Global brokerage firm Macquarie has issued fresh ratings and target prices for a selection of Indian financial stocks, impacting several major players in the market. The firm's latest note, dated September 30, 2026, details significant upgrades and one notable downgrade.
Key Upgrades to 'Outperform'
Macquarie upgraded several prominent Indian financial institutions to an 'Outperform' rating. These include:
- One 97 Communications Ltd (Paytm)
- Kotak Mahindra Bank Ltd
- Bank of Baroda (BoB)
- M&M Financial Services Ltd (MMFS)
- ICICI Prudential Life Insurance
The brokerage expressed a particular preference for Life Insurance Corporation of India (LIC), citing the removal of government stake-sale concerns, improving margins, and reduced exposure to IRDA regulations as key factors.
PB Fintech Downgraded to 'Neutral'
Conversely, Macquarie downgraded PB Fintech Ltd (which operates Policybazaar) from 'Outperform' to 'Neutral'. This marks a cautious shift in outlook for the fintech company.
Outlook on Domestic Private Banks
In its comprehensive analysis, Macquarie projected robust performance for domestic private banks, anticipating an 18 percent earnings growth in FY28. This optimistic forecast is attributed to improving margins and a reduction in operating expenses. Analysts Suresh Ganapathy and Dev Shah highlighted that the sector currently trades at an undemanding valuation of 1.3 times FY28 estimated book value, suggesting scope for a significant re-rating.
Supportive Macroeconomic Backdrop
The analysts emphasized a supportive macroeconomic environment, noting that post-FCNR (Foreign Currency Non-Resident) mobilization has eased liquidity constraints. They also pointed to robust and broad-based loan demand, healthy asset quality, and the imminent possibility of further rate increases as positive indicators for the financial sector.