Top brokerage calls for July 5: Morgan Stanley expects FY20 GDP growth at 6.5%, Macquarie downgrades Titan

SUMMARY

The benchmark indices are likely to open on a flat note as investors remain cautious ahead of the Union Budget 2019. On Thursday, the market remained positive for the fourth consecutive session. The BSE Sensex gained 68.81 points to close at 39,908.06 while the Nifty 50 rose 30 points to 11,946.80. Among brokerages, Morgan Stanley is cautiously optimistic on the growth outlook, while CLSA believes the govt will focus on the investment-led model. Here are the other top brokerage calls for Friday:

By CNBC-TV18Jul 5, 2019 8:44:07 AM IST (Updated)

Morgan Stanley on Eco Survey: The brokerage expects the government to focus on reviving private investment and is cautiously optimistic on the growth outlook. It hopes the government provides PSU banks with growth capital.

Nomura on Eco Survey: According to the brokerage, Eco Survey 2019 prescribes fiscal discipline with a dose of investment-led growth and suggests the government’s focus will be on an investment and export-led growth model.

CLSA on Eco Survey: The brokerage says private investment-driven growth would be key and the survey is consistent with Modi's view of continuing with fiscal consolidation.

Kotak Institutional Equities on Eco Survey: The brokerage says that it would be tough to increase GDP growth to 9-10 percent without implementing economic reforms. It expects a 20-40 bps fiscal slippage.

Morgan Stanley on ICICI Prudential: The brokerage maintains 'overweight' call on the stock and says that the company is amongst the few Indian insurers with an early/strong focus on technology.

Macquarie on Consumer Discretionary: According to the brokerage, channel checks suggest sharp moderation in growth over the past 3 months. It downgrades Titan to 'neutral' and cuts earnings for Jubilant Food.

HSBC on Oberoi Realty: The brokerage downgrades the stock to 'hold' as valuation and fund deployment of Oberoi Realty remains a concern.