Top brokerage calls for August 8: CLSA maintains 'sell' on Tata Steel; Nomura bullish on HCL Tech

SUMMARY

Indian benchmark indices are likely to open flat on Thursday amid rising tensions between India and Pakistan over Kashmir issue. Asian shares traded mixed as easings by central banks stoked fears of the global recession. Among brokerages, CLSA downgraded Cipla to 'sell' from 'outperform and cut its price target, while, Nomura had a 'neutral' rating on the stock. Citi prefers HPCL and BPCL to IOC, among oil marketing companies and CLSA is bearish on Tata Steel and M&M. Here are the top brokerage calls for Thursday:

By CNBC-TV18Aug 8, 2019 8:29:04 AM IST (Published)

Nomura on HCL Tech: The brokerage gave a 'buy' rating on the stock with a TP of Rs 1,270 per share. It added that the improvement in organic growth led by better than expected ramp-up in large deals is positive.

Citi on HPCL: The brokerage gave a 'buy' call on the stock and a TP of Rs 360 per share. It maintained a positive view on the OMCs as political uncertainty is behind and prefered BPCL and HPCL to IOC.

CLSA on Tata Steel: The brokerage has a 'sell' rating on the stock with its target cut to Rs 320 per share from Rs 395. It added that weakening margin took a toll on financial performance and the standalone margin held up QoQ but should fall in Q2.

Credit Suisse on Lupin: The brokerage has an 'outperform' call on the stock with a target at Rs 860 per share. India sales growth lower than expected but still good considering peers’ growth, it added.

Citi on Lupin: The brokerage has a 'sell' call on the stock with a target at Rs 710 per share. Stronger US revenue helped offset slower-than-expected growth in other markets, it said, adding that continuing challenges in key markets and rich valuations remain a concern.

Deutsche Bank on RBI Policy: The brokerage expects MPC to cut policy rates by another 40 bps in the rest of this financial year but to pause on the October 4 policy meet. It also added that there could be more downside risks to GDP growth if NBFC sector problems linger