Top brokerage calls for November 25: CLSA bullish on ICICI Bank, Axis Bank, 'underweight' on TCS, Infosys

SUMMARY

Indian shares are likely to open flat-to-positive as the global markets surging on the back of optimistic comments on the trade deal between the US and China would support the domestic indices, however, the political developments in Maharashtra could limit the gains. Among brokerages, CLSA retains 'buy' on Airtel and a 'sell' on Vodafone Idea. Here are the top brokerage calls for Monday:

By CNBC-TV18Nov 25, 2019 8:22:48 AM IST (Published)

CLSA on Telecom: The brokerage retains a 'buy' on Bharti Airtel and has raised its target price to Rs 515 per share from Rs 415 earlier. However, the brokerage maintains a 'sell' call on Vodafone Idea and has lowered its target price to Rs 5.5 from Rs 7 earlier.

CLSA Market Strategy: For market breadth to improve, broader economic growth outlook needs to improve, said the brokerage. It also believes that the deceleration trend in growth is close to bottoming out. Among index heavyweights, it continues to like RIL, ICICI Bank, Axis Bank, and HDFC and maintains 'underweight' on TCS, Infosys, HUL and ITC.

CLSA on Consumer Staples: According to the brokerage, deceleration was seen in growth but tax bonanza helped earnings. It added that volume growth and same-store growth mirrored weakness, except in Asian Paints and Varun Beverage. However, management commentary remained cautious on slowdown concerns, it added.

Morgan Stanley on Oberoi Realty: The brokerage is 'overweight' on the stock with a target at Rs 633 per share. Funding to both developers and homebuyers is getting difficult, said the brokerage, adding that lenders are helping drive industry consolidation.

Credit Suisse Market Strategy: As per the brokerage, it is unlikely that FY20 would see any growth in EPS. It also added that FY21 should also see meaningful cuts in EPS.

It remains positive on well-capitalised banks like HDFC Bank, ICICI Bank, and SBI, rate sensitives and metals.

Credit Suisse on Aurobindo Pharma: The brokerage maintains a 'neutral' call on the stock with a target at Rs 500 per share. Unit IV will likely require a re-inspection to resolve Form 483 observations, said the brokerage, adding that approvals from Unit IV may be stuck for at least one year.