India's cement and information technology stocks will be in focus as brokerages have taken a fresh view ahead of the second quarter earnings.
Motilal Oswal Financial Services Ltd. said that India's medium-term growth narrative stands out in an extremely volatile global landscape. CLSA, in its India strategy, said that investor sentiment has fallen to a neutral zone from an extremely bullish zone a week ago.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Monday.
Motilal Oswal On India Strategy
India's medium-term growth narrative stands out in an extremely volatile global landscape.
Waters may get a bit turbulent for Indian equities in the short term.
Monetary stimulus unleashed by China has sparked a wave of tactical FII outflows from India.
Corporate earnings are moderating due to pressures from commodities and fading tailwinds from BFSI asset quality improvements.
Earnings revisions have turned adverse with downgrades of ~6% in the Nifty EPS since July 2024.
Outcomes of the recent state elections, while not a needle mover, may keep the markets on edge.
Modest earnings growth is likely to be driven once again by BFSI.
Citi On India Cement Sector
Industry sources suggest cement demand was flat in the second quarter.
Expects volume growth in the range of -8% to +5%.
Expects Shree Cement Ltd., Ramco Cements Ltd., Nuvoco Vistas Corp., and JK Cement Ltd. to report a decline in volumes.
Expects UltraTech Cement Ltd., Ambuja Cements Ltd., and Dalmia Bharat Ltd. to report 5% year-on-year volume growth.
Expects 1.5 to 3.5% sequential decline in cement realisations in the second quarter of financial year 2025.
Citi On Indian Metals And Mining Sector
The brokerage maintains 'sell' across the steel coverage universe.
Expects sequential Ebitda/tonne decline across coverage companies. To range from Rs 1,000-2,300/tonne.
Expects year-on-year volume decline for JSW Steel Ltd., Jindal Steel and Power Ltd., and Steel Authority of India Ltd.
Expects Tata Steel to report volume growth of 6%.
Expects realisations to decline Rs 2,500-3,500/tonne sequentially in second quarter.
Weakness in realisations should be partly offset by costs.
CLSA On India Strategy
Investor sentiment has fallen to a neutral zone from an extremely bullish zone a week ago.
Reading was 54% bullish from 97% bullish last week.
Nifty was down 4.5% during the week.
All sectors except metals were in the red zone.
Auto and realty were worst hit.
In the CLSA India focus portfolio, Infosys and Hindalco were top performers.
In CLSA India focus portfolio, Axis Bank Ltd. and Reliance were main decliners.
JPMorgan On India IT
Upgraded LTIMindtree Ltd. to 'outperform' from 'neutral' with a target price of Rs 6,900 per share from Rs 5,400 apiece earlier, implying an upside of 13%.
Upgraded Mphasis Ltd. to 'outperform' from 'neutral' with a target price of Rs 3,400 per share from Rs 2,700 apiece earlier, implying an upside of 18.8%.
LTIM and Mphasis to benefit from BFSI recovery.
LTIM has 35% exposure to BFSI.
Mphasis has 59% exposure to BFSI.
BFSI has seen positive commentary over last three months.
There has been a revival in capital markets and investment banking revenues in the US.
Acceleration is driven by tech spend pickup.
US bank earnings expected to improve in the first half of fiscal 2025, could drive tech spends up.
Macquarie On Titan
Macquarie maintained 'outperform' with a target price of Rs 4,100 per share, an upside potential of 11% from the previous close.
Pre-second quarter sales beat estimates, led by 26% growth in jewellery and 20% in watches.
Second-quarter standalone Ebitda growth is expected at 9%.
Builds 25% sales growth, 180 bps jewellery margin decline on weaker product mix.
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