Top brokerage calls for September 11: CLSA bearish on Wipro, bullish on TCS; HSBC cuts price target for Escorts

SUMMARY

The Indian market is likely to open on a strong note on Wednesday, tracking positive global cues, on hopes of diminishing US-China tensions ahead of the US Fed policy meeting later this month. Asian stock market held firm with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.10 percent and Japan's Nikkei gaining 0.32 percent. Among brokerages, HSBC is bullish on Escorts and maintains 'hold' for Glenmark, while CLSA is positive on HCL Tech, TCS, and Axis Bank. Here are the top brokerage calls for Wednesday:

By CNBC-TV18Sept 11, 2019 7:56:48 AM IST (Published)

HSBC on Escorts: The brokerage is bullish on the stock but cut its target to Rs 770 per share from Rs 980 earlier. It said that tractor demand may bottom out in the second half of FY20, adding that the company has reduced inventory in the recent months.

CLSA on Wipro: The brokerage has 'sell' call on the stock with a target of Rs 220 per share. While digital growth is comparable, overall growth rates lag peers, the brokerage said, adding that it expects the company to remain at the bottom of its peer growth range in FY21.

CLSA on TCS: The brokerage maintained 'buy' call on the stock with a target of Rs 2,570 per share. CLSA is bullish on the stock for industry-leading growth and quality and added that deal wins and strong execution indicate a sustained growth recovery.

Macquarie on NCC: The brokerage has an 'outperform call on the stock but cut its target to Rs 108 from Rs 122 per share. The company remains the best midcap pick for the brokerage in the construction space as the balance sheet is in decent shape.

HSBC on Glenmark: The brokerage maintained 'hold' call on the stock but cut its target to Rs 435 per share from Rs 480 earlier. The company aims to reduce debt by Rs 700-800 crore per year, the brokerage added.

CLSA on Axis Bank: The brokerage has a 'buy' rating on the stock with a target of Rs 900 per share. CLSA expects a turnaround in earnings of the company from FY20.

CLSA on HCL Tech: The brokerage is bullish on the stock with a target of Rs 1,380 per share. It added that the company's digital business has lagged peers but is accelerating and leveraging partnerships could drive its cloud business.