India’s equity markets are experiencing a major shift in investor preference, with telecom heavyweight Bharti Airtel overtaking HDFC Bank to become the country’s second most valuable listed company by market capitalisation. Shares of Airtel surged more than 2 per cent on the BSE to touch Rs 1,943, taking the company’s valuation close to Rs 11.8 lakh crore. In comparison, HDFC Bank shares declined over 2 per cent during the trading session, dragging its market capitalisation to nearly Rs 11.7 lakh crore.

Despite the reshuffle, Reliance Industries continues to hold the top spot among India’s listed firms, with a market capitalisation of roughly Rs 18 lakh crore.

The latest development highlights a broader trend on Dalal Street, where telecom companies are increasingly attracting investor confidence compared with traditional banking giants.

Over the last five years, Airtel’s stock has delivered a massive 270 per cent return, significantly outperforming HDFC Bank, which has gained around 49 per cent during the same period. Market experts believe the divergence reflects the telecom sector’s improving earnings visibility, expanding digital opportunities, and strong cash flow outlook.

Meanwhile, HDFC Bank has faced multiple challenges in recent years, including post-merger integration pressures, intensified competition from state-owned lenders, and governance concerns following the resignation of its chairman.

Apart from Reliance Industries, the country’s top market-cap companies currently include ICICI Bank, SBI, TCS, Bajaj Finance, Larsen & Toubro, Hindustan Unilever, and LIC.

Brokerages Remain Bullish On Airtel

Global brokerages continue to maintain a positive stance on Bharti Airtel, citing multiple growth drivers beyond mobile services.

BofA Securities has assigned a target price of Rs 2,320 to the stock. "We see Bharti witnessing good market share gains, healthy momentum in non-cellular business segments and an upside optionality from data centre business," the bank said. "We expect Bharti's FCF to continue to inch up going ahead as competition is stable-to-declining and we don't foresee any material capex increase ahead."

JP Morgan has projected a March 2027 target price of Rs 2,250 and identified several catalysts for future upside. "Growth in adjacencies, deleveraging and rising dividends should be the key catalysts for the stock."

Source: India Latest News, Breaking News Today, Top News Headlines | Times Now