Indian shares are likely to open flat on Thursday, tracking mixed trends in Asian peers. At 7:40 AM, the SGX Nifty was trading 2.50 points or 0.02 percent lower at 12,242, indicating a flat start for the Sensex and Nifty50. Among brokerages, Citi is bullish on Maruti, Tata Motors and has raised its target price for Mindtree: Here are the top brokerage calls for Thursday:
CLSA on Infra: According to the brokerage, India’s intent to spend $1.4 billion over 5 years raises more questions than answers. The brokerage suggests buying inexpensive early-cycle plays. It is positive on L&T, Sadbhav, NCC and JKumar Infra or IRB.
Citi on Maruti: The brokerage maintains a 'buy' rating on the stock with a target of Rs 8,400 per share. The company is well-positioned to wade through expected choppiness in demand.
Citi on Tata Motors: The brokerage maintains a 'buy' rating on the stock with a target of Rs 200 per share. Domestic CV and PV volumes remain weak in December, said Citi, adding that it does not think that the CV industry in India will recover very fast.
Citi on M&M: The brokerage maintains a 'neutral' call on the stock with a target of Rs 590 per share. It added that the tractor segment should gain from an expected recovery in the agri sector in FY21.
Citi on Mindtree: The brokerage is 'neutral' on the stock and raised its target to Rs 860 per share from Rs 800 earlier. The company also raised its FY20-FY21 EPS estimates marginally by 0 percent to 2 percent.
Citi on Persistent Systems: The brokerage has a 'sell' rating on the stock but raised its target to Rs 590 per share from Rs 540 earlier. The company needs to deliver a couple of decent quarters for the multiple to rerate, it added.
Citi Market Strategy: The company is 'overweight' on financials, healthcare and industrials and 'underweight' on consumer staples, materials (except cement), and autos.
Kotak Market Strategy: According to the brokerage, the economy-market ‘divide’ seen in CY19 may repeat in CY20. The economy may grow at 5.5 percent and Nifty50 earnings at 25 percent, it added.