Top brokerage calls for September 12: HSBC prefers HUL, Avenue Supermarts in FMCG space; Citi bullish on Tata Power

SUMMARY

Indian shares are likely to extend gains on Thursday, tracking gains in Asian peers, ahead of the August retail inflation data, due later today. Hopes of fresh initiatives from the government to revive the automobile sector may add to the positive sentiment. Among brokerages, HSBC is bullish on HUL, Avenue Supermarts, while Citi is 'neutral' on Motherson Sumi. Here are the top brokerage calls for Thursday:

By CNBC-TV18Sept 12, 2019 8:01:39 AM IST (Published)

HSBC on Consumer: The slowdown persists but growth does not seem to be falling off a cliff, the brokerage noted. It added that Kirana stores are here to stay and are strengthening. It prefers Avenue Supermarts and HUL in the FMCG space.

Citi on Tata Power: The brokerage has a 'buy' call on the stock with a target of Rs 76 per share. The company does not expect consent for Mundra UMPP before Maharashtra, Haryana elections, it said, adding that at current coal prices, the tariff hike could be Rs 0.40-0.50 per unit.

Credit Suisse on Auto: Passenger vehicle and two-wheeler registrations weakened further in August and September, and the GST rate cut to support the sector would add to the burden, the brokerage said. It added that case for a cut on the lower end for two-wheelers is fairly strong versus passenger vehicles and commercial vehicles.

CLSA on Infra: The brokerage prefers L&T, Sadbhav Engineering, IRB, NCC, and JKumar Infraprojects among infra stocks. Road Minister said that funding is not a problem

and new avenues are opening such as the securitisation of tolls, the brokerage noted.

It expects large National Highway orders to start from Q3.

Morgan Stanley on Apollo Hospitals: The brokerage is 'overweight' on the stock with a target of Rs 1,667 per share. The brokerage expects the promoter's pledge to reduce from the current 78 percent to 20 percent by 2019-end. It is bullish on the stock on positive EBITDA momentum.

Kotak Institutional Equities on Tata Motors: The brokerage has a 'buy' call on the stock with a target of Rs 190 per share. It expects JLR volumes to pick up from FY2021. The standalone business remains under pressure due to a general slowdown, the brokerage added.