Monday's top brokerage calls: Autos, interest waiver case and more

SUMMARY

Among brokerages, Jefferies said a sharp recovery in the auto sector set the stage for a turnaround in financial performance in Q2. Meanwhile, Macquarie believes that cost to the government should not exceed Rs 7,000 crore if it decides to waive interest on interest. Here are the top brokerage calls for the day:

By CNBCTV18.comOct 5, 2020 8:59:05 AM IST (Published)

Jefferies on Auto: As per the brokerage, sharp recovery set the stage for a turnaround in financial performance in Q2. It added that the pick-up was led by gradually improving demand and inventory build-up.

Macquarie on Interest Case: Cost to the government should not exceed Rs 7,000 crore, if it decides to waive interest on interest, says Macquarie.

Edelweiss on Interest Case: Interest burden could be 10-15 bps of loans if the government decides to waive interest on interest, said the brokerage. It added that the plan is a net negative for credit culture and repayment discipline.

Citi on Interest Case: The brokerage believes it’s not possible to waive all interest for all borrowers. It added that there's a need to wait for certain clarifications like process, etc.

Nomura on Trade Data: Exports have returned to 98.4 percent of normal in September while imports have risen at a slower pace to 73.7 percent of normal, said the brokerage. It sees a current account surplus of $43 billion (1.7 percent of GDP) in FY21.