Infosys, Jubilant FoodWorks, Ess Dee and Hero Honda: 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, declined 163.97, or 1 percent, to 16,617.10. The S&P CNX Nifty Index on the National Stock Exchange lost 0.9 percent to 4,987.10. The BSE 200 Index retreated 0.9 percent to 2,115.38. SGX CNX Nifty Index futures for June delivery lost 0.1 to 4,960.5at 10:49 a.m. in Singapore.

DLF Ltd. (DLFU IN): India’s biggest real estate developer got government approval to revive a plan to build an economic zone in Kolkata, the Economic Times newspaper reported, without saying where it got the information. The stock dropped 2.5 percent to 257.3 rupees.

Ess Dee Aluminium Ltd. (EDA IN): The packaging maker was rated “buy” by Kaustav Kakati, an analyst at Batlivala & Karani Securities, in new coverage of the stock with a price estimate of 652 rupees. The shares fell 0.3 percent to 517.5 rupees.

Hero Honda Motors Ltd. (HH IN): The Munjal family, owners of various companies including India’s biggest motorcycle maker Hero Honda Motors, have split their business in a cashless deal, the Economic Times newspaper reported, citing a person it didn’t identify with knowledge of the deal. Hero Honda will be owned and managed by Brijmohan Lall Munjal and his sons, according to the report. The stock dropped 2.4 percent to 1,930.65 rupees.

ICICI Bank Ltd. (ICICIBC IN): India’s second-largest lender and Vodafone Group Plc, the world’s largest phone company, were recommended by CNBC’s “Mad Money” host Jim Cramer, who said the companies will benefit from the increasing size of the middle class in India. ICICI lost 2.9 percent to 817.5 rupees.

Indiabulls Real Estate Ltd. (IBREL IN): The property developer’s buildings with Lodha Group and DB Realty face objection from a Maharashra state environmental body, Hindustan Times reported. An Indiabulls official said the decision wasn’t final, the paper said. Indiabulls shares fell 4 percent to 144.1 rupees.

Infosys Technologies Ltd. (INFO IN): India’s second-largest software services provider was raised to “buy” from “neutral” by Ashwin Mehta, an analyst at Motilal Oswal Securities Ltd. , with a share-price estimate of 3,000 rupees. The shares declined 0.6 percent to 2,654.5 rupees.

Jet Airways India Ltd. (JETIN IN) and Kingfisher Airlines Ltd. (KAIR IN): The Competition Commission of India has revived an investigation to examine whether a 2008 alliance formed between Jet Airways (India) Ltd. and Kingfisher Airlines Ltd., the Indian carrier owned by the nation’s largest brewer, constitutes a cartel, the Mint newspaper reported, citing a commission official it didn’t identify.

Jet Airways, India’s biggest airline, advanced 1.2 percent to 493.1 rupees. Kingfisher Airlines Ltd. gained 3.6 percent to 44.85 rupees.

Jubilant FoodWorks Ltd. (JUBI IN): The franchisee of Domino’s Pizza Inc. was upgraded to “reduce” from “sell” by Manoj Menon and Amrita Basu, analysts at Kotak Institutional Equities, a unit of Kotak Securities Ltd., citing valuations, according to an e-mailed note to clients yesterday. The shares dropped 1.3 percent to 280.05 rupees.

Reliance Communications Ltd. (RCOM IN): The wireless operator and Emirates Telecommunications Corp. started talks about a possible purchase of a stake in the Indian company about two months ago, the Financial Times said, citing an unidentified person familiar with the situation. Etisalat had also considered acquiring a stake in Idea Cellular or Aircel, according to the report. Reliance Communications lost 5.1 percent to 167.65 rupees.

State Bank of India (SBIN IN): A planned venture between State Bank of India and Tata Finance Ltd. is awaiting the approval of the nation’s central bank, O.P. Bhatt, chairman of the country’s biggest lender, said. State Bank fell 0.1 percent to 2,263.8 rupees.

Steel Authority of India Ltd. (SAIL IN): The steelmaker was raised to “buy” from “sell” by Navin Gupta, an analyst at UBS AG, with a share-price estimate of 240 rupees. The stock fell 2.2 percent to 189.1 rupees.

Tata Power Co. (TPWR IN): India’s largest non-state electricity generator will add 750 megawatts of capacity in the year ending March 31, the Business Standard newspaper reported, citing a company presentation. The stock increased 1.8 percent to 1,243.45 rupees.

To contact the reporter on this story: Pratik Parija in New Delhi at pparija@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.