Top brokerage calls for April 2: Credit Suisse bearish on auto stocks, Citi prefers Infosys in IT space

Updated : April 02, 2019 08:06 AM IST

Credit Suisse on Auto Sector- Consumer sentiment remains weak

Citi on IT Sector- Remain selective on Indian IT given challenges to profitable growth

Citi on NTPC- Buy call, target raised to Rs 153 from Rs 147.50 per share

Indian shares are set for a mixed start on Tuesday amid caution ahead of the Reserve Bank of India's monetary policy later this week. after a record rally in the Sensex in the previous session.

At 07:25 AM, the SGX Nifty, an early indicator of the Nifty 50's trend in India, was up 0.09 percent at 11,744.50, indicating a mixed start for the Sensex and Nifty.

On Monday, the 30-share BSE Sensex hit an intraday record high of 39,115.57, before closing 198.96 points higher at 38,871.87. The Nifty50 rose 45.25 points to close at 11,669.15.

Among brokerages, Credit Suisse remained bearish on the auto space, while Citi is selective on the IT sector. Citi has maintained a 'buy' call on NTPC and raised its target price to Rs 153 per share. Morgan Stanley is overweight on SBI with a target price of Rs 425.

Here are top brokerage calls for Tuesday:

Credit Suisse on Auto Sector

- Consumer sentiment remains weak

- March sales were also impacted partially by shift in festive season

- Vinod Dasari joining Royal Enfield as CEO will be seen positively

- Maruti surprised positively with nearly flat domestic volumes

- LCVs have likely grown this month but the pace has moderated

- While tractors disappointed overall, Escorts was relatively better than M&M

Citi on IT Sector

- Remain selective on Indian IT given challenges to profitable growth

- Infosys and HCL Tech are the top picks in large-cap space

- L&T Infotech is our top mid-cap pick

- Maintain sell call on TCS and Wipro

- For Infosys, we expect a decent Q4 on revenue

- Infosys margin likely to be at the lower end of guidance

- For TCS, Q4 may be decent, commentary on outlook will be watched

- For Wipro, expect Q1 revenue growth guidance at 0.5-2.5 percent

Citi on NTPC

- Buy call, target raised to Rs 153 from Rs 147.50 per share

- FY19 capacity commercialisation at 1,475 MW vs target of 4.8 GW

- Pakri Barwadih coal mine to aid coal supply further

- Coal situation at thermal power plants across the country has improved

- While we like NTPC, we prefer PowerGrid and CESC

Morgan Stanley on SBI

- We see less than 30% return in our base case and 90% in our bull case.

- Credit costs should drop sharply in F20, with loan growth picking up and NIM improving

- There's concern about SBI being used to bail out weak entities.

- Overweight on the stock with a target price of Rs 425 per share

Also, catch all the action and updates in our Market Live blog.

Top brokerage calls for April 2: Credit Suisse bearish on auto stocks, Citi prefers Infosys in IT space

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