Top brokerage calls for January 10: Citi upgrades Dr Reddy's to 'buy'; Morgan Stanley 'overweight' on Maruti

SUMMARY

The Indian market is likely to open flat with a negative bias on Friday after World Bank said that lack of credit and drop in private consumption has led to the gloomy growth outlook for India with a steep cut in rate. At 7:50 am, the SGX Nifty was trading 9.50 points or 0.08 percent lower at 12,265.50, hinting at a flat-to-negative opening for the Sensex and Nifty50. Among brokerages, Citi upgraded Dr Reddy's, Lupin, while Morgan Stanley is 'overweight' on Maruti Suzuki. Here are the top brokerage calls for Friday:

By CNBC-TV18Jan 10, 2020 8:24:24 AM IST (Published)

Citi on Pharma: The brokerage upgraded Dr Reddy's to 'buy' from 'sell' and Lupin to 'neutral' from 'sell'. It added that valuations of pharma companies look more reasonable and Aurobindo Pharma, Biocon are its top picks.

Morgan Stanley on Maruti Suzuki: The brokerage is 'overweight' on the stock with a target at Rs 8,205 per share. It added that valuations look attractive as earnings seen set to turn.

Morgan Stanley on Eicher Motors: The brokerage is 'equal-weight' on the stock with a target of Rs 17,052 per share. It believes share price will fall over in the next 30 days.

Morgan Stanley on Financials: Macro recovery in 2020 is likely to be slow, the brokerage said. It also reduced earnings estimates and sticks to largecap banks led by ICICI Bank and HDFC Bank.

HSBC on Cement: The brokerage retains 'buy' rating on ACC, Ambuja Cements on valuations and maintains 'reduce' on UltraTech Cement and Shree Cements.

Macquarie on United Spirits: The brokerage maintains a 'neutral' rating on the stock with a target of Rs 592 per share. Macquarie's bull case scenario suggests a 20 percent upside on the stock.

Nomura on Sun TV: The brokerage maintains a 'buy' rating on the stock with a target of Rs 689 per share. It expects the company to report a 10 percent decline in ad revenues.