From Tata Motors to GAIL, Stocks in Focus on D-Street

Dalal Street Turns Selective as Sectoral Leaders Steal the Limelight

Mumbai – Indian equity benchmarks traded on a volatile note on Thursday, but stock-specific action kept investor interest alive. A host of blue-chip companies, ranging from auto giant Tata Motors to energy PSU GAIL (India) Ltd, were in sharp focus due to fresh developments, sectoral tailwinds, and technical triggers.

The BSE Sensex and NSE Nifty 50 hovered within a tight range, but broader market activity indicated rotational shifts in investor preference. While technology and banking indices saw some consolidation, renewed buying interest in automobile, oil & gas, and capital goods stocks lifted sentiment.

Tata Motors Rides High on EV and JLR Momentum

Tata Motors shares gained over 3.4% intraday following positive cues from its Jaguar Land Rover (JLR) division and robust EV sales growth in May. The company recently reported a 19% YoY growth in domestic passenger vehicle sales, driven largely by its Nexon EV and Punch variants.

“Tata Motors is effectively capitalizing on the EV wave and its JLR unit is showing signs of recovery in global markets. Valuations remain attractive given its margin improvement and deleveraging,” said Nilesh Shah, Head of Research at Kotak Securities.

With the Street anticipating improved EBITDA margins and continued demand resilience, analysts have raised their short-term price targets for Tata Motors to ₹1,100–₹1,150 per share.

GAIL Soars on Gas Price Reforms, Transmission Outlook

GAIL (India) Ltd, India’s largest gas transmission and marketing company, surged nearly 5.2% during the session after the Petroleum Ministry hinted at further reforms in gas pricing and plans to incentivize domestic pipeline expansions.

“Policy clarity on unified tariffs and improved spot LNG affordability are big positives for GAIL. The company’s transmission volumes are expected to grow significantly in FY26,” said Jyoti Roy, Equity Strategist at Angel One.

The stock also received a boost from rising global LNG demand and expectations of increased offtake from industrial and fertilizer sectors. Brokerages such as ICICI Direct and Axis Capital reiterated their ‘Buy’ rating, citing strong fundamentals and a dividend yield of over 5%.

Other Stocks in Focus: L&T, Marico, and HDFC Life

Larsen & Toubro (L&T) saw a 2.1% rise on the back of multiple order wins in the hydrocarbon and defense segments. The infrastructure major recently secured a ₹2,500 crore contract in Saudi Arabia, further strengthening its overseas order book.

Meanwhile, Marico Ltd shares rose 1.8% after management commentary indicated rural demand recovery and margin stability, supported by softening copra prices. The FMCG player is betting on premium personal care categories to accelerate growth in the second half of the fiscal.

HDFC Life Insurance remained subdued despite announcing a tie-up with a major private bank for bancassurance. Market experts believe that the life insurance sector might remain under pressure due to regulatory overhang and muted premium growth post-tax rule changes.

Market Context: Sector Rotation and Domestic Flows Support Resilience

The Indian market has displayed remarkable resilience even amid global uncertainties including rate cut delays by the US Federal Reserve and persistent inflationary concerns in Europe. Domestic institutional investors (DIIs) have stepped up their participation, absorbing foreign portfolio investor (FPI) outflows.

As per NSE data, DIIs bought equities worth ₹2,850 crore, while FPIs sold shares worth ₹1,760 crore on a net basis. This domestic liquidity cushion has allowed sectoral leaders to outperform despite index-level stagnation.

Analyst View: Stock-Picking to Drive Alpha Amid Sideways Market

Market watchers believe that in the current phase, bottom-up stock selection will be more effective than index-based strategies.

“With large parts of the market trading at fair valuations, pockets of opportunity are emerging in sectors like autos, gas utilities, infrastructure, and select FMCG. Investors should focus on companies with earnings visibility and margin levers,” said Meera Sengupta, Senior Portfolio Manager at Trust AMC.

Investor Outlook: Eyes on Monsoon, Fed, and State Election Outcomes

Looking ahead, key triggers for the market will include the progress of the Southwest monsoon, state election results in Maharashtra and Haryana, and cues from the US Federal Reserve's June meeting.

For investors, experts advise a selective accumulation strategy with a focus on:

• Auto and EV-related plays (Tata Motors, M&M)

• Energy infrastructure (GAIL, ONGC)

• Capex and engineering names (L&T, Siemens)

• FMCG with rural leverage (Marico, Dabur)