Tuesday's biggest brokerage calls: HDFC Bank, IGL and more

SUMMARY

The Indian markets are likely to open higher following gains in Asian markets after various countries announced stimulus measures to combat the economic impact of the coronavirus outbreak. Among brokerages, Morgan Stanley is bullish on HDFC Bank but cut its target. Here are the top brokerage calls for today:

By CNBC-TV18Mar 24, 2020 8:19:37 AM IST (Published)

Morgan Stanley on HDFC Bank: The brokerage is 'overweight' on the stock but cut its target to Rs 1,285 from Rs 1,470 earlier. Uncertainty due to lockdown will keep the stock volatile, it added.

Morgan Stanley on IGL: The brokerage is 'overweight' on the stock with a target at Rs 471 per share. Strong FCF and net cash must help company weather demand challenges, it added.

Morgan Stanley on IDFC First Bank: The brokerage is 'underweight' on the stock and cut its target to Rs 15 from Rs 24 earlier. It also cut the loan growth forecast given the weaker environment.

Morgan Stanley on IndiGo: The brokerage is 'overweight' on the stock with a target at Rs 2,057 per share. The company is well placed among peers to weather the potential downturn.

Morgan Stanley on Ashok Leyland: The brokerage is 'overweight' on the stock but cut its target to Ts 64 from Rs 111 earlier. It also cut FY21 earnings estimated by 60 percent and FY22 by 30 percent.

Deutsche Bank on Macros: The brokerage expects RBI to cut the policy rate by at least 100 bps in the next few months and 50-60 bps by April 3.

Morgan Stanley India Strategy: The brokerage cut earnings estimate for the third time after the outbreak. FY21 Sensex EPS growth is now 1t 10 percent, down 20 percent from mid-February, it said.