Bajaj Finance, Hindustan Petroleum, Eternal Limited, Hindustan Zinc, Petronet LNG, Shriram Finance, BPCL, Ashok Leyland and Godrej Properties witnessed selling pressure as overall market sentiment was bearish. Indian markets faced selling across the board as markets were spooked by Middle East geopolitical situation. European markets were also trading lower but recovery was seen as US markets recovered after initial selling. Indian markets are witnessing high volatility and the situation will need a few days to return to normal. However, the market sentiment will depend on the geopolitical situation. Investors are still not able to figure out the direction for Stocks, Gold, Crude Oil and Natural Gas. While Crude jumped above $100 during the session, there was a decline of more than 4 percent by the end of the trading session. The higher volatility was also witnessed in many stocks in Indian market. TopNews has reviewed technical levels and latest news for some of the stocks witnessing selling.

While Eternal Ltd (formerly Zomato) is currently grappling with a sentiment-led correction despite intact fundamentals, Bajaj Finance continues to deliver robust earnings amid valuation concerns. PSU counter Hindustan Zinc seems to be benefiting from a powerful commodity upcycle. While Eternal reflects the tension between growth and profitability in digital businesses, Bajaj Finance represents a premium compounder under scrutiny for valuation sustainability. Meanwhile, Hindustan Zinc stands out as a cyclical outperformer driven by strong earnings, capex-led expansion, and favorable commodity tailwinds.

Eternal Ltd (Formerly Zomato): Sentiment Shock Masks Structural Strength

Eternal Ltd has emerged as one of the most sharply corrected large-cap internet names in recent months, with the stock declining nearly 40% from its peak. This pronounced fall reflects a confluence of macroeconomic anxieties, sector-specific concerns, and shifting investor expectations around profitability.

At the heart of the correction lies apprehension over rising input costs, particularly fuel and gas, which have a direct bearing on delivery economics. Simultaneously, investor sentiment toward the quick commerce segment has softened, driven by concerns over sustainability and near-term profitability. The market has also become increasingly sensitive to aggressive expansion strategies that may defer profitability.

From a technical standpoint, the stock’s position below key moving averages reinforces a bearish near-term trend, as highlighted by recent market commentary. However, this technical weakness contrasts with the relative stability in the company’s core operational metrics.

Brokerage Conviction Strengthens Amid Correction

A notable shift in institutional sentiment has come from JM Financial, which has taken a contrarian stance by issuing an “Aggressive Buy” recommendation in March 2026.

The brokerage’s thesis hinges on the belief that the market has overreacted to macroeconomic risks, particularly those related to fuel cost pressures. According to its assessment, the correction is largely sentiment-driven rather than reflective of fundamental deterioration.

JM Financial underscores that Eternal’s dual engines—food delivery and quick commerce—continue to exhibit strong structural growth potential. At current levels, the brokerage views the stock as an attractive accumulation opportunity for long-term investors, especially as valuations have become more reasonable following the correction.

Core Business Engines: Growth vs Profitability Tension

Blinkit (Quick Commerce)
Blinkit remains the company’s most dynamic growth vertical, consistently delivering high growth rates. However, this growth comes at a cost. The segment continues to incur significant cash burn, raising questions about the timeline to profitability and its impact on consolidated margins.

Food Delivery Business
The food delivery segment, by contrast, offers a more stable foundation. Operating within a duopolistic market structure alongside Swiggy, the business has demonstrated improving contribution margins, signaling better unit economics.

Strategic Dilemma
Investors remain divided between two competing frameworks:

A growth-first approach, prioritizing market share and scale

A profitability-first approach, emphasizing disciplined capital allocation

This strategic dichotomy has become a central driver of stock volatility, with market participants recalibrating expectations around sustainable growth.

Forward Triggers: What Will Drive the Next Move?

The trajectory of Eternal’s stock will likely hinge on a set of clearly identifiable catalysts:

Bullish Drivers

Evidence of Blinkit reducing losses

Continued margin expansion in food delivery

Positive disclosures around unit economics and operating leverage

Downside Risks

Persistent cash burn in quick commerce

Intensifying competition within the segment

External shocks, including regulatory or cost-related disruptions

Strategic Takeaway:
Eternal represents a classic case of short-term sentiment dislocation versus long-term structural opportunity, making it a stock where timing and conviction will be critical.

Bajaj Finance: High-Quality Growth Meets Valuation Scrutiny

Bajaj Finance continues to reinforce its reputation as one of India’s most consistent financial compounders. Supported by robust loan growth, resilient consumer demand, and improving asset quality, the company has delivered a strong operational performance.

Despite these strengths, the stock currently trades around Rs 870–880 levels, approximately 20% below its 52-week high, reflecting a moderation after a strong rally.

Earnings Momentum Remains Intact

Recent financial performance has been particularly noteworthy. The company reported 18% year-on-year profit growth in Q3, alongside guidance for 22–23% profit growth in FY26.

This sustained earnings trajectory underscores the strength of Bajaj Finance’s business model, which continues to benefit from expanding credit penetration and diversified lending products.

The earlier rally in the stock, driven by these earnings, has now given way to consolidation as investors reassess valuation multiples.

Institutional Endorsement with Nuanced Optimism

Leading global brokerages have maintained a constructive stance, albeit with nuanced perspectives:

Morgan Stanley
The firm characterizes Bajaj Finance as an “interesting large-cap opportunity”, citing strong management continuity and clear visibility on growth.

Jefferies
Jefferies highlights the improvement in asset quality, noting a reduction in stress within the lending cycle.

Market Consensus
The broader analyst community has responded positively, with at least 12 analysts raising target prices following the earnings release. The median target hovers around Rs 8,500 (pre-split equivalent), indicating continued confidence in long-term prospects.

Structural Growth Drivers Supporting the Franchise

Retail Credit Expansion
India’s consumption-driven economy continues to fuel demand for credit, particularly in segments such as Buy Now Pay Later (BNPL) and consumer durable financing.

Digital Ecosystem Strength
Bajaj Finance has built a robust digital platform, enabling cross-selling across financial products and enhancing customer engagement.

Asset Quality Recovery
A key tailwind has been the stabilization of asset quality, with declining NPAs contributing to improved investor confidence.

Key Risks and Valuation Debate

While the operational outlook remains strong, several risks warrant attention:

Rising interest rates, which could compress margins

Potential regulatory tightening for NBFCs

Increasing competition from banks and fintech platforms

Bull Case: Sustained 20%+ earnings growth could justify premium valuations.
Bear Case: Any slowdown in growth may trigger valuation derating, given the stock’s already elevated multiples.

Strategic Takeaway:
Bajaj Finance exemplifies a high-quality franchise where execution remains strong, but valuation sensitivity is rising.

Hindustan Zinc: Riding the Commodity Supercycle with Strategic Expansion

Hindustan Zinc has delivered a standout performance, underpinned by a favorable commodity environment and strong operational execution.

The company reported 47% year-on-year profit growth, supported by higher zinc prices and increased production. Revenue growth stood at 21% YoY, reflecting both volume and pricing tailwinds.

Demand Visibility Strengthens Long-Term Outlook

The demand outlook for zinc remains robust, driven by its critical role in infrastructure and steel production. The company estimates domestic demand could reach approximately 926 kilotonnes by FY26, providing strong visibility for sustained growth.

This demand trajectory aligns with broader economic trends, including infrastructure expansion and industrial activity.

Capex Expansion Signals Long-Term Confidence

A pivotal strategic development is the approval of a Rs 120 billion capital expenditure program, aimed at establishing a new metals complex in Rajasthan.

Key highlights include:

Capacity addition of 250 KT

Execution timeline of approximately 36 months

While the capex initiative enhances long-term growth prospects, it may exert near-term pressure on cash flows, creating a nuanced risk-reward profile.

Brokerage Backing Reinforces Bullish Sentiment

JM Financial has reiterated its positive stance, issuing a Buy recommendation with a target price of Rs 550, compared to the current trading range of around Rs 460.

The brokerage attributes its optimism to:

A strong earnings trajectory

A supportive commodity price cycle

Continued operational efficiency improvements

Key Investment Drivers and Risks

Growth Catalysts

Favorable zinc price environment driven by infrastructure demand

Tight global supply conditions

Contribution from the silver segment, enhancing revenue diversification

Risks

Volatility in global commodity prices

Dependence on demand from key markets, particularly China

Environmental and regulatory challenges

Strategic Takeaway:
Hindustan Zinc is currently positioned within a strong cyclical upswing, supported by both earnings momentum and strategic expansion.