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Top brokerage calls for September 3: Morgan Stanley 'underweight' on PNB, Canara Bank; Nomura bullish on M&M

Updated : 2019-09-03 08:12:28

Indian shares are likely to open little changed on Tuesday, tracking muted Asian peers, as concerns over the sluggish economic growth coupled with US-China trade frictions are likely to limit gains. At 7:10 AM, the SGX Nifty futures traded lower by 0.07 percent, or 8 points, at 10,933.50, indicating a weak start for the Sensex and Nifty. Here are the top brokerage calls for today:

<strong>Morgan Stanley on PSB Merger:</strong> PSU bank consolidation a good long-term move, but could weigh on near-term growth, said Morgan Stanley in a report. The brokerage remained 'underweight' on Punjab National Bank and Canara Bank post-merger announcement and reduced earnings/target across PSU banks.
Morgan Stanley on PSB Merger: PSU bank consolidation a good long-term move, but could weigh on near-term growth, said Morgan Stanley in a report. The brokerage remained 'underweight' on Punjab National Bank and Canara Bank post-merger announcement and reduced earnings/target across PSU banks.
<strong>Nomura on Auto Sales:</strong> Industry volumes down sharply with PVs down 33 percent year-on-year. The brokerage maintained 'reduce' on Eicher Motors and TVS while M&M is the only 'buy' rated stock among OEMs due to attractive valuation.
Nomura on Auto Sales: Industry volumes down sharply with PVs down 33 percent year-on-year. The brokerage maintained 'reduce' on Eicher Motors and TVS while M&M is the only 'buy' rated stock among OEMs due to attractive valuation.
<strong>Citi on PSB Merger:</strong> PSU Bank consolidation should strengthen the system, Citi said. It also added that the consolidation will make capital and talent Management easier. The brokerage upgraded Bank of Baroda to 'buy' from 'neutral' post the announcement.
Citi on PSB Merger: PSU Bank consolidation should strengthen the system, Citi said. It also added that the consolidation will make capital and talent Management easier. The brokerage upgraded Bank of Baroda to 'buy' from 'neutral' post the announcement.
<strong>CLSA on PSB Merger:</strong> Consolidation is a long-term positive but near-term risk remains, said CLSA in a report. It added that the PSB merger announced could be the finale of PSU Bank mergers and SBI and private banks will be better placed to gain market share.
CLSA on PSB Merger: Consolidation is a long-term positive but near-term risk remains, said CLSA in a report. It added that the PSB merger announced could be the finale of PSU Bank mergers and SBI and private banks will be better placed to gain market share.
<strong>Morgan Stanley on Auto Sector</strong>: According to the brokerage, any cut in GST rate will have a direct impact on end-consumer prices. It is 'overweight' on Maruti Suzuki and Ashok Leyland. Hero Moto could be a key beneficiary as it has a large BS-IV inventory, the brokerage added. Meanwhile, Tata Motors and Bajaj Auto could lag the sector if there were a GST cut linked stock rally, Morgan Stanley noted.
Morgan Stanley on Auto Sector: According to the brokerage, any cut in GST rate will have a direct impact on end-consumer prices. It is 'overweight' on Maruti Suzuki and Ashok Leyland. Hero Moto could be a key beneficiary as it has a large BS-IV inventory, the brokerage added. Meanwhile, Tata Motors and Bajaj Auto could lag the sector if there were a GST cut linked stock rally, Morgan Stanley noted.
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