Dalal Street investment call: Should you sell or buy today? These stocks can be your best bet
Coming back to Fridays(today) trading session, one can expect the benchmark indices to continue the positive trend in Dalal Street. The momentum in Sensex and Nifty today can be attributed to the robust performance given by global peers.
The Indian markets today started on a positive note BSE Sensex opened at 36,015.28 up by 208 or 0.58% and NSE at 10,837.40 up by 57.60 or 0.53%at around 0920 hours. In pre-market opening, Sensex was starring at 36,000 mark, as it was trading at 35911.99. On Thursday, Sensex ended at 35,807.28 above 157.34 points or 0.44%. Nifty 50 also had positive sentiments as it completed at 10,779.80 higher by 49.95 points or 0.47%. Today's performance can be attributed to the robust performance given by global peers.
Gainers on BSE involved Yes Bank trading at Rs 181.75 up by 1.79%, Sun Pharma at Rs 417.75 up by 1.32%, HDFC at Rs 1974.30 up by 1.42%, Tata Motors at Rs 171 up by 1.30% and Vedanta at Rs 198.30 up by 1.20% at around 09:30 hours.
Whereas losers include Coal India at Rs 240.95 low by 0.60% and NTPC at Rs 147.35 low by 0.44% at around 0931 hours.
According to Reuters, Asia stocks inched higher on Friday after Wall Street ended volatile trade in the green, adding to the massive gains of the previous session although lingering investor jitters helped support safe-haven currencies such as the yen.
MSCI`s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent. It has dropped by almost 4 percent so far in December.
Whether Indian markets follow the trend of global peers today will be keenly watched. For now many investors would be preparing themselves for placing thier bets on exchanges. Equities are one of the bestest form of investment. Although investment in stocks come with certain risks, yet it is seen to give massive returns in long term.
If you are planning to make any buying or selling in stocks during today's trading session, then here's some analysts call which can help you view your investment better.
Ashok Leyland: Analysts at Stewart Mackertich initiated coverage on Ashok Leyland (AL) with ‘Accumulate’ rating. They said, " We value Ashok Leyland on a SOTP basis after putting 50% weightage on both the probable scenarios [with Scrappage Policy & without Scrappage Policy] and the Target Price for one-year horizon is INR113 per share where the value of the
standalone earnings that involves LCV business is INR102.4 per share and value of Leyland Finance is INR10.3 per share."
In Stewart's view, "However, due to implementation of BS VI emission standard on CV prices are likely to move up by around 8-10% and as a result pre-buy is likely to set in FY20 to avoid higher prices. So, a volume de-growth in FY21 is highly expected which is likely to create a drag on its operating performance. But the implementation of scrappage policy is likely
to create additional demand of ~300,000 CVs from FY21 onwards and it is expected to provide traction to some extent to the falling volume from FY21 onwards."
On the other hand, Emkay analysts on Ashok Leyland downgraded their rating to Hold from Buy; Cut TP to Rs 113 from Rs 152. Accordint to them, channel check indicate a reversal in MHCV sales cycle driven by surplus capacity, increasing cost of ownership, selective financing by NBFCs and high base. Further, product mix turned adverse after implementation of new axle-load norms. Additionally, competitive intensity increased due to subdued volumes and aggressive marketing by Tata Motors
According to Bloomberg Quint Radar, following are the investment calls for today.
Emkay on Two-Wheelers
Subdued festive season behind; 2W volumes to recover gradually
Volume growth seen at 11%/5% for FY20/FY21
Eicher Motors: Upgrade to Buy from Accumulate; Hike TP to Rs 27700 from Rs 25700
Hero Moto: Downgrade to Hold from Buy; Cut TP to Rs 3350 from Rs 3560
TVS: Maintain Accumulate; Hike TP to Rs 595 from Rs 590
Bajaj Auto: Maintain Accumulate; Hike TP to Rs 2910 from Rs 2870
HSBC on Tata Motors
Maintain Hold; Cut TP to Rs 200 from Rs 210
JLR’s weakness looks set to bottom out in 2019; absolute valuations appear undemanding
Upside triggers are missing with multiple worries over long-term business outlook
Cash flows to remain stretched for the foreseeable future
Edelweiss on Hero Moto
Maintain Hold with TP of Rs 3,162
Mgmt. says availability of liquidity is not concerning for 2Ws, but channel inventory is high
Mgmt. to focus on features over pricing as a sustainable business strategy
Stock re-rating likely to be driven by success of recent as well as upcoming launches
Nomura on Banks
PSU banks require Rs 1 trillion of capital vs Rs 83,000 crore of government plans.
Planned capital infusion should broadly be enough to cover capital needs of PSU banks.
Latest capital infusion of Rs 28,000 crore to address 50% capital needs of PCA banks.
Continue to prefer corporate private banks followed by SBI.
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