Bharti, Panacea, ONGC, Puravankara, Idea Cellular: 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 467.27, or 2.8 percent, to 16,408.5. The S&P CNX Nifty Index on the National Stock Exchange declined 3 percent to 4,919.65. The BSE 200 Index retreated 2.8 percent to 2,092.01.

SGX S&P CNX Nifty Index futures for May delivery gained 0.4 percent to 4,946 at 10:54 a.m. in Singapore today.

Telecom companies: Bharti Airtel Ltd. (BHARTI IN), Reliance Communications Ltd. (RCOM IN), Mahanagar Telephone Nigam Ltd. (MTNL IN), Idea Cellular Ltd. (IDEA IN) and others bought Indian high-speed wireless permits in an auction that raised 677.2 billion rupees ($14.6 billion).

Bharti, India’s largest wireless operator, paid 123 billion rupees and Reliance Communications Ltd., the second largest, paid 85.9 billion rupees to win licenses in 13 regions each, India’s Department of Telecommunications said in a statement. Vodafone’s Indian unit won nine regions for 116.2 billion rupees.

Separately, the nation’s telecom shares were raised to “in-line” from “cautious” by Vinay Jaising and Surabhi Chandna, analysts at Morgan Stanley, who cited the end of an overhang from the sale of high-speed wireless permits and tariff wars. Idea Cellular Ltd. (IDEA IN) was raised to “overweight” from “equal-weight,” according to a note today.

Bharti, the largest wireless operator, slumped 3.1 percent to 259.7 rupees. Reliance Communications declined 5.7 percent to 136.75 rupees. Mahanagar Telephone Nigam fell 7 percent to 56.2 rupees. Idea Cellular fell 7.6 percent to 52.5 rupees.

Oil & Natural Gas Corp. (ONGC IN), the largest state-owned oil explorer, may increase profit by 16 percent after the government agreed to more than double the price of gas produced from fields awarded to state companies, four analysts said. The price will be increased to 6,818 rupees per thousand cubic meters from 3,200 rupees, Information Minister Ambika Soni told reporters in New Delhi. The Cabinet decision will ease revenue losses for ONGC and Oil India Ltd.

ONGC declined 2.5 percent to 1,025.1 rupees. Oil India Ltd. lost 0.7 percent to 1,162.7 rupees.

Panacea Biotec Ltd. (PNCB IN): The World Health Organisation asked the drugmaker to resume supplies of a vaccine after an investigation found no links between the vaccine and deaths of four infants in Bhutan, Economic Times reported, citing Joint Managing Director Rajesh Jain. The shares fell 3 percent to 169.65 rupees.

Puravankara Projects Ltd. (PVKP IN): The real estate developer was raised to “hold” from “sell” by Abhay Shanbhag, an analyst at Deutsche Bank AG, with a 12-month price estimate of 100 rupees per share. Puravankara fell 4 percent to 96.5 rupees.

SJVN Ltd. (SJVN IN): The state-owned Indian power utility commences trading in Indian stock exchanges today. The company raised 10.6 billion rupees selling 415 million shares to the public at 26 rupees a piece.

To contact the reporters on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net

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