These are Friday's biggest brokerage calls: Crompton Consumer, Bharti Airtel, Reliance Industries and more

SUMMARY

Domestic markets are set for a subdued start on Friday, a day after the Supreme Court dismissed telecom companies' review of its verdict on the adjusted gross revenue (AGR). Moreover, trade sentiment will remain cautious amid the ongoing quarterly earnings season. Here are the top brokerage calls for Friday:

By CNBC-TV18Jan 17, 2020 9:13:10 AM IST (Updated)

Citi on AGR Judgment: The brokerage maintains a 'buy' rating on Reliance Industries and Bharti Airtel. It said situation is precarious for Vodafone Idea after the AGR judgment by the Supreme Court, given the liability equates to over two times its current market capitalisation.

CLSA on Crompton Consumer: The brokerage has an 'outperform' rating with a target price of Rs 290. It said the lighting margins of Crompton Consumer will remain volatile but is on an improving trajectory.

Credit Suisse on AGR Judgment: The global brokerage says risks to telecom exposure to banks have increased after the Supreme Court dismissed review petitions of telecom companies on Thursday in the ‘adjusted gross revenue’ case against the government.

Edelweiss on AGR Judgement: The brokerage maintains a positive stance on Bharti Airtel and Reliance Jio. It says Bharti Airtel would be able to repay the AGR dues and gain market share. Also, the onus of ensuring the market structure does not move to a duopoly lies with the government, it added.

IIFl on AGR Judgment: The brokerage has picked Bharti Airtel and Reliance Industries while also saying that it is likely the government will end its silence and spread out payments over a long period. Spread out payments plus tariff increases are a feasible combination for the sector, it added.

Nomura on AGR Judgment: The brokerage says the Supreme Court AGR verdict is negative for banks particularly exposed to Vodafone Idea, especially SBI and IndusInd Bank. ICICI Bank too has considerable exposure. Also, the remote possibility of a Yes Bank merger is a key risk to its 'buy' rating.