Sector Updates

Indian HRC: Indian HRC prices decreased by 0.7% WoW to Rs 45,700/tonne, tapered by sluggish demand , liquidity constrains and import influx amid the absence of safeguard duty. Billet-Ex-Raipur: Billet prices increased by 1.9% WoW to Rs 36,950/tonne, owing to the improved bookings in the semi-finished...

NBFCs entered H1FY26 on a more moderate footing after the strong momentum of FY25. Sector AUM growth moderated to 17% YoY in H1FY2 (vs 23% YoY in H1FY25).

Bank credit stood at 10.3% YoY as of H1FY26, slightly below FY25’s 11.0% and lower that corresponding last year H1FY25 13.0 YoY growth pace, indicating moderation rather than a renewed acceleration.

Real GDP growth for FY26 has been revised upwards to 7.3% from 6.8%. The RBI Governor stated that the strong agricultural prospects, ongoing effects of GST rationalization, low inflation levels, healthy balance sheets of institutions,...

The Monetary Policy Committee (MPC) reduced the policy repo rate by 25 bps to 5.25% while maintaining a neutral stance, marking the first easing step of the current cycle.

Event Update: RBI Monetary Policy - December 2025

In November 2025, India's auto industry maintained solid growth momentum, capitalizing on strong festive demand in October and the long-term positive effects of GST 2.0 tax cuts. Sales of passenger vehicles, two-wheelers, commercial vehicles, and tractors all increased year on year, showing strong domestic demand, improving rural sentiment, and rising exports.

Maruti Suzuki’s Nov’25 performance reinforced the steady recovery in demand, with domestic volumes stabilizing and exports continuing to deliver strong momentum. The broader quarterly performance reflected resilient revenue growth supported by healthy exports and improved realizations, although margins remained under pressure due to elevated operating and input costs.

During Nov-25, Indian steel prices fell 2% MoM to Rs46,000/tonne, while Chinese steel prices increased by 2% MoM to $470/tonne, as producers hiked export prices owing to lower production. Coking coal prices decreased 3% MoM to $169/tonne, driven by weakness in Chinese production. In Oct-25, Indian steel production remained flat MoM at 13.6 mn tonnes, while estimated Chinese steel output fell by 2% MoM to 72 mn tonnes as mills began maintenance works at BF. Global steel production expanded 2% MoM to 143 mn tonnes. Furthermore, Chinese steel exports...

The month of November saw mixed chemical price movement: while MEG was down 9% MoM, Maleic Anhydride rose 6%. The growth in Ref gases also softened, as the refrigerant gases index grew by 4% MoM. As before the jump was supported by 5-6% jump in R410a and R134a. This was visible in the results of our coverage companies, NFIL and SRF, which posted not just strong results...

We prefer TVS Motors, Hero MotoCorp and Bajaj Auto in 2Ws (Eicher seems fully valued at CMP); M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also like Ashok Leyland in the CV space, followed by a close watch on Eicher (VECV) for any market share gains.

India's automotive OEMs posted healthy volume prints for November 2025. It was primarily driven by sustained demand momentum post festive season and amplified by GST 2.0 reforms, which lowered vehicle prices and boosted consumer sentiment. OEM wholesale sales volume for November 2025 came in healthy with PV & CV segment outperforming peers. CV space reported healthy volume prints for the month of November'25 with continued recovery visible across M&HCV & LCV segments. Maruti set the bar high, outperforming in the PV space while M&M continued with its...

Zinc: Zinc prices decreased by 2.3% WoW to $3,124/tonne. Indian HRC: Indian HRC prices decreased by 1.6% WoW to Rs 46,400/tonne, now at par with the previous 52-week-low price, as the market demand remains poor coupled with the increase in inventory...

Top Conviction Ideas - Retail

Top Conviction Ideas - FMCG

Top Conviction Ideas - Auto & Auto Ancillaries

Indian HRC: Indian HRC prices decreased by 0.6% WoW to Rs 47,000/tonne, amid weak demand, liquidity constraints and absence of workable prices in the distribution chain. Zinc: Zinc prices remained flat WoW at $3,209/tonne, however the LME...