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Reports India

Indian stock market and companies daily report (May 05, 2014, Monday)

May 5, 2014, Monday, 04:34 GMT | 23:34 EST | 08:04 IST | 10:34 SGT
Contributed by Angel Broking


The Indian Markets are expected to open flat today tracking flat opening in SGX Nifty and most of the Asian markets.

After showing a lack of direction throughout much of the two previous sessions, US stocks continued to experience choppy trading on Friday. The lacklustre performance came as traders weighed upbeat jobs data against lingering concerns about Ukraine. Before the start of trading, the Labor Department released a report showing stronger than expected job growth. With the stronger than expected job growth, the unemployment rate dropped to 6.3% in April from 6.7% in March. Economists had expected the unemployment rate to edge down to 6.6%. Meanwhile, European markets closed in red on Friday amid concerns about Ukraine.

Indian shares fell for fifth consecutive day as metal stocks came under selling pressure after a government report showed sharp fall in export orders, adding to concerns about the economy.


Markets Today

The trend deciding level for the day is 22,455 / 6,707 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,524 - 22,644 / 6,725 - 6,755 levels. However, if NIFTY trades below 22,455 / 6,707 levels for the first half-an-hour of trade then it may correct 22,335 - 22,267 / 6,677 - 6,659 levels.


Sun Pharma announces manufacturing consolidation:

Sun Pharmaceutical Industries announced that, as a part of its manufacturing consolidation in the USA, it has notified the Workforce Development Agency for the State of Michigan regarding its decision to cease manufacturing operations and close the Detroit (Caraco Pharmaceutical Laboratories, Ltd.) facility located at Elijah McCoy Detroit, Ml, USA. The Company has provided the requisite advance written notice of the facility closure to the employee union and all affected employees. The Company has ensured that the impacted employees get compensated with more than their regular entitlement under the severance package. They will also receive other support services including out-placement assistance. The rest of the employees are continuing through mutually consented arrangements. The Company has undertaken necessary measures to ensure business continuity of the products being manufactured at this facility. The manufacturing of these products is being transferred to other units and all necessary steps have been taken to avoid market shortage. Sun Pharmaceuticals expects a negligible impact of this development on its FY2015 consolidated revenues. We remain neutral on the stock.


Result Preview

Canara Bank - (CMP: '286 / TP: '329 - / Upside: 15.2% )

Canara Bank is scheduled to announce its 4QFY2014 results today. We expect the bank to report NII growth of 11.2% yoy at '2,325cr. Non-interest income is expected to de-grow by 5.2% yoy to '954cr. Operating expenses are expected to grow by 13.4% yoy to '1,587cr, which would result largely flat pre provision operating profit to '1,691cr. Provision expenses are expected to increase 35.5% yoy to '1,019cr. Overall we expect the bank to report earnings de-growth of 27.2% yoy to '528cr. At CMP, the stock trades at valuations of 0.4x FY2016E ABV. We maintain our Buy recommendation on the stock.


Economic and Political News

- FinMin allays fears of US stimulus withdrawal impact on FDI

- Economic growth slated to improve but gradually: Deloitte

- Panel meet on coal supply to end-use plants now on May 12


Corporate News

- EESL in talks for $1 00mn ADB fund to boost energy conservation

- Kazakhstan offers oil field to ONGC Videsh

- CIL modifies e-auction clauses