Brokerage reduces top corporate target rates
Brokerage reduces top:
The Brokerage rates have dropped by as much as 30% in the last 6 weeks to reflect the decline in profitability following the downturn caused by the continuous lockdown.
Out of the 354 stocks followed by at least 5 analysts, 309 Bloomberg’s information on BSE-500 components showed a fall in the target price of consensus since 1 March.
The most important fall in the target price seen by banks, automobiles, hotel owners, airlines, retail, and non-bank financial firms. Although the banking sector is at risk of an NPA rise due to potential job losses as a result of the closure, auto companies suffer the impact of poor sales.
Travel limits have weakened airlines and hotel companies’ near-term earnings prospects. Prism Johnson, IndusInd Bank, Lemon Tree Hotels, Bandhan Bank, Indian Hotels, KPIT Technologies Tata Motor, SpiceJet, Future Lifestyle and Bajaj Finance, M&M Financial Services saw a 22-30 percent price cut target.
“We won’t know the scale of the effects until we see the lockdown done. Despite work losses, people should concentrate on saving more, not consuming, and paying for EMIs, “said Abhimanyu Sofat, IIFL Research Director. “These businesses do not provide a V-shaped recovery,” Sofat said.
Stock Market April 21st Update Sensex and Nifty
On the second day of the week, the stock market trading with the bearish trend. The Sensex traded with a loss of 937.73 points reached 30,710.27 level with 2.96% down. Whereas, Nifty traded with a loss of 263.40 points reached 8,998.45 level with 2.84% down.
In the border market, the S&P BSE Midcap traded with a loss of 306.61 points reached 11,492.22 with 2.60% down. Whereas, S&P BSE SmallCap traded with a loss of 276.87 points reached 10,610.04 with 2.54% down. At the same time, Nifty bank traded with a loss of 918.55 points reached 19,604.10 with 4.48% down.
Top Gaining stocks: Dr.Reddy’s Laboratories, Sun Pharmaceutical Industries, Bharti Infratel, Cipla, and Asian Paints Ltd.
Top Losing stocks: Hindalco Industries, Indusind Bank, Tata Steel, Maruti Suzuki India, and Vedanta Ltd.