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Top brokerage calls for August 22: Jefferies prefers TCS and Infosys in IT space; Nomura bullish on ICICI Bank, Axis Bank

Updated : 2019-08-22 08:33:56

Indian shares are likely to open little changed on Thursday amid muted trades in global markets and after the Reserve Bank of India (RBI) said weak domestic economic growth prompted an unusual rate cut decision. Asian shares rose marginally following gains in US stocks on the back of strong retail results. At 7.30 am, the SGX Nifty futures traded 22 points, or 0.22 percent, lower at 10,910, pointing to a muted start for the Sensex and the Nifty 50. Among brokerages, Jefferies prefers TCS and Infosys in the IT sector while Nomura is bullish on M&M Finance, Shriram Transport Finance. Here are the top brokerage calls for Thursday:

<strong>Jefferies on IT:</strong> Top tier IT companies reported a very divergent growth in Q1, the brokerage said, adding that overall, there are more positives than negatives on deal pipeline and growth guidance. It prefers TCS and Infosys in the sector.
Jefferies on IT: Top tier IT companies reported a very divergent growth in Q1, the brokerage said, adding that overall, there are more positives than negatives on deal pipeline and growth guidance. It prefers TCS and Infosys in the sector.
<strong>Nomura on Financials:</strong> The brokerage said that growth in retail banks may moderate but asset quality is holding up for now. It continues to prefer corporate banks like ICICI Bank and Axis Bank. Among housing finance companies, the brokerage sees value in M&M Finance and Shriram Transport Finance.
Nomura on Financials: The brokerage said that growth in retail banks may moderate but asset quality is holding up for now. It continues to prefer corporate banks like ICICI Bank and Axis Bank. Among housing finance companies, the brokerage sees value in M&M Finance and Shriram Transport Finance.
<strong>Nomura on KNR Constructions:</strong> The brokerage has a 'buy' call on the stock with a target at Rs 363 per share. According to the brokerage, Q1 is weak due to delayed appointed dates but revenue to be supported by irrigation, which will drive sales and margin.
Nomura on KNR Constructions: The brokerage has a 'buy' call on the stock with a target at Rs 363 per share. According to the brokerage, Q1 is weak due to delayed appointed dates but revenue to be supported by irrigation, which will drive sales and margin.
<strong>Jefferies on LIC Housing:</strong> The brokerage maintains a 'buy' call on the stock with a target at Rs 363 per share. With strong parentage, AAA rating, it is better positioned among most peers, the brokerage said, adding that potential fall in yields could lift the company's incremental spreads.
Jefferies on LIC Housing: The brokerage maintains a 'buy' call on the stock with a target at Rs 363 per share. With strong parentage, AAA rating, it is better positioned among most peers, the brokerage said, adding that potential fall in yields could lift the company's incremental spreads.
<strong>CLSA on Midcap IT</strong>: As per the brokerage, the space is trading in-line with its 3-year average back to levels last seen in 2017. Most midcaps stay optimistic on FY20 growth with generally moderated outlook, it said. L&T Tech is CLSA's top midcap 'buy'.
CLSA on Midcap IT: As per the brokerage, the space is trading in-line with its 3-year average back to levels last seen in 2017. Most midcaps stay optimistic on FY20 growth with generally moderated outlook, it said. L&T Tech is CLSA's top midcap 'buy'.
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