Pantaloon Retail Brokerage: Morgan Stanley Rating: OVERWEIGHT Target: Rs 212 Rationale: The FII holding limit for the stock is currently capped at 24%. An increase, post the move to allow 51% fdi in multi brand retail, would likely drive significant re-rating for the stock.
GAIL Brokerage: Bank of America Merrill Lynch Rating: UNDERPERFORM Target: Rs 360 Rationale: Among the three upstream players, who bear subsidy, GAIL will gain the most from subsidized lpg volumes being capped. According to government estimates capping cylinders will cut LPG subsidy by one-third.
Infosys Brokerage: Credit Suisse Rating: NEUTRAL Target: Rs 2500 Rationale: The management has indicated there are unlikely to be any negative surprises seen in the previous two quarters which saw unanticipated drops in volume and pricing. Margins are likely to be stable and absence of revenue write back in the previous quarter will help.
Jet Airways Brokerage: Bank of America Merrill Lynch Rating: BUY Target: Rs 480 Rationale: FDI in aviation is a sentiment booster for the whole sector, but in the near-term it doesn't change the operating environment or the financial stress of the industry.