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Reports India

Indian stock market and companies daily report (May 21, 2014, Wednesday)

May 21, 2014, Wednesday, 06:10 GMT | 01:10 EST | 09:40 IST | 12:10 SGT
Contributed by Angel Broking

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

After moving modestly lower in early trading, US stocks saw some further downside over the course of the trading day on Tuesday. The pullback on the day partly offset the upward move seen over the two previous sessions. The early weakness on Wall Street partly reflected disappointing quarterly results from retailers such as Staples (SPLS), Dick's Sporting Goods (DKS), and Home Depot (HD). Selling pressure intensified in afternoon trading partly due to remarks by Philadelphia Federal Reserve President Charles Plosser who said that Fed may be required to begin raising interest rates sooner rather than later as inflation moves closer to the 2% target and the labor market improves. Meanwhile, European markets closed flat on Tuesday.

Indian shares ended a choppy session modestly higher on Tuesday notwithstanding weak global cues. Key benchmark indexes swung between gains and losses as investors took some profits off the table in recent outperformers. However, late-session buying in realty, metal, consumer durable and technology stocks helped the indexes recoup earlier losses.

Markets Today

The trend deciding level for the day is 24,421 / 7,292 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 24,543 - 24,709 / 7,337 - 7,398 levels. However, if NIFTY trades below 24,421 / 7,292 levels for the first half-an-hour of trade then it may correct 24,255 - 24,133 / 7,231 - 7,186 levels.

Result Preview

UCO Bank- (CMP: Rs.107 / TP: - / Downside: -)

UCO Bank is slated to announce its 4QFY2014 results today. We expect the bank to report a healthy Net Interest Income (NII) growth of 18.1% yoy to Rs.1,592cr. Non-interest income is expected to de-grow by 2.6% yoy to Rs.309cr. Operating expenses of the bank are expected grow by 10.8% yoy to Rs.700cr. Pre-provisioning profit is expected to increase by 16.3% yoy to Rs.1,200cr. Provisioning is expected to decrease 23.5% yoy to Rs.747cr. Net Profit is expected to go increase to Rs.355cr from Rs.50cr in 4QFY13 (in spite of increase in tax expense at Rs.98cr against Rs.6cr in 4QFY2013). At the CMP, the stock trades at a valuation of 0.8x FY2016E. We maintain our Neutral recommendation on the stock.

Economic and Political News

- Tech sector wants faster policy implementation

- Odisha to seek FRBM clearance for ADB assisted power sector project

- Solar cell imports may see high anti-dumping duty

- Inflation control tops RBI agenda for new govt

Corporate News

- Tatas confident of turnaround in European steel arm

- HCL Tech bags $500 million deal from PepsiCo

- Sp iceJet says in advanced talks to get funding

- Dham ra port deal to help L&T, Tata Steel cut debt