Should you buy, sell or hold Tech Mahindra, Infosys, IndusInd Bank, ICICI Lombard and other stocks in focus today?
Stocks to buy, hold or sell today: Heres a look at what brokerages make of some of the key stocks in focus. Tech Mahindra, Infosys, IndusInd Bank, HDFC Bank, ICICI Bank, Axis Bank and ICICI Lombard are on their radar.
Stocks to buy, hold or sell today: From IT to banks, global brokerages were mostly upbeat on the stocks such as Tech Mahindra, Infosys, IndusInd Bank, ICICI Lombard along with other private lenders under their radar on Monday.
Most brokerages upbeat on Tech Mahindra and IndusInd Bank as the former appoints new MD & CEO, while the latter gets RBI approval for the extension of the current MD & CEO. Similarly, Macquarie was bullish on banking heavyweights mainly on the positive business outlook, going forward.
Check out the full list of brokerage calls on Tech Mahindra, Infosys, IndusInd Bank, HDFC Bank, ICICI Bank, Axis Bank, and ICICI Lombard:
Tech Mahindra
Most global brokerages are upbeat on Tech Mahindra after the IT company announced former Infosys president Mohit Joshi as a successor of MD & CEO, CP Gurnani on Saturday.
CLSA has upgraded to ‘accumulate’ from a ‘reduce’ rating, while Nomura maintained a ‘buy’ target on the IT company shares. Whereas JP Morgan and CITI each have a ‘neutral’ rating on the counter.
Brokerages | Rating | Price Target |
CLSA | Accumulate | Rs 1,200 |
Citi | Neutral | Rs 1,120 |
JP Morgan | Neutral | Rs 1,100 |
Nomura | Buy | Rs 1,260 |
With the appointment of Mohit, the real test of performance will start from the next calendar year once the new MD and CEO assumes office, CITI said in its note.
Infosys
Global brokerages are divided on Infosys after the company’s president Mohit Joshi resigns to join rival Tech Mahindra as MD & CEO. JP Morgan maintains a ‘neutral’ rating, while CLSA has a ‘buy’ stance on the large-cap IT stock.
Brokerages | Rating | Price Target |
JP Morgan | Neutral | Rs 1,700 |
CLSA | Buy | Rs 1,800 |
According to CLSA, Infosys will need to find a quick replacement to ensure minimal business disruptions, especially in ongoing deal negotiations
IndusInd Bank
Most brokerages are bullish on IndusInd Bank as the Reserve Bank of India (RBI) approves the reappointment of Sumant Kathpalia as MD & CEO for the next two years. Macquarie maintains an ‘outperform’ rating, while Morgan Stanley retains an ‘overweight’ stance on the stock.
Brokerages | Rating | Price Target |
Macquarie | Outperform | Rs 1,510 |
Morgan Stanley | Overweight | Rs 1,525 |
JP Morgan | Neutral | Rs 1,060 |
Jefferies | Buy | Rs 1,550 |
CITI | Buy | Rs 1,420 |
Similarly, Jefferies has a ‘buy’ rating on IndusInd Bank mainly due to attractive valuations and IndusInd Bank is among the top buy for the brokerage.
On the contrary, JP Morgan downgraded IndusInd Bank to ‘neutral’ from ‘overweight’ as RBI extended current CEO, Sumant Kathpalia's tenure for 2 years instead of 3 years as proposed.
Macquarie on private banks
According to the brokerage, low credit costs will continue to drive multiyear high return on assets (ROAs). The brokerage has an 'outperform' rating on HDFC Bank and ICICI Bank each, while it maintains a 'neutral' stance on Axis Bank.
Bank Stocks | Rating | Price Target |
HDFC Bank | Outperform | Rs 2,110 |
ICICI Bank | Outperform | Rs 1,145 |
Axis Bank | Neutral | Rs 940 |
ICICI Lombard
Morgan Stanley maintains an ‘overweight’ stance on ICICI Lombard as the parent company ICICI Bank receives a 1-year extension to bring down the stake to 30 per cent from the current 48.02 per cent in the insurance arm.
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