CLSA, JPMorgan, Citi, Morgan Stanley views on Bharti Airtel, Hindalco, NMDC & Nalco

Indian market closed in the green for the third consecutive day in a row on Monday but could see some resistance on Tuesday amid weak global cues.

The Nifty50 closed 50 points higher at 17,945 while the S&P BSE Sensex rose 76 points to 60,135. Both benchmark indices witnessed profit booking in the second half of the trading session on Monday.

We have collated views from Zee Business TV Research Team on what global brokerages recommend on Tuesday:
 

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CLSA & Macquarie on Bharti Airtel

CLSA maintains a buy rating on Bharti Airtel with a target price of Rs 810. Cashback offer on 150 smartphones is likely to be ARPU accretive.
 
The investment bank is of the view that a cashback offer will boost 4G subscriber additions and reduce churn. Timing is positive ahead of Jio phone's next launch in the month of November.

Another brokerage firm Macquarie maintains an outperform rating with a target price of Rs 851.02.

JP Morgan on Base Metals: Vedanta, Hindalco, Nalco, Hindustan Zinc

JP Morgan raised Vedanta’s rating to overweight from neutral and raised its target price from Rs 295 earlier to Rs 400 that implies a 34 percent increase from the last closing price.

JP Morgan maintained an overweight rating on Hindalco but raised its 12-month target to Rs 605 from Rs 540 earlier.

JP Morgan raised Nalco rating to Neutral from underweight earlier, and raised its target to Rs 104, from Rs 46 earlier.  

JP Morgan maintains underweight on Hindustan Zinc. The global investment bank slashed its 12-month target price to Rs 265, from Rs 277 earlier.
 
In the base metals space, aluminium remains best placed that will drive large EPS upgrades across aluminium stocks, said the JPMorgan note.

CITI: NMDC (CMP Rs 154)

Citigroup upgraded the stock to buy with a target price of Rs 190. The upgrade is on the back of valuation support, and likely limited downside to ore prices.
 
The news flow around domestic steel price hikes, NMDC’s steel plant divestment & dividend yield (est 5%) are key to watch out for, said the note.

The stock trades at 3.5x 1-yr fwd EV/EBITDA on consensus.

Citi believes that most of the pain is behind as domestic steel prices are now on rise, global iron ore prices are close to the bottom, & the full impact of higher royalty (renewal premium) should start reflecting from 2Q

Morgan Stanley on Banks: ICICI Bank, HDFC Bank, Axis Bank

Morgan Stanley prefers ICICI Bank, HDFC Bank, and Axis Bank that remains selective in the midcap banking space.

It prefers AU Small Finance Bank, IndusInd Bank on a relative basis. The earnings recovery will be gradual for the midcap banks.

Valuation appears attractive, and large banks will do well as core earnings growth accelerate in H2

CLSA on Logistics: IRB Infrastructure

Roads are doing well and that is good news for IRB Infrastructure. India is emerging as an export destination.

The container growth stood at 14 percent on a YoY basis vs overall port traffic up 6 percent YoY. H1 saw a pickup across the transport value chain for ports, toll roads or rail.

A rise of fuel prices may disrupt the economics of many businesses. CLSA is of the view that Adani Ports became the first casualty of sky-high commodity prices.

Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.