Indian shares are set to open in the green on Tuesday over hopes of a larger-than-expected cut in key interest rates by the Reserve Bank of India later this week. Meanwhile, equities in global markets traded marginally higher on Tuesday as some investors clung to hopes that China and the United States could work towards reaching a deal. Among brokerages, Macquarie is bullish on Indiabulls Housing and Cadila Health, while Credit Suisse remains 'neutral' on Maruti Suzuki. Here are the top brokerage calls for Tuesday:
Macquarie on Indiabulls Housing: The brokerage has 'outperform' rating on the stock with a target of Rs 836 per share. However, the brokerage said that if the company continues to face headwinds from negative sentiment, it may potentially face challenges raising fresh funds. It added that Yes Bank, Bank of Baroda, and IndusInd Bank are the most exposed to the group, while HDFC Bank and Kotak Bank are safer.
Credit Suisse on Maruti Suzuki: The brokerage is 'neutral' on the stock with a target of Rs 6,000 per share. According to the brokerage, part of rally sustained by management's bullish commentary on demand is bottoming out and the brokerage sees limited drivers sustain demand once discounts are withdrawn. It added that if discounts continue at current levels, the margin could be lower than expected.
CLSA on UPL: The brokerage has a 'buy' call on the stock with a target of Rs 720 per share. The stock is trading at attractive valuations and continues to strengthen its India presence, the brokerage said, adding that the company expands its geographical reach via the recent acquisition of Arysta.
Morgan Stanley on UltraTech Cements: The brokerage is 'overweight' on the stock with a target of Rs 4,760 per share. Demerger among Century and Ultratech to be effective from October 1 and the acquisition to be EPS accretive, but margin dilutive in the near term, the brokerage noted.
HSBC on Hindalco: The brokerage reiterated 'buy' rating on the stock with a target of Rs 270 per share. It said that the market is discounting Novelis’s resilient business model and the end market demand for Novelis products remains strong. The expectation of recovery in Aluminium prices makes the company a compelling investment case, it added.
Macquarie on Cadila Health: The brokerage has an 'outperform' call on the stock with a target of Rs 292 per share. Indian pharma companies continue to struggle with monetisation of specialty molecules, the brokerage said, adding that Zypitamag has had a slow ramp-up so far.