Top brokerage calls for July 17: Jefferies, Citi raise price target for Federal Bank; HSBC maintains 'hold' on Maruti

SUMMARY

Indian benchmark indices are expected to open on a cautious note on Wednesday, tracking losses in global markets. Investors are also cautious amid the ongoing first-quarter earnings season and continued selling by foreign investors. On Tuesday, the BSE Sensex and the NSE Nifty50 advanced led by buying in banking, auto and FMCG stocks. Among brokerages, HSBC maintained 'hold' rating on Maruti Suzuki but cut its target price. Citi and Jefferies raised price target for Federal Bank. Here are the top brokerage calls for today:

By CNBC-TV18Jul 17, 2019 8:13:55 AM IST (Updated)

Jefferies on Federal Bank: The brokerage maintained a 'buy' call on the stock and raised the target to Rs 125 per share from Rs 114 earlier. It said that Q1 earnings are in-line with estimates and promise a steady improvement.

Citi on Federal Bank: The brokerage maintained 'neutral' call on the stock and raised the target to Rs 120 per share from Rs 110 earlier. It noted that the company's loan growth slowed a bit to 19 percent YoY but retail was strong.

HSBC on Maruti: The brokerage maintained 'hold' rating on the stock but cut its target to Rs 6,800 per share from Rs 7,200 earlier. It added that volume decline may offset benefits from benign commodities and price increase.

Citi on Cummins India: Citi maintained a 'neutral' stance on the stock and said the company's margin will get impacted as the share of exports dips. It also added that resignation of its MD Sandeep Sinha can weigh on the near-term stock performance.

Citi on Steel companies: The brokerage has a 'sell' call on JSW Steel, SAIL, and Tata Steel amid price and leverage concerns on China worries.