Thursday’s top brokerage calls: RBI policy, steel stocks and more

Morgan Stanley on RBI Policy: Managing liquidity and commitment to buy G-Sec indicates a more dovish stance, said the brokerage. It feels that as growth conditions normalise, RBI should take steps to normalise the policy.

Nomura on RBI Policy: The brokerage feels RBI’s policy decision is less dovish than what meets the eye. It added that managing the yield curve may be challenging if long-term inflation expectations rise.

Credit Suisse on Steel: Indian steel pricing rose $50/t this week in the trader’s market, said the brokerage, adding that the prices are likely to be elevated on-demand recovery, shortage and cost-push. It likes Tata Steel and JSPL in the space.

Citi on Steel: The brokerage raises FY22 EBITDA estimate by 12-20 percent for JSW Steel, JSPL & SAIL.

Macquarie on IT Sector: The brokerage sees strong demand tailwinds for Indian IT aided by cloud and digital transformation. Top large-cap picks in the IT space for Macquarie are Infosys and HCL Tech.

CLSA on IT Sector: As per the brokerage, the strength of deal activity is in line with recent commentaries by Indian IT companies.

CLSA on Bharti Airtel: The brokerage maintains a ‘buy’ call on the stock with a target at Rs 730 per share.