Top brokerage calls for Sept 4: Morgan Stanley cuts target price for YES Bank; UBS bullish on Infosys

SUMMARY

India's Sensex is likely to recoup losses on Wednesday on the back of short-covering after the benchmark index posted its biggest one-day fall in 2019 in the previous session. At 7:00 AM, the SGX Nifty Futures traded higher by 0.30 percent, or 32.50 points, at 10,852, indicating a slightly positive start for the Sensex and the Nifty. Here are the top brokerage calls for today:

By CNBC-TV18Sept 4, 2019 8:46:48 AM IST (Updated)

Macquarie on Balkrishna Industries: Macquarie has initiated 'underperform' on Balkrishna Industries with a price target of Rs 575 per share as it believes that the company faces headwinds led by weakness in global agriculture and mining activities. It also believes that the return on equity is set to decline over the next two years.

UBS On Infosys: UBS has maintained 'buy' on Infosys with a price target of Rs 850. The brokerage said that the stock's higher FY20 revenue visibility and margin improvement will help it outperform. Expect operating margin to start trending upwards from Q2FY20, it said in a report.

Morgan Stanley On HDFC AMC: Morgan Stanley downgraded HDFC AMC to 'equalweight' from 'overweight' but raised the price target to Rs 2,650 from Rs 2,300 earlier. The brokerage said that no upfront commissions, cut in promotional expense and loyalty programs pushes the costs lower.

Morgan Stanley on Oberoi Realty: Morgan Stanley has maintained an 'overweight' rating on the stock with a price target of Rs 633. The company recently concluded Rs 889 crore Thane land transaction with GSK Pharma.

Morgan Stanley On YES Bank:Morgan Stanley maintained 'underweight' on YES Bank and cut the target price to Rs 55 per share from Rs 95 earlier as the volatility shows asset quality concerns, lack of clarity on timing and price of further fundraising.

Morgan Stanley On IGL:Morgan Stanley has maintained 'overweight' on Indraprastha Gas Limited with target price set at Rs 351. The company raised CNG prices by Rs 0.5/kg this week and it expects another hike of Rs 0.7/kg soon, the brokerage said.

Kotak Institutional Equities On L&T:Kotak Institutional Equities has maintained a 'buy' on Larsen & Toubro with a price target of Rs 1,545 per share after strong order wins in the month of August. L&T has an estimated order wins of Rs 55,000-60,000 crore during May-August, added the brokerage.