Thursday, March 4

Tag: Morgan Stanley

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Morgan Stanley upgrades two PSU banks, sees limited upside in others

NEW DELHI: Morgan Stanley has upgraded two PSU banks and raised prices targets for others. The foreign brokerage sees balance sheets of state-owned banks improving, capping the downside risk for them. Valuations of PSU banks are cheap at 0.4-0.5 times expected FY22 book value. However, the upside for most of them is limited as not all of them will benefit equally from the corporate recovery cycle. "We raise earnings/price targets to factor in higher PPOP and lower credit costs and lower dilution. Our preferred (PSU) bank is . Upgrade Bank of Baroda and given cheap valuations. We remain underweight on Canara Bank and Bank of India given low profitability,” said Rahul Gupta, equity analyst at Morgan Stanley. Morgan Stanley has a target of Rs 600 on SBI, which means a 52 per cent upside f...
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Marshall Wace, Morgan Stanley, ICICI Pru, others invest in BoB’s Rs 4,500-cr QIP

Mumbai: Bulge-bracket local and overseas investors, including ICICI Prudential Mutual Fund, Aditya Birla Mutual Fund, Morgan Stanley, and London-based Marshall Wace, have together invested Rs 4,500 crore into through a qualified institutional placement (QIP), three people familiar with the deal told ET. This is the biggest QIP by a state-owned lender in FY21. Among the other backers of the QIP are Hong Kong-based asset manager Sigantii, Prudential Plc's Eastspring Investments, San Francisco-based hedge fund Think Investments and Nippon Mutual Fund. Besides hedge funds and asset managers, French banks BNP Paribas and Societe Generale also bought shares on their proprietary trading books. Bank of Baroda (BoB) has finalised allotment to investors after the QIP closed Tuesday. The infusion...
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Will the 2021 earnings bonanza really happen?

By Brian Chappatta Fourth-quarter earnings are just about over, which means investors can officially turn their attention to 2021, a year that has long been synonymous with a return to pre-pandemic life. Investors widely expect the global economy will come roaring back thanks to vaccinations and pent-up demand. Analysts also have great expectations for profit growth among U.S. businesses as the country makes its way toward defeating the coronavirus. According to Bloomberg Intelligence, analysts expect a whopping 23.2% increase in earnings per share among S&P 500 companies, up from 22.3% at the start of the year. The upward revisions span the first three quarters of this year, a potentially better sign than counting on an explosive rebound several months from now. Average first-half ...
Markets

IndusInd, Federal, Bandhan may be key gainers of government move

Access to deposits can be a source of advantage, especially for banks that rely on wholesale depositsSynopsisNifty Private Bank Index gained nearly 4% on Wednesday and 0.5% on Thursday. ET takes a look at how brokerages are perceiving this.Mumbai: Brokerages expect large private banks to be the main beneficiaries of the government’s decision to open its business to all private banks. While large lenders such as IndusInd Bank are expected to benefit the most, some analysts believe that regional banks such as Federal Bank and Bandhan Bank will also have an advantage. This move by the government has put private banks in the spotlight. Nifty Private Bank Index gained nearly 4% onBYET Bureau 3 mins read, Last Updated: Feb 26, 2021, 06:44 AM ISTGIFT ARTICLEFONT SIZEAbcSmallAbcMediumAbcLargeSA...
Markets

Reign of high oil prices is here to stay, say analysts

India is likely to go ahead with an oil tax cut to soften retail prices, said Bank of America Securities.SynopsisInternational crude oil prices have surged to their highest levels in 13 months recently, led by a strong demand outlook due to recovery in global economies as well as supply disruptions in the Middle East. Mumbai: Leading brokerages such as Morgan Stanley and Goldman Sachs expect crude oil prices to touch $70-75 a barrel this year driven by lower expected inventories and higher marginal costs. These brokerages believe that the oil market has been undersupplied this year and oil prices will see a sharp uptick sooner or later.Goldman Sachs estimates Brent crude oil prices will touch $70 a barrel and reach $75 a barrel in the third quarter.“...oilBYET Bureau Feb 24, 2021, 08:17...
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Heranba Industries raises Rs 187.51 crore from 18 anchor investors

MUMBAI: Gujarat-based agrochemical company, Heranba Industries has raised Rs 187.51 crore by allotting 29.91 lakh shares to 18 anchor investors on Monday, a day prior to its issue opening for public bidding. The shares were issued at Rs 627 apiece, which is the upper end of the price band. Government Pension Fund Global has been allotted a major chunk of 18.67% of the anchor allotment while HDFC Mutual Fund subscribed about 12%. Other anchor investors include Society Générale, Morgan Stanley, Jupiter India Fund, Max Life Insurance, IIFL Special Opportunity Fund, Mutual Fund, Dovetail India Fund among others. Heranba Industries IPO will open on 23 February for subscription and the company has fixed a price band of Rs 626-627 per share. The issue closes on February 25. One of the leading...
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Australia shares track Asian peers lower, commodity stocks weigh

Australian shares had their worst session in three weeks on Friday, tracking losses in Asian peers, as a worse-than-expected rise in weekly U.S. jobless claims tempered hopes for a quick economic recovery. The S&P/ASX 200 index fell 1.34 per cent to 6,793.8 points, as weaker oil and gold prices weighed on commodity-linked stocks. The benchmark was down 0.19 per cent for the week. Asian stocks pulled back from all-time peaks on the back of underwhelming U.S. data and as yields on longer-dated bonds rose. "The momentum of the global recovery buy-everything trade looks to be flagging in the near term, nudged along by worse than expected U.S. jobless claims data overnight," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA. Energy stocks saw their worst session in 4-1/2 ...
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Morgan Stanley ups target price on SBI

Mumbai: Morgan Stanley raised its price target on State Bank of India to Rs 600 from Rs 525 citing improvement in retail business and a turnaround in the corporate cycle. The new price target implies a 45 per cent upside in the stock price. On Thursday, shares gained 0.8 per cent to close at Rs 415.20. “SBI has built a strong retail franchise and also sustained its deposit market share. Even on digitisation, the progress has surprised, unlike peer SoE (State Owned Enterprises) banks,” said Morgan Stanley in a note to clients. “As the corporate cycle turns, we expect earnings estimate upgrades and significant re-rating.” The brokerage said SBI reminds it of China Merchants Bank (CMB), which has shown consistent improvement in its retail franchise compared to the country’s other public s...
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Barclays resumes dividend payouts as annual profit halves

LONDON: Barclays' 2020 annual profit fell by half, the bank reported on Thursday, much less than forecast as a strong performance by its investment bank offset provisions against bad loans from the economic fallout of the COVID-19 pandemic. The British bank said it would resume paying dividends of 1 pence per share, as well as returning capital via a 700 million pound ($969.36 million) buyback, after lenders halted payouts last year at the request of the Bank of England. Barclays reported a profit before tax for 2020 of 3.1 billion pounds ($4.29 billion), well above the average estimate of 1.96 billion pounds from analysts' forecasts compiled by the bank. Barclays' profit was bolstered by a stellar year for its investment bank, which in common with U.S. peers reported strong revenues fr...
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India sovereign fund hires Morgan Stanley infrastructure dealmaker Momaya

By Baiju Kalesh India’s sovereign wealth fund National Investment and Infrastructure Fund Ltd. has hired Morgan Stanley executive director Ami Momaya, people familiar with the matter said. Momaya, who was with the U.S. firm’s infrastructure investment management division, will join NIIF as a partner in early May, one of the people said. The executive, a competitive basketball player, started at Morgan Stanley in the back office and worked her way up. NIIF, which is backed by other global sovereign funds such as Temasek Holdings Pte and Abu Dhabi Investment Authority, manages more than $4.4 billion in equity across its three funds, its website shows. NIIF invests in asset classes such as infrastructure, private equity and other diversified sectors in India. A representative for Morgan St...