Modi Effect – Brokerage’s Stock recommendations for Investment

Barclays

• Corporates with improving asset utilisation (Tata Steel, Hindalco);
• Corporates with reducing balance sheet leverage (Tata Steel, Hindalco, IRB Infra);
• unleveraged corporates investing in new infrastructure opportunities (Adani Ports, Coal India, L&T); and
• companies benefiting from a lower subsidy regime (ONGC, BPCL),

CLSA

• Its preferred plays include ICICI Bank, SBI, Ultratech, L&T and Maruti.
• Among the midcaps, it expects IndusInd, PFC, Ramco Cement, Jubilant Foodworks, JSW energy, Prestige Estates and Motherson Sumi
• The brokerage has replace Cairn India with ONGC in model portfolio. It has removed United Spirits and added to Ultratech and SesaSterlite to the list.

Goldman Sachs

• It is bullish on reforms-based stocks such as ONGC, Coal India, SBI, L&T, Power Grid Corporation, Adani Ports & SEZ, Bank of Baroda, JSW Steel and Crompton Greaves

CitiGroup

• It prefers Axis Bank, Hindalco, ICICI Bank, Lupin, Maruti, ONGC, SBI, Tata Motors and Wipro among the largecaps.
• In the midcap space, it likes Aurobindo Pharma, BPCL, DB Corp, Federal Bank, Gujarat Pipavav, IDFC, Info-edge, LIC Housing, Mindtree and Prestige Estates.

JP Morgan

• It is bullish on Zee, Tata Motors, ITC, GSK Cons, RIL, ICICI, DRL, HDFC Bank, Infosys, Tech Mahindra, Grasim, Tata Steel, SesaSterlite, Power Grid and Tata Power.