CLSA positive on Indian IT, Infosys top pick: Check top brokerage calls for Thursday

Benchmark indices are likely to remain range-bound following tepid Asian shares, which rose marginally in early trade on Thursday, with caution prevailing as investors awaited further details on US-China trade negotiations.

On Wednesday, the Nifty50 closed above 11,000 levels for the first time since February 7, 2019. It rallied 65.55 points to end at 11,053 while the S&P BSE Sensex climbed 193 points to close at 36,636.

Infosys and Zee Entertainment are among the top brokerage picks for Thursday. CLSA is positive on Indian IT stocks after the Indian IT hiring grew for the 10th successive month.

- Indian IT hiring grew for the tenth successive month, up 36 percent year-on-year in January

- US unemployment rate stable at 3.8 percent and initial jobless claims declined

- Overall, there is a gradual demand improvement for leading firms

- HCL Tech and Infosys offer the most value, while TCS offers momentum

- Buy call, target at Rs 930 per share

- Supply pressures, attrition in control

- The company is enjoying a better-than-expected demand environment

- Verticals like banking, financial services, healthcare and communications seem stronger

- Positive on improving growth outlook

- Top Pick in the Indian IT sector

- Forecast return Of equity (RoE) at 9 percent by FY24 from 3 percent in FY20e

- Underweight rating on the stock

- Buy rating, target at Rs 670 per share

- Management change is unlikely post stake sale

- Recent rally will reduce the risk of further invocation of pledges by lenders

- Strategic stake sale will likely be at a premium

- Stock trading at 15 percent discount to 10-year average valuation

-Physical progress of UDAY on key parameters is lacking as compared to its ambitious targets

- States have made limited progress on augmentation of physical infrastructure

- Spike in dues of discoms towards utilities probably driven by bank funding constraints

- Reiterate outperform on Power Grid and NTPC