Top brokerage calls for September 20: CLSA retains 'sell' on Bajaj Auto, TVS Motor; Credit Suisse bullish on HDFC Bank

SUMMARY

Indian shares are likely to open in green on Friday after Reserve Bank of India governor Shaktikanta Das said there is room for more rate cuts. Global equities also edged up as economic stimulus around the world eased fears of economic deceleration. Moreover, hopes of a GST rate cut today to boost the ailing economy also support the shares. Among brokerages, Credit Suisse is bullish on HDFC Bank, while CLSA retains 'sell' call on Bajaj Auto, Hero MotoCorp, and TVS Motor. Here are the top brokerage calls for Friday:

By CNBC-TV18Sept 20, 2019 7:58:28 AM IST (Published)

Credit Suisse on HDFC Bank: The brokerage maintained 'an outperform' rating on the stock, with a target price of Rs 1,350 per share. It said that the bank is well placed despite slowing macro environment, adding that the bank expects market share gains to accelerate as customer acquisition has picked up.

CLSA on 2-wheelers: Margin pressure should persist as companies may find tough to pass on full cost impact, the brokerage said. CLSA retains 'sell' on Bajaj Auto, Hero MotoCorp, and TVS Motor, while, it has an 'outperform' rating on Eicher Motors. It also cut price target of TVS Motor and Eicher Motors.

Nomura Model Portfolio Changes: The brokerage added AIA Engineering to their portfolio and raised their weightage in L&T. In Financials, they raised weightage in ICICI Bank and cut in SBI. The brokerage removed Shriram Transport Finance from its portfolio.

Morgan Stanley on Zee Entertainment: The brokerage was 'underweight' on the stock with a target of Rs 370 per share. The stock will remain volatile on any news flow with respect to debt obligations, the brokerage said. They also added that Essel Group's debt could come down to Rs 6,700 crore by next week.

HSBC on Reliance Industries: The brokerage was bullish on the stock with the TP of Rs 1,475 per share. If zero IUC is delayed, it would be marginally negative for the company's telecom business, the brokerage said, adding that rebound in refining margin and growth in retail and telecom support its FY20 outlook.