Top brokerage calls for July 3: Citi maintains 'buy' on Tata Power; Credit Suisse positive on IT sector, cautious on pharma space

SUMMARY

Indian benchmark indices are set for a positive start on Wednesday over hopes that the government could announce measures in the fiscal Budget to ease liquidity situation and boost the slowing economy. Meanwhile, US stocks managed modest gains in the previous session. Among brokerages, CLSA maintains 'buy' call on ITC, while Credit Suisse remains positive on IT sector and cautious about the pharma sector. Citi Research expects Tata Power to be a big beneficiary of the regulatory asset liquidation. Here are the top brokerage calls for the day:

By Mousumi Paul Jul 3, 2019 9:03:05 AM IST (Published)

1. Citi Research on Tata Power: The brokerage has a 'buy' rating on the stock with a target of Rs 76 per share. The brokerage says that as per the reports, power regulators may be barred from allowing regulatory asset creation.

2. HSBC Research on Aster DM Healthcare: The research house has a 'buy' rating on the stock with a target of Rs 205 per share. HSBC said that the growing presence in large cities should support margins in India.

3. Credit Suisse on Shriram Transport: It has a 'neutral' rating on the stock with a target of Rs 1,100 per share. The brokerage adds that the FY20 growth is expected to be back-ended, also the group merger is not off the table.

4. Credit Suisse on IT Sector: The research house says that there is weak revenue seasonality for Tech Mahindra and localisation for Infosys. It expects Tech Mahindra and HCL Technologies to recoup margin in Q2 as revenues pick up.

5. CLSA on Pharma Sector: CLSA believes that volume-led growth should be a central theme in medium to long-term.

6. CLSA on ITC: The brokerage maintains 'buy' call on ITC with a target price of Rs 365 per share. It added that the stock is attractive but faces uncertainty due to the potential rise in cess.