Monday's top brokerage calls: RBI panel report, pharma sector and more

SUMMARY

RBI, in its latest report, noted that the initial five-year lock-in period for promoter shareholding in banks with a minimum holding of 40 percent may continue but the cap on promoters' stake in the long run of 15 years can be increased to 26 percent from 15 percent currently. Brokerages believe this development will be positive for private banks. Also, CLSA is bullish on pharma on positive outlook commentary by the sector. Here are the top brokerage calls for today:

By CNBCTV18.comNov 23, 2020 8:45:24 AM IST (Published)

Macquarie on RBI Panel Report: Macquarie believes the possibility of corporate houses and NBFCs being given bank licence is very remote. It added that existing private banks like HDFC Bank and ICICI Bank will be long-term winners.

CLSA on RBI Panel Report: CLSA believes RBI Working Group's recommendations are pragmatic and non-disruptive. It feels that overall, the recommendations made by the panel are positive for smaller banks and small finance banks.

Jefferies on RBI Panel Report: The brokerage believes the RBI committee has taken an open-minded approach. The recommendations suggest relaxing a slew of norms with safeguards.

Investec on RBI Panel Report: As per the brokerage, changes recommended by the RBI panel can have far-reaching implications, both positive and negative. RBI is driving the consolidation of the banking system, which is positive for large banks, it added.

CLSA on Pharma: According to the brokerage, pharma outlook commentary has been positive. Sun Pharma, Torrent Pharma & Dr Reddy's are its preferred picks.

CLSA on IT Services: CLSA has a healthy growth outlook and expects margin comfort in the sector. It expects the revenue momentum to remain healthy in the near term.