The brokerage house downgraded Cairn India to neutral from outperform and cut its target price by 19 percent to Rs 267 while it suggested a shift to top-pick ONGC.
SAIL looks cheap on asset valuations, but its competitive advantage has reduced by USD65-70/tonne due to a sharp fall in global iron ore prices, says Macquarie
Despite the outperformance relative to global markets, the Indian market is still below previous valuation peaks, says Rakesh Arora, Macquarie.
GPPV announced a tariff hike in container cargo related charges effective January 1, 2015. It has increased terminal handling charges for rail and road containers by 15 percent and 6 percent, respectively.
Suresh Ganapathy recommends buying HDFC Bank and is bullish on the stock with a longer-term view. He also likes Axis Bank and ICICI Bank from the space.
With RBI indicating that a rate cut is some time away, we expect the market to consolidate, says Rakesh Arora of Macquarie.
CLSA maintains a buy rating as it believes domestic economy is already showing some signs of revival which bodes well for the core business of L&T.
Rakesh Arora of Macquarie says, "Almost after a gap of 5 years Domestic Mutual Funds (MFs) have turned net buyers of Indian markets and have bought shares worth USD 4bn since the national elections in May."
However, Macquarie has an outperform rating on the stock with a target of Rs 220 per share but has cut FY15/ FY16E earnings per share to Rs 23.60/Rs 30.30.
CLSA has maintained its underperform rating on the stock stating re-farming remains a risk to the stock. The brokerage has raising its FY15-17 revenue and EBITDA estimates by 2-3 percent.
Operating profit of the cement company spiked 29.2 percent year-on-year to Rs 877 crore and margin expanded by 120 basis points to 16.2 percent during the same period, but impacted by higher fuel and freight cost.
Dilip Bhat of Prabhudas Lilladher says even if an investor has a healthy risk appetite he should perhaps wait for some more time before buying DLF.
With maintaining buy, CLSA also said USD 14 billion downstream expansions should drive doubling of Reliance‘s USD EBITDA over next three years after falling for three years. It believes that this may also drive a doubling in the stock price during this period.
â€œStocks to position for the results on positive side include India Cements, Crompton, YES Bank, Hero Motocorp and Strides Arcolab," says Rakesh Arora, Macquarie.
Viktor Shvets of Macquarie says, "We re-balanced our portfolio by moving Indonesia from Neutral to Underweight. Most of the funds were relocated to India (O/W) and Taiwan (U/W)."
Rakesh Arora of Macquarie believes post a 5 percent rally in the past one month, the market is taking a pause.
"The Middle East and Africa, no question about it, is a greater systemic risk. Flare-ups in Nigeria, Syria, Iraq, potentially Libya, Saudi Arabia, and Kuwait are far more significant than Russia and Ukraine," said Viktor Shvets, head of Asia strategy research at Macquarie.
Brokerages are bullish on it post the divestment. Macquarie maintains an outperform rating on the stock with target of Rs 140, stating that divestment in remaining international business would make it almost debt-free.
During the last earnings call, Strides Arcolab had highlighted that from USD 390 million of receivables from Mylan, it expects contingent holdback (of USD 250 million) to get released in Q2 FY15. With 20 days left for Q2FY15 end, dividend could be a near-term catalyst.
Macquarie maintains outperform rating on the stock with a target price of Rs 447. According to the brokerage, the stress on incremental asset quality of the bank is easing.
Investors have been buying oil marketing stocks like HPCL and BPCL with a hope to see zero losses on diesel. Earlier, the government has also said the under-recovery on high speed diesel (HSD) applicable for first fortnight of September will go down to Rs 0.08 per litre. This was Rs 1.78 per litre during second fortnight of August 2014.
"Overall if we do get a scenario where the dollar strengthens more broadly - and we do see that - then it will be pretty hard for most EM currencies to remain resilient... But we don't see as an aggressive sell-off as we saw last year," said Dominic Bunning, currency strategist at HSBC.
"Further relative gains are likely in the coming months. Technically strong stocks in India include names like Infosys, ICICI Bank, Axis Bank, ONGC and Apollo Hospitals," says Laurence Balanco, CLSA.
â€œGDP growth in Q1 was higher than consensus at 5.7 percent and the Finance Minister Arun Jaitley believes it will be on the rise. A positive resolution of the coal scam case could act as a catalyst. It's time to buy,â€ says Rakesh Arora, Macquarie.
Morgan Stanley says imminent cash outflow will hurt DLF's already stretched balance sheet and the year-end net debt target of Rs 18,500-19,000 crore will likely worsen.