Among brokerages, Jefferies prefers MGL and Gujarat Gas over IGL, while CLSA reiterated 'sell' on all 3 OMCs. Here are the top brokerage calls for the day:
Jefferies on Gas Utilities: The brokerage continues to prefer Mahanagar Gas and Gujarat Gas over Indraprastha Gas. The sharp rise in taxes on petrol and diesel is positive for city gas companies.
CLSA on OMCs: The brokerage reiterated 'sell' call on BPCL, HPCL, and IOC and sharply cut their earnings estimates and target price. It added that refining margins may stay subdued as global growth keeps demand uncertain.
Jefferies on Sun Pharma and Dr Reddy's: The brokerage expects Sun Pharma to report 21 percent earnings CAGR over FY20-22 versus 14 percent for Dr Reddy's.
CLSA on Pharma: The brokerage believes that the earnings momentum will continue and prefers a stock-specific approach after the broad-based rally.
Jefferies on Properties: The brokerage initiated 'buy' across its coverage with Godrej Properties as the top pick.
CLSA on Metals: As per the brokerage, 2020 is turning out to be similar to the last downcycle of 2015. Weak domestic demand and global impact of COVID-19 remain key concerns, it added.