Brokers' Picks: BPCL, Redington

Morgan Stanley Overweight on BPCL

Target: NA

Current Price: Rs 367

> Overall the oil subsidy is set to decline with diesel prices being raised by Rs 0.5/litre every month

> With no elections till December, the path to de-control should continue

> Subsidy may fall from Rs 1,600 b in FY13 to under Rs 1,000 b this year

> Faster-than-expected subsidy reduction to lead to lower interest costs

Nomura Retains Buy on Redington

Target: Rs 108

Current Price: Rs 78.10

> Sales uptick from a full-year impact of Apple iPhone along with growth in the rest of the Apple portfolio will contribute to 52% of the incremental sales in the domestic business in FY14F

> Apart from growth in IT biz in the Middle East & Africa, it expects ramp-up of Samsung to be key growth driver