Stocks On Broker's Radar: The market was trading in a bullish trend today. After a continuous bullish move last week, the market witnessed bullish momentum on the first day of the trading week. Buying was also seen in capital goods, realty and government banks in the market today. However, pressure was also seen in IT and auto shares. But oil and gas shares were seen running the most. The Nifty Energy Index has strengthened by about 2 percent. After the positive report by CLSA on gas companies, investors' confidence in these stocks was seen increasing. Along with this, Nuwama has given different ratings on the stocks of different companies in its report on AMC companies, while Citi has given a buy opinion on ICICI Bank.
CLSA said in its report on gas companies that Petronet has proposed to change the gas transmission tariff rules. There is a possibility of change in the gas transmission tariff rules by June 2025. They say that the new rules can reduce the operating expenses of IGL and MGL. The way for higher tariff will also open for GSPL and GAIL. On the other hand, the cost of companies using gas will increase.
On AMC companies, Nuwama said that the equity AUM of AMCs is likely to decline after the correction in the equity index. HDFCAMC and UTIAM have shown improvement in performance in the last one year. NAM's performance has seen a slight decline in the last one year. NAM has reduced its reliance on its flagship smallcap scheme. Net inflow and MTM estimates have been reduced for FY26/27.
Nuwama said that it has given a buy recommendation on HDFC AMC. Its target has been set at Rs 4610. The brokerage has given a hold rating on CAMS. Its target has been set at Rs 3970. On the other hand, Nuwama has given a buy recommendation on Nippon Life and has set a target of Rs 680.
Citi has given a buy opinion on ICICI Bank stock. Its target has been set at Rs 1600 per share. The brokerage says that NIM is expected to improve in Q4. He said that 50 bps rate cut is likely to have a 20-25 bps impact on FY26 NIM. Its unsecured loan stress is stabilizing. Credit cost improvement is possible due to recovery in corporate loans. Credit cost may gradually become normal after FY26. Gradual improvement is expected in the unsecured loan segment. According to the brokerage, there is no challenge in deposit mobilization. Investment in franchise continues along with promotion and marketing.
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