Stocks downgraded by FIIs

1.       Lupin

  Nomura downgrades Lupin due to slower US sales growth and high R&D spend. Target price reduced from earlier  Rs. 1738 to Rs. 1661

2.      Bharat forge  

Bank of America Merrill Lynch (BoAML) downgraded the stock to underperform from buy. Downgrade was done on behalf of decline in heavy truck orders in North America. Cuts its target to Rs. 1130.

3.       2-wheeler Autos  

CLSA cuts the target of all three major 2-wheeler auto stocks CLSA expects the 2W industry to grow just 4 percent in FY16. Exports demand has also softened, which is another negative, it added.

CLSA said  2W industry growth has slowed sharply from 16 percent in April-September period of FY15 to just 1 percent in October-March period of FY15. Share of scooters in 2W industry volume continued to climb and hit 30 percent in 2HFY15 from 24 percent in FY14. Even within motorcycles, demand is moving towards the premium 125cc+ bike segment, but mainly to the cruising bike sub-segment of premium bikes. This demand shift is negative for Hero as it is a distant second in scooters, while Bajaj is absent. Within motorcycles, the shift to premium bikes hurts Hero and doesn’t help Bajaj as it is absent in the cruising sub-segment of premium bikes, it added.

Target price of HeroMoto corp reduced to 2250, Bajaj Auto price target reduced to 1950 and that of TVS Motors reduced to 195.