Brokerage firms are of the view that the results are a mixed bag, but the stock is a good proxy to play the domestic growth story
Mukherjee feels the market could trade between 17x and 18x one-year forward earnings
Top five stocks according to Nomura are ICICI Bank, Axis Bank, L&T, Concor and State Bank of India
Global slowdown, tight financial conditions and political uncertainty in the election year will be the biggest headwinds for growth, the report by Japanese brokerage Nomura has said.
The RBI had on Thursday released the minutes of the MPC, the first under the governorship of the career bureaucrat- turned-central banker Das, which showed a tilt to accommodate growth concerns as inflation cools off.
The monetary and fiscal policies have shifted to easing mode, although it remains cautious on their near-term impact.
Most global brokerage firms see another rate cut by the central bank but at the same time suggested investors remain cautious as transmission of rates will be the key.
"The factors that will affect growth in 2019 are global slowdown, which will impact exports, manufacturing, and the overall investment climate; tight financial conditions and election uncertainty," Nomura India economist Aurodeep Nandi told reporters here.
Credit Suisse maintained its underperform rating on Lupin with a target price of Rs 800 while CLSA maintained its sell rating on Ashok Leyland and slashed its target price to Rs 75 from Rs 85 earlier.
Nomura maintained its buy rating on RIL post Q3 results with a target price of Rs 1480 while CLSA maintained its buy rating on HDFC Bank Ltd post Q3 results and also raised its 12-month target price to Rs 2730.
The swap ratio appears fair in respect to Dena Bank owing to the multiple challenges faced by the bank, and most experts feel that Vijaya Bank shareholders have nothing to gain from this merger.
Global investment banks such as Nomura, Deutsche Bank and CLSA feel that the exit polls might have got BJP thinking on its strategy but the final outcome will be very different.
According to the global financial services major, emerging markets are under pressure as investors re-assess the risks amid monetary policy normalisation in developed markets, trade protectionism and China's economic slowdown.
According to the global financial services major, India's economic recovery has peaked and growth rates are likely to get constrained in the second half of this year.
On Tuesday, the central bank had announced a Rs 1,000 -crore OMO , where it is buying five government securities.
Noting that any MSP hike is inflationary, the report said, "The proposed hike still leaves the MSPs far from maximum and are thus less populist than they appear."
"Third quarter of this fiscal (3QFY18) is likely to be a weak quarter, in line with seasonality (due to lower working days/shutdowns), with 1.2 percent quarter-on-quarter and 7.3 percent year-on-year growth in constant currency terms," Nomura said in a research note.
According to the Japanese financial services major, strengthening of the growth recovery could push a few Monetary Policy Committee (MPC) members towards a "tightening bias".
India's Gross Domestic Product (GDP) growth bottomed-out in the second quarter of 2017 at 5.7 per cent year-on-year, rising to 6.3 per cent in the third quarter, it said.
According to global financial services majors like Nomura, BofAML and Morgan Stanley, price pressures are likely to build further in the coming months following a cyclical recovery in the economy and rise in vegetable and oil prices.
The 'Voyager - Nomura FinTech Partnership' programme in India was launched earlier this year with an aim to build innovative solutions for CMIB that can be deployed across the firm and financial services industry, a company release said.
It believes that a potential reduction in GST rates for malted food drink is a short-term catalyst and it could drive penetration-led growth.
Though the economy has bottomed out in the first quarter and retail inflation may stay under 3 per cent in October, since core inflation is likely to be above 4 per cent, we expect the rates to remain unchanged even in the December policy, said Japanese brokerage Nomura.
According to the Japanese financial services major, a moderation in WPI inflation in the coming months is likely owing to falling vegetable prices and favourable base effects.
According to the Japanese financial services major, consumer firms are expected to report average net sales growth of 8.6 per cent year-on-year with EBITDA growth of 8.4 per cent in the second quarter of this fiscal. Growth in India's consumer sector particularly the household and personal care segment was held back in recent quarters largely due to macro issues.