New York: 22:03 || London: 02:03 || Mumbai: 05:33 || Singapore: 08:03

Reports India

Indian stock market and companies daily report (May 08, 2014, Thursday)

May 8, 2014, Thursday, 05:26 GMT | 01:26 EST | 08:56 IST | 11:26 SGT
Contributed by Angel Broking

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

After moving sharply lower over the course of the previous session, US stocks posted mixed performance on Wednesday, with Nasdaq down 0.3% to 4,068 while Dow jumping 0.7% to 16,519 and the S&P 500 climbing 0.6% to 1,878. Weakness among tech stocks keept Nasdaq in negative territory, with electronic storage and internet stocks turning in some of the worst performances. Meanwhile, the European stocks rallied from early losses to finish with modest gains on Wednesday, bolstered by hopes of a diplomatic solution to the Ukraine crisis. Russian President Vladimir Putin said Russian troops had pulled back from the Ukrainian border, and he urged separatists in eastern Ukraine to postpone a vote planned for this weekend.

Indian shares fell sharply on Wednesday, reversing two days of gains, weighed down by weak global cues and increasing caution ahead of the election results due next week.

Markets Today

The trend deciding level for the day is 22,381 / 6,671 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,476 - 22,628 / 6,700 - 6,747 levels. However, if NIFTY trades below 22,381 / 6,671 levels for the first half-an-hour of trade then it may correct 22,229 - 22,134 / 6,624 - 6,596 levels.

Result Review

Lupin (CMP: Rs.990/ TP: Rs.1,122/ Upside:13.3%)

Lupin, posted numbers ahead of our expectations, on the OPM and net profit front, while the sales came in lower than expected. During the quarter, company posted a revenue growth of 20.0% to end the period at Rs.3051.5cr V/s Rs.3598cr expected, mainly driven by exports. The growth in the exports, was lead by US (its key market), which grew by 28% yoy, while the ROW, which grew by 38% yoy respectively. Other market, like Europe and Japan grew by 20% yoy and 17% yoy respectively. On the negative side, the Indian market posted a mere growth of 2% yoy. Also, on the OPM front, it posted OPM's of 26.6% V/s 24.0% in 4QFY2013 and expectation of 24.0%), an expansion of 265bps. The margin expansion is mainly on back of gross margin expansion, which came in at 67.9% V/s 64.4% in 4QFY2013.Expansion in the OPM, along with robust growth in the other income, which grew by 42.6% yoy aided its net profit, came in at Rs.550cr, V/s expected Rs.500cr, a yoy growth of 35.5%.We maintain an accumulate on the stock with a target priced of Rs.1,122.

Economic and Political News

- Trai extends date for receiving comments on internet speed

- DGCA sets new aircraft tracking rules after MH370 disappearance

- Indian pharma to grow at 20% CAGR: India Ratings

- NHAI readies 6,000 kms for award of contracts

- RBI asks banks not to levy penalty on pre-payment of loans

Corporate News

- HCL Tech wins $400 million contract from Norwegian bank DNB

- ONGC to spend US$1.1bn on drilling to revive Mumbai High fields

- Oil India buys 50% stake in Russian oil block for US$85 million

- RINL starts talks with banks to raise up to Rs.600cr debt

- IRB Infrastructure bags Rs.2,300cr road project in Haryana