionics and lifecycle support. It said exports and civil aerospace are viewed by the company’s management as strategic growth areas.
Kotak Securities expects HAL’s revenue to grow at a CAGR of 16% over the next five years.
Jubilant Ingrevia: Product Pipeline Supports Outlook
Jubilant Ingrevia is among Kotak Securities’ preferred chemical sector stocks. The brokerage has a ‘Buy’ rating, with a target of Rs 970 against a CMP of Rs 558.
Its positive view comes despite a correction in the stock amid renewed hostilities in the Middle East, the company’s acquisition of Zettaone and concerns over the outlook for the FMC contract.
Kotak Securities said the company’s developing new product pipeline across end-use industries was encouraging. It also expects the nutrition segment to continue growing.
Persistent Systems: AI-Linked Spending And Business Growth
Kotak Securities has a ‘Buy’ rating on Persistent Systems, with a 12-month target price of Rs 6,500 compared with its CMP of Rs 6,048.
The brokerage said the company is well positioned to benefit from AI-driven spending. It also pointed to strong bookings in recent quarters as a factor expected to support near-term growth.
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Titan Company: Jewellery Growth And Market Share
Titan has an ‘Add’ rating from Kotak Securities, with a target price of Rs 5,050 against a CMP of Rs 4,436.
The brokerage said a stable gold price environment could help Titan gain market share or improve EBIT margins over the medium term. It noted the company’s guidance of 19-20% CAGR in consolidated jewellery sales and a 250-basis-point increase in market share to 11%.
Titan’s jewellery market share remains in single digits, which the brokerage believes leaves room for further growth. Kotak Securities also said the lab-grown versus natural diamond debate had receded, with both categories coexisting in the market.
The brokerage cited Titan’s reiterated normalised jewellery business margin range of around 11%, adding that underlying jewellery growth offered comfort as the boost from gold prices tapered.
Ujjivan Small Finance Bank: Asset Quality Outlook
Kotak Securities has a ‘Buy’ rating on Ujjivan Small Finance Bank, with a 12-month target price of Rs 85 against a CMP of Rs 53.
The brokerage said it favours the bank because of its outperformance during the recent microfinance cycle. It also views the lender as a play on a benign asset quality environment.
Kotak Securities’ Rating Scale
Kotak Securities’ Private Client Group rating definitions are based on expected returns over the next 12 months:
Rating
Expected return over the next 12 months
Buy
More than 15%
Add
5% to 15%