Morgan Stanley bullish on ICICI Bank, Grasim among 5 stocks

Global brokerage house Morgan Stanley is bullish on top private-sector lenders ICICI Bank and HDFC Bank. In fact, both are its top picks in the space, though its base case is for a fairly weak financial sector in 2020.The research house feels loan growth will be slow and non-performing loans (NPL) formation will be elevated. “Banks and NBFCs will struggle to improve balance sheet and profitability,” it said.It is underweight on Yes Bank, RBL Bank, IDFC First Bank, Federal Bank and state-owned banks (Ex-SBI) and among non-banks, it is underweight on Indiabulls Housing Finance and PNB Housing Finance.Close Morgan Stanley does expect ICICI Bank to return 48 percent (at Rs 775 per share) in next one or two years, as large lenders are at the start of a super-normal profit cycle. related news RSI pullback in SBI suggests buying opportunity No ‘intermediate top’ but traders could go short on Nifty this week: Experts Top buy and sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitesh Thakkar for short term “Macro is tough but RBI/the government is taking steps that support the system and drive up profits for good lenders. EPS (earnings per share) and return on equity are set to improve. ICICI is particularly… Read full this story

Morgan Stanley bullish on ICICI Bank, Grasim among 5 stocks have 307 words, post on www.moneycontrol.com at December 9, 2019. This is cached page on Business Breaking News. If you want remove this page, please contact us.