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Buy, Sell, Hold: 4 stocks and 1 sector are on analysts’ radar today

Tata Motors and BHEL, among others, are being tracked by analysts today.

Tata Motors

Brokerage: CLSA | Rating: Sell | Target: Rs 405

The brokerage house said that global luxury auto demand is softening, while it sees JLR gaining share. Further, it added, that it liked JLR’s strong pipeline, but remained concerned on its margin and India business. CLSA also sees further consensus downgrades ahead.

Petronet LNG

Brokerage: Citi | Rating: Buy | Target: Rs 541

The global financial services firm said that a possible purchase of 25 percent stake in Mundra’s LNG terminal to be a positive use of cash. A stake in Mundra LNG terminal may provide the company with a new avenue of growth, it added.

Further, it remains relatively immune to India’s broader LNG demand outlook. With GAIL’s Kochi-Mangalore pipeline under construction, it may see better utilisations from FY20. The company’s solid volume visibility & undemanding valuation make it a preferred pick, it added.

Mahindra & Mahindra

Brokerage: Credit Suisse | Rating: Overweight | Target: Rs 1,530

The research firm believes that farm loan waivers could further support tractor demand. It added that the states which waived loans so far account for more than 30 percent of total tractor volumes. This contribution, it says, will increase to 65 percent of total volumes if other states waive farm loans as well. It cited the instance of 2008 when waivers had improved tractor business CAGR to 21 percent.


Brokerage: JPMorgan | Rating: Underweight | Target: Rs 120

JPMorgan said that staff costs were likely to increase 20 percent in FY18 after wage settlement exercise. Further, it added, that diversification efforts have not produced very significant results. The company will have to win a very large share to sustain 8-9 percent growth in FY19. It does not see replacement of thermal plants as being a big catalyst.


Brokerage: Jefferies

The research firm said that steel remains a tolling business and input costs were a key driver of steel prices. It feels that iron ore prices will remain under pressure on weak fundamentals. Chinese stimulus appears to be fading & re-stocking cycle has ended, the brokerage house said. Meanwhile, domestic steel prices should fall more, while prices are still at 6-8 percent premium to anti-dumping duty.

Among players in the sector, it sees earnings before interest, taxes, depreciation and amortisation (EBITDA) growth for major players to be modest. At SAIL, free-cash-flow could lag pushing net debt higher, while on JSW Steel, the firm feels that consolidated margin expectations are too optimistic. A sharper than expected fall in coking coal costs is a key risk.


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A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

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Reliance Infra arm moves Delhi HC over arbitration award against DMRC; stock up 5%

Subsidiary Delhi Airport Metro Express has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation.
Reliance Infrastructure share price rallied 5 percent intraday Tuesday after the company's subsidiary DAMEPL has moved the Delhi High Court over the execution of Arbitration award against DMRC.

"...subsidiary Delhi Airport Metro Express Pvt. Ltd. (DAMEPL) has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation (DMRC)," the company said in its filing.

The arbitral award was recently upheld by a single judge bench of the Delhi High Court.

In its petition filed under section 36 of the Arbitration and Conciliation Act in the division bench headed by Chief Justice of Delhi HC, DAMEPL has sought an order for the execution of the award dated May 11, 2017 passed by the Arbitral Tribunal and direct DMRC to pay a around Rs 5,200 crore, the company said.