Indian Oil, Reliance Communications, Container Corp: 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, rose 95.36, or 0.6 percent, to 17,117.69. The S&P CNX Nifty Index on the National Stock Exchange advanced 0.5 percent to 5,135.50. The BSE 200 Index increased 0.4 percent to 2,173. SGX CNX Nifty Index futures for March delivery fell 2.4 percent to 4,992.5 at 10:44 a.m. in Singapore.

Oil & Natural Gas Corp. (ONGC IN) and Reliance Power Ltd. (RPWR IN) are among a sixth of the top 3,000 listed Indian companies that may need to sell $53 billion of shares after a new government rule raised the minimum public holding. Companies must increase shares held by the public to a minimum 25 percent by selling at least 5 percent annually, according to the government.

ONGC lost 1.8 percent to 1,189.7 rupees. Reliance Power dropped 0.9 percent to 160.15 rupees.

Oil refiners: The government may increase gasoline and diesel prices by 3 rupees (6 U.S. cents) a liter, the Economic Times reported, citing a proposal that has to be approved by a panel of cabinet ministers on June 7.

Indian Oil Corp. (IOCL IN), the nation’s biggest state- owned refiner, gained 0.8 percent to 354.85 rupees. Bharat Petroleum Corp. (BPCL IN) fell less than 0.1 percent to 579.80 rupees. Hindustan Petroleum Corp. (HPCL IN) rose 1 percent to 367.25 rupees

Container Corp. of India Ltd. (CCRI IN): The state- controlled freight-train operator was cut to “neutral” from “overweight” by Aditya Makharia, an analyst at JPMorgan Chase & Co., who said margin expansion may be restricted even as the company benefits from reviving growth in foreign trade. The stock fell 1.5 percent to 1,299.55 rupees.

Essar Oil Ltd. (ESOIL IN): The company plans to raise as much as $300 million selling bonds on a preferential basis to founder company Essar Energy Holdings Ltd. in one or more tranches, according to a statement to the Bombay Stock Exchange. Essar Oil rose 4.5 percent to 129.05 rupees.

Jet Airways (India) Ltd. (JETIN IN): The nation’s biggest airline’s plane and an Air India aircraft averted a mid-air collision over the weekend after pilots steered them away, the Press Trust of India news agency reported, citing airport officials it didn’t identify. Jet Airways fell 0.3 percent to 491 rupees.

Reliance Communications Ltd. (RCOM IN): The company controlled by billionaire Anil Ambani may raise 90.5 billion rupees ($1.9 billion) selling a 26 percent stake at the current market price to fund expansion after it acquired 3G licenses. AT&T Inc. had preliminary talks to buy a stake in Reliance, the Wall Street Journal reported, citing people familiar with the situation. The stock rose 2.3 percent to 168.55 rupees.

Reliance Industries Ltd. (RIL IN): The oil and petrochemicals company controlled by billionaire Mukesh Ambani may enter the nuclear energy business after being freed from a non compete agreement with the Anil Dhirubhai Ambani Group that barred it from investing in some businesses, including power, the Economic Times newspaper reported, citing a government official it didn’t identify. The report said a Reliance spokesperson did not respond to an e-mail query from the newspaper. The stock was little changed at 1,031.2 rupees.

Shree Renuka Sugars Ltd. (SHRS IN): The company failed to agree on the purchase of Brazilian sugar maker Equipav SA Acucar & Alcool after a shareholder declined to sign the deal, O Estado de S. Paulo reported, citing unnamed bankers involved in the talks. Shree Renuka gained 1.8 percent to 63.35 rupees.

Tata Metaliks Ltd. (TML IN): The company plans to invest 150 billion rupees on a steel plant in India’s southern Karnataka state, Managing Director Harsh Jha said in Bangalore. The stock rose 1.5 percent to 123.30 rupees.

United Bank of India (UNTDB IN): The state-controlled bank said the government has approved an investment of 2.5 billion rupees into the lender through preference shares, according to a statement to the Bombay Stock Exchange. The stock was unchanged at 79.5 rupees.

Zuari Industries Ltd. (ZUAR IN): The company plans to invest 15 billion rupees to set up a cement plant in the southern Indian state of Karnataka, Chairman S.K. Poddar said in Bangalore. Zuari may also spend 7.5 billion rupees to build a fertilizer plant, Poddar said. The stock shed 0.8 percent to 719.75 rupees.

To contact the reporter on this story: Saikat Chatterjee in New Delhi at schatterjee4@bloomberg.net.

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