The Zacks Analyst Blog Highlights: ICICI Bank, HDFC Bank, Tata Motors, Dr. Reddy's Laboratories and Infosys
CHICAGO, May 20, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the ICICI Bank Ltd. (NYSE:IBN-Free Report), HDFC Bank Ltd. (NYSE:HDB-Free Report), Tata Motors Ltd. (NYSE:TTM-Free Report), Dr. Reddy's Laboratories Ltd. (NYSE:RDY-Free Report) and Infosys Ltd. (NYSE:INFY-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
3 Indian Election Stock Picks
The NDA alliance has won a resounding victory in the recently concluded Indian elections, outperforming most exit poll projections. Barring one, none of these surveys had predicted that voters would provide a majority mandate to a single party for the first time in thirty years. The implications of this development for the Indian economy will be far reaching and require detailed analysis.
Markets Surge
By early morning, the Sensex had moved beyond the 25000 mark after trends indicated that the BJP was on track to win a clear majority. The 30-share index ultimately ended lower following profit booking. At around 24,000, it was still a record close.
The NSE Nifty followed suit, crossed the 7,500 mark and touching an intra-day high. The index lost most of its early gains to close at around 7,200. Profit booking was the culprit in this case as well.
Among sectoral indices, the BSE realty index increased the most, gaining 5.97%. Coming in second was the Banking Index, which gained 4.39% while the PSU Index moved up 3.6%.
ADRs Close Mixed
ADRs ended mixed on Friday. Among the gainers was ICICI Bank Ltd. (NYSE:IBN-Free Report) which moved up 10.01% to $51.01 per ADR. Close competitor HDFC Bank Ltd. (NYSE:HDB-Free Report) gained 6.11% to end at $46.18. Tata Motors Ltd. (NYSE:TTM-Free Report) also gained, by 2.7% to close at $40.68.
However, some big names featured among the losers. Dr. Reddy's Laboratories Ltd. (NYSE:RDY-Free Report) shed 0.25% to close at $40.66. Meanwhile, tech major Infosys Ltd. (NYSE:INFY-Free Report) lost 1.04% and 1.19% to close at $53.20.
Modi's Method
The Congress-led UPA regime, which lost the election, was hampered by two major problems. Subsidies ballooned and industry lost its momentum. Consequently, growth floundered, declining below 5% from the pre-crisis level of 8%. The government also faced a disruptive opposition which resisted major reforms, such as the entry of multi-brand retail. Inflation continues to rise, presenting a daunting challenge for the new government.
The success of the BJP, which has managed to garner a clear majority for itself, is being solely attributed to its prime ministerial candidate Narendra Modi. A long-term chief minister of the state of Gujarat, Mr Modi has distinguished himself in several areas.
His rural electrification program is a case in point, which has not only improved the quality of life for many but also significantly reduced the power subsidy. The fact that this has been achieved through close association with private enterprise is equally significant.
The Road Ahead
One of Mr. Modi's frequent slogans has been: "Minimum government, maximum governance." Developments in the national capital indicate that an assertive Prime Minister's Office would be able to increase the pace of decision making, significantly reducing red tape. A renewed emphasis on manufacturing, which has slipped in recent times, also augurs well for the economy.
Below we present three stocks which are poised to benefit from the new government's policies, each of which also has a good Zacks Rank. The first two are the country's largest private banks and the third, its largest automobile manufacturer.
ICICI Bank Ltd.
ICICI Bank Ltd. is one of the major private sector banks in India, with total assets of about INR5,741.26 billion ($92.89 billion) as of Dec 31, 2013. The bank had a network of 3,588 branches and 11,215 ATMs as of the same date. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers. The company's subsidiaries operate in the areas of investment banking, life and non-life insurance, venture capital and asset management.
ICICI Bank Ltd. holds a Zacks Rank #1 (Strong Buy) and has a forward price-to-earnings ratio (P/E) for the current financial year (F1) is 15.84.
HDFC Bank Ltd.
HDFC Bank Ltd. is one of the largest banks in India, with a retail network of 3,336 branches and 11,473 ATMs in 2,022 cities as of Dec 31, 2013. The bank enjoys favorable brand equity among Indian consumers and depositors, which enables it to keep its borrowing costs low. It provides a wide range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.
Currently the company holds a Zacks Rank #3 (Hold) and has a P/E (F1) of 20.62.
Tata Motors Ltd.
Tata Motors is the largest automobile company in India. It is also the fifth largest truck manufacturer and the fourth largest bus manufacturer in the world. It also provides automotive solutions. Commercial and passenger vehicles are also sold in Europe, Africa, the Middle East, South East Asia, South Asia, Russia and South America.
Apart from a Zacks Rank #3 (Hold), Tata Motors has a P/E (F1) of 9.47.
The new government is expected to increase the pace of decision-making and initiate key reforms. This is why these stocks would make good additions to your portfolio in the post-poll scenario.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on IBN - FREE
Get the full Report on HDB - FREE
Get the full Report on TTM - FREE
Get the full Report on RDY - FREE
Get the full Report on INFY - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
Share this article