Stock Picks for July 8: Infosys, HUL, Indian Oil Among Analyst Favorites as Markets Seek Sectoral Resilience

As Indian equity markets navigate a period marked by cautious optimism, select stocks across key sectors are emerging as favorites among top market analysts. On July 8, 2025, brokerage recommendations highlighted Infosys, Hindustan Unilever (HUL), Torrent Pharma, Indian Oil Corporation (IOC), and Welspun Living as strong contenders based on fundamentals, earnings momentum, and sectoral resilience.

The mixed cues from global markets, coupled with the wait-and-watch stance ahead of quarterly earnings and macroeconomic data, are prompting investors to lean on quality and defensiveness.

Let’s examine why these five stocks are being recommended today—and what their current outlook suggests.

1. Infosys (NSE: INFY)

Sector: Information Technology
Target Price Range: ₹1,640 – ₹1,700

Analysts from ICICI Securities and Axis Direct are backing Infosys as a solid pick in the IT space, despite short-term volatility from global tech spending slowdowns. The company’s digital transformation pipeline, strong cash flows, and robust FY26 guidance continue to attract institutional confidence.

“Infosys remains undervalued given its client retention strength and large cloud migration contracts,” noted a report from HDFC Securities.

Key triggers include:

• Expected margin improvement in Q1 FY26

• Continued growth in North American and European verticals

• Positive sentiment around AI-led services expansion

2. Hindustan Unilever Ltd (NSE: HINDUNILVR)

Sector: FMCG
Target Price Range: ₹2,720 – ₹2,790

Amid inflationary pressures easing in food and commodities, HUL has regained its appeal as a defensive bet with stable earnings. The stock is being favored for its dividend yield, broad product portfolio, and strong rural recovery outlook.

According to analysts from Motilal Oswal, HUL’s volume growth in the personal care and hygiene segments is likely to outperform in Q2. The company is also benefiting from input cost moderation, allowing for improved operating leverage.

Investors are advised to watch for:

• Impact of monsoon revival on rural demand

• Margin expansion in the skincare category

• Strategic brand repositioning across premium segments

3. Torrent Pharmaceuticals (NSE: TORNTPHARM)

Sector: Pharmaceuticals
Target Price Range: ₹2,400 – ₹2,520

Torrent Pharma is getting attention following its steady performance in domestic formulations and cost discipline across operations. Kotak Institutional Equities has maintained a "Buy" call, citing the company's performance in India, Brazil, and Germany.

Key positives include:

• Solid EBITDA margin guidance (approx. 30%)

• R&D pipeline across chronic therapies

• Improved cash position and deleveraging plan

Moreover, the pharma sector continues to be viewed as a hedge against global macro uncertainties and currency fluctuations, especially in light of recent healthcare policy changes in India.

4. Indian Oil Corporation (NSE: IOC)

Sector: Oil & Gas
Target Price Range: ₹145 – ₹158

Indian Oil’s strategic refining capacity, downstream operations, and strong Q4 FY25 earnings beat have put it back on the radar for institutional investors. Analysts at SBI Securities believe IOC is undervalued considering its petrochemical integration and stable refining margins.

With oil prices remaining elevated and demand recovering post-election, IOC is poised to benefit from:

• Higher GRMs (Gross Refining Margins)

• Government’s push for green hydrogen and biofuel investment

• Expansion in electric vehicle charging infrastructure

Dividend-paying capability and consistent public-sector support also bolster its attractiveness for long-term investors.

5. Welspun Living (NSE: WELSPUNLIV)

Sector: Home Textiles & Lifestyle
Target Price Range: ₹150 – ₹168

Welspun Living is emerging as a surprise pick in today’s recommendations, thanks to its export-led recovery and innovation in sustainable home textile products. The company has shown a remarkable bounce-back from pandemic-related disruptions and is now riding the global retail demand cycle.

With large clients in the U.S. and Europe, Welspun is likely to benefit from:

• Increased inventory restocking overseas

• Strong performance in B2B and e-commerce channels

• ESG-compliant manufacturing processes

Nuvama and JM Financial have projected double-digit earnings growth for FY26, highlighting the company’s operating efficiency and capex-light expansion plans.

Market Context: Why Analysts Favor These Stocks Today

Today’s recommendations reflect a broader investor appetite for earnings visibility, sectoral leadership, and fundamentally strong balance sheets. With Nifty and Sensex trading in tight bands amid weak global cues, fund managers are pivoting to stocks that offer stability without sacrificing growth potential.

“This is not a momentum play—it’s a rotation toward quality,” noted independent market analyst Ankur Shah on CNBC-TV18.

Investment Advice & Risk Disclosure

While all five stocks recommended today come with robust fundamentals, investors are advised to assess:

• Sector-specific risks (especially regulatory for pharma and FMCG)

• Global macro influences (interest rate cycles, crude prices)

• Company earnings reports and forward guidance

Stock performance can vary based on both domestic and international developments. Diversification, proper entry points, and a medium-term outlook are crucial.

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