Top brokerage calls for December 10: Kotak upgrades HDFC to 'buy'; Morgan Stanley 'underweight' on RBL Bank

SUMMARY

Indian shares are likely to open flat on Tuesday, tracking Asian shares, which were a tad lower as investors refrained from making major bets before December 15 when the next round of US tariffs on Chinese imports is due to take effect. Among brokerages, Kotak upgraded HDFC Bank to 'buy', while Morgan Stanley remained 'underweight' on RBL Bank. Here are the top brokerage calls for Tuesday:

By CNBC-TV18Dec 10, 2019 8:17:05 AM IST (Published)

Kotak Institutional Equities on HDFC: The brokerage upgraded the stock to 'buy' from 'add' and raised its target price at Rs 2,600 per share form Rs 2,400 earlier. According to Kotak Institutional Equities, the company will be a key beneficiary of consolidation in the NBFC sector.

Morgan Stanley on RBL Bank: The brokerage was 'underweight' on the stock with a target at Rs 240 per share. Morgan Stanley said that it was staying underweight given uncertain asset quality outlook.

Morgan Stanley on Reliance Industries: The brokerage was 'overweight' on the stock with a target at Rs 1,753 per share. It added that the telecom tariff increase should raise returns on $50 billion of investments. (Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

Morgan Stanley on Sun Pharma: The brokerage was 'overweight' on the stock with a target at Rs 530 per share. Positive operating leverage will play out for the company in the next few quarters and may lead to high-teens earnings growth, said the brokerage.

Nomura on Dr Reddy's: The brokerage had a 'buy' rating on the stock with a target at Rs 3,200 per share. The company’s focus remains on appropriate capital allocation, cost control, the brokerage noted. It added that China and hospital institutional sales expected to scale up substantially.

Kotak Institutional Equities on Tata Motors: The brokerage had a 'buy' rating on the stock with a target at Rs 200 per share. JLR was on track to achieve its cost reduction targets ahead of its initial deadline, said the brokerage. It added that recovery in volumes in China for JLR is encouraging.

Credit Suisse Market Strategy: According to the brokerage, a sharp slowdown in economic growth is led by industry, exacerbated by de-stocking. It added that narrow market performance should continue at least until mid-year.