Winter session of Parliament: Check out stocks to bet now

The government braces for a stormy winter session of parliament as BJP says Parliament will not function unless the government agrees on a vote on FDI in retail. Meanwhile Network18 sources indicate that Mayawati has asked her MPs not to side with the opposition on FDI- as Mamata Banerjee gets ready to bring a no-confidence motion today.

Most brokerages feel that this session is going to be dampener too as not many Bills are expected to be passed. (Take a look: Top 10 pending Bills to watch out for in winter session of Parliament)

Here is a look at what the brokerages are expecting:
 
Credit Suisse

• Not too many Bills on agenda will be passed likely to be passed
• Corruption allegations vitiated politics
• Wildcard:TMC proposal for no-confidence motion

CLSA

• Stormy session likely
• See no threat to government in the near-term
• Few takers for no confidence motion against govt
• FDI in retail to face strong protest
• A motion on FDI in retail under Rule 184 likely
• UPA has adequate support in Lok Sabha

Nomura

• Expect Companies Bill, Competition Bill, Banking Law and Forwards Contract Bill to sail through smoothly, but Insurance, Pension and Land bills may face much more opposition.
• A no-confidence motion may or may not be raised, but don’t see the government at risk. Even a discussion about FDI in multi-brand retail will lead to heated debates and could disrupt parliamentary proceedings.

Nilesh Shah, MD & CEO, Envision Capital

• This winter session will probably be the best we have seen in recent times.
• It looks like various legislations relating to the Finance Bill and FDI in pension, insurance may be passed.
• The more critical ones like the land acquisition or developments like NIB are probably a lot more critical and there has not been much progress on that.
• The session is going to be very useful and productive. However, not very sure if it will be productive enough or a catalyst to drive the market to breach the recent highs and take it to new highs.

Top bets for the day

Deutsche Bank has downgraded Dabur to a sell with a target of Rs 110. Dabur has underperformed the FMCG index by 30% due to poor volume growth and a slowing earnings growth trajectory in the domestic business. The hair oil and international business remain in a declining revenue growth trajectory.

Macquarie has an outperform rating on MphasiS with a target of Rs 415. The fall in the stock price yesterday was uncalled for as interactions with the management indicate the company has held on to it’s pricing during its annual price renegotiations with HP.

Morgan Stanley has an overweight rating on Cipla with a target of Rs 437. The Cipla-Medpro deal will help the company reduce the high dependence on its partners for international marketing and sales.

Macquarie has an outperform rating on Coal India with a raised target of Rs 450. Their revised growth plan, which forecasts 7% volume growth, could lead to a doubling of profits in four years. Separately, Coal India can resort to a 10% equity buyback which can add 5-6% to EPS, if done at Rs 400 a share.