Top brokerage calls for December 16: Morgan Stanley 'overweight' on Sun Pharma; Nomura raises TP for IndusInd Bank

SUMMARY

Indian shares are likely to open on a cautious note on Monday following mixed trades in global markets and amid concerns about the economic slowdown. However, positive development on the US-China trade deal may support equities. Among brokerages, Morgan Stanley is 'overweight' on Sun Pharma, while Credit Suisse is bullish on IndusInd Bank.

By CNBC-TV18Dec 16, 2019 8:16:47 AM IST (Updated)

Morgan Stanley on Sun Pharma: The brokerage has an 'overweight' call on the stock with a target at Rs 530 per share. As per the brokerage, it is difficult to assess the severity of Halol observations at this point. The brokerage is positive on the company in view of projected earnings growth.

Morgan Stanley on November trade data: Exports and imports contracted at a slower pace, said the brokerage, adding that trade deficit widened to $12.1 billion in November versus $11 billion in October.

Morgan Stanley Equity Strategy: As per the brokerage, implementation of the FPI limit hike has set the stage for MSCI India's weight to rise. It added that the finance minister on December 13 confirmed the implementation of the budget announcement of July 5.

Nomura on IndusInd Bank: The brokerage maintained a 'buy' call on the stock with a target raised to Rs 1,750 from Rs 1,575 earlier. As per the brokerage, asset side strength should offset its weakness of liabilities.

Credit Suisse on IndusInd Bank: The brokerage maintained the 'outperform' rating on the stock with a target at Rs 1,800 per share. The brokerage expects RoEs to improve 20 percent in FY21.

Citi on Voltas: The brokerage has a 'buy' rating on the stock with a target at Rs 765 per share. US-China trade conflict has benefited the Indian AC industry, it added.

Citi on Oil & Gas: The brokerage maintained positive view on the sector, especially gas stocks. It is positive on RIL on deleveraging plans, pricing recovery in Jio. (Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

Macquarie on ITC: The brokerage maintained an 'outperform' rating on the stock with a target at Rs 376 per share. Concerns with respect to environmental, social and governance (ESG) investing has led to significant underperformance, it added.

Morgan Stanley on JSPL: The brokerage is 'overweight' on the stock with a target at Rs 139 per share. As per a report, the company's bid for Gare Palma Mine could be rejected, said the brokerage. It added that Gare Palma Block could have added Rs 900 crore to the company's EBITDA.