Godrej Consumer, Exide, Larsen and Steel Authority: India Equity Preview

The following companies may have unusual price changes in India trading. Stock symbols are in parentheses and share prices are as of the last close.

The Bombay Stock Exchange Sensitive Index, or Sensex, fell 159.04, or 0.9 percent, to 16,835.56. The S&P CNX Nifty Index on the National Stock Exchange declined 0.7 percent to 5,059.90. The BSE 200 Index retreated 0.5 percent to 2,149.49.

SGX S&P CNX Nifty Index futures for May delivery declined 0.5 percent to 5,030 at 11:02 a.m. in Singapore today.

Telecom companies: India’s Department of Telecommunications may reject the telecom regulator’s proposal of pricing second- generation radio airwaves on the basis of prices determined through an ongoing auction of third-generation airwaves, Business Standard daily reported, without saying where it got the information. Bharti Airtel Ltd. (BHARTI IN), the nation’s largest mobile-phone operator, gained 0.8 percent to 266.65 rupees. Idea Cellular Ltd. (IDEA IN) fell 0.7 percent to 56.7 rupees while Reliance Communications Ltd. (RCOM IN) declined 1.9 percent to 141.7 rupees.

Aksh Optifibre Ltd. (AKOP IN): The optical-fiber maker plans to raise up to 2.5 billion rupees ($54.8 million) in foreign currency convertible debentures or other securities, the company said in a statement to the stock exchange. Aksh fell 2.7 percent to 22 rupees.

Exide Industries Ltd. (EXID IN): India’s largest maker of automotive batteries plans to spend as much as 4 billion rupees to add capacity as demand for motorcycles “outstrips” the company’s expectations. Exide plans to boost motorcycle battery capacity by as much as 60 percent by April, Managing Director T.V. Ramanathan said. Exide fell 1.3 percent to 118.3 rupees.

GAIL India Ltd. (GAIL IN): The nation’s monopoly natural gas distributor plans to borrow 120 billion rupees overseas by March, 2013. GAIL plans to add 1,200 kilometers of pipeline in the fiscal year to March, 2011, Chairman B.C. Tripathi said yesterday. The shares rose 1.2 percent to 433 rupees.

Godrej Consumer Products Ltd. (GCPL IN): India’s second- biggest soap maker may raise as much as $150 million selling shares to fund its purchase of Sara Lee Corp.’s stake in an Indian venture and other acquisitions, Chairman Adi Godrej said. The stock dropped 2.5 percent to 337.6 rupees.

Larsen & Toubro Ltd. (LT IN): India’s biggest engineering company was raised to “overweight” from “neutral” by Shilpa Krishnan, an analyst at JPMorgan Chase & Co, with a six-month price estimate of 1,910 rupees per share. Manish Saxena, an analyst at Deutsche Bank AG, raised the stock to “buy” from “hold” with a 12-month share-price estimate of 1,900 rupees apiece. Larsen gained 5.1 percent to 1,606.9 rupees.

Steel Authority of India Ltd. (SAIL IN): The nation’s second-biggest producer was raised to “hold” from “sell” by Pradeep Mahtani and Raashi Chopra, analysts at Citigroup Inc., who cited the company’s “largely domestic exposure” and a decline in its stock over the past month. The shares advanced 0.8 percent to 209.95 rupees.

Tarapur Transformers Ltd. (TTRAN IN): The power equipment maker commences trading in Indian stock exchanges today. The company raised 638 million rupees selling 8.5 million shares to the public at 75 rupees a piece.

Tata Consultancy Services Ltd. (TCS IN): The U.K. government will review its outsourcing contracts, including agreements signed with India’s largest software-services provider, the Economic Times reported, without saying where it got the information. Tata Consultancy declined 2.4 percent to 745.75 rupees.

Tata Motors Ltd. (TTMT IN): India’s biggest commercial vehicle maker is in talks with Mexico’s Metalsa SA de CV for contract manufacturing its passenger cars including the Nano, Mint daily reported, citing two people familiar with the matter it didn’t identify. The shares fell 3.3 percent to 789.2 rupees.

To contact the reporters on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net; Vipin V. Nair in Mumbai at Vnair12@bloomberg.net

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