Mahindra & Mahindra, ONGC, Tata Motors, Monnet Ispat: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, fell 191.57, or 1.1 percent, to 17,509.33, the lowest since June 16. The gauge climbed 1 percent in the three months ended June, completing the longest quarterly winning streak since at least September 1979, according to data compiled by Bloomberg.
The S&P CNX Nifty Index on the National Stock Exchange lost 1.2 percent to 5,251.40. The BSE 200 Index retreated 0.8 percent to 2,229.53. SGX CNX Nifty Index futures for July delivery fell 0.2 to 5,250 at 11:02 a.m. in Singapore.
Axis Bank Ltd. (AXSB IN): The lender and three other banks were raised to “buy” from “hold” by BNP Paribas analysts Vijay Sarathi and Abhishek Bhattacharya, who cited rising loan growth and declining credit costs. Axis Bank is the brokerage’s “top pick,” the analysts said. They also upgraded Bank of India, ICICI Bank Ltd. and Punjab National Bank Ltd. to “buy.”
Axis Bank dropped 0.7 percent to 1,233.65 rupees. Bank of India (BOI IN) gained 2.2 percent to 357 rupees. ICICI Bank (ICICIBC IN) sank 2.4 percent to 841.45 rupees. Punjab National Bank (PNB IN) lost 2.7 percent to 1,020.35 rupees.
Colgate-Palmolive (India) Ltd. (CLGT IN): The maker of toothpaste and soap was cut to “neutral” from “outperform” by Govindarajan Chellappa, an analyst at Credit Suisse AG, with a share-price estimate of 884 rupees. The stock gained 0.4 percent to 840.6 rupees.
Indiabulls Real Estate Ltd. (IBREL IN): The developer was rated “overweight” in new coverage by Morgan Stanley analysts Sameer Baisiwala and Arunabh Chaudhari, who said they expect the company can unlock “significant value in its underlying assets” over the next three years. The analysts have a share- price estimate of 200 rupees. The stock declined 0.8 percent to 156.35 rupees.
Jaypee Infratech Ltd. (JPIN IN): The unit of India’s biggest builder of dams was rated “equal-weight” in new coverage by Morgan Stanley analysts Baisiwala and Chaudhari, who said the value in the company’s assets may take as many as 24 months to be unlocked and that its near-term earnings are dependent on one “micro market” that may slow in coming quarters despite its “strong potential.” The analysts have a share-price estimate of 85 rupees. The shares climbed 1.7 percent to 90.4 rupees.
NIIT Ltd. (NIIT IN): The software company was raised to “buy” from “sell” by Citigroup Inc. analysts Vishal Agarwal and Surendra Goyal, who cited the stock’s “reasonable valuations” and improving operating metrics. The analysts raised their share-price estimate to 85 rupees from 50 rupees. The shares slid 1.7 percent to 63.65 rupees.
Mahindra & Mahindra Ltd. (MM IN): India’s biggest maker of sport-utility vehicles and tractors declined to comment on a newspaper report that it’s in talks with Boeing Co. to buy a plant in Australia, Hemant Luthra, sector president at unit Mahindra Systech, said in an e-mailed statement. The stock fell 1.9 percent to 615.15 rupees.
Monnet Ispat & Energy Ltd. (MISP IN): Blackstone Group LP will invest 2.75 billion rupees ($59 million) to buy a 12.5 percent stake in India’s Monnet Power Co., the world’s biggest private-equity firm said in a statement. Monnet Power is a unit of sponge-iron maker Monnet Ispat & Energy Ltd. Monnet Ispat rose 0.1 percent to 402.80 rupees.
Oil & Natural Gas Corp. (ONGC IN): India’s biggest exploration company has approved in-principle cluster development of four fields in the western offshore area, the company said in a release. ONGC fell 1.4 percent to 1,302.3 rupees.
Persistent Systems Ltd. (PSYS IN): The software company was rated “outperform” in new coverage by Credit Suisse Group AG analysts led by Sunil Tirumalai, who said the stock should trade at a premium to its peers given its growth and margin profile. The analysts have a share-price estimate of 540 rupees. The shares jumped 4.3 percent to 429.85 rupees.
Reliance Communications Ltd. (RCOM IN): India’s second- largest mobile-phone operator acquired cable television operator Digicable in an all-stock deal, according to a statement on the Bombay Stock Exchange. Reliance Communications fell 3.1 percent to 192.25 rupees.
Reliance Power Ltd. (RPWR IN): The company controlled by billionaire Anil Ambani got approval for a $600 million loan from the U.S. Export-Import Bank for a power project in India’s Madhya Pradesh state, the Economic Times reported, citing a letter written by the bank’s Chairman Fred Hochberg. The loan is conditional on Reliance Power investing in the renewable energy sector, according to the report. Reliance shares decreased 1.1 percent to 169.55 rupees.
Steel Authority of India Ltd. (SAIL IN): The nation’s second-biggest producer and Posco’s joint venture to set up a steel mill in the South Asian nation will start in September after a detailed project report is prepared, Business Standard reported, citing Steel Secretary Atul Chaturvedi. The 110 billion rupee project will be located at Bokaro in Jharkhand state where Steel Authority has a mill, according to the report. The two companies may also build another plant in Maharashtra state at a cost of 150 billion rupees, the newspaper said. Steel Authority dropped 1.8 percent to 189.25 rupees.
Sun Pharmaceutical Industries Ltd. (SUNP IN): India’s largest drugmaker by market value introduced a generic version of Novartis AG’s Exelon treatment for mild to moderate dementia, according to an e-mailed statement. Sun Pharmaceutical would share a 180-day marketing exclusivity for the generic drug in the U.S., the statement said. The stock fell 1.8 percent to 1,752.65 rupees.
Tata Motors Ltd. (TTMT IN): The owner of Jaguar and Land Rover sold 67,730 vehicles in June, compared with 45,440 units sold a year earlier, the company said in an e-mailed statement.
Separately, Tata Chief Executive Officer Carl-Peter Forster said Land Rover needs to develop models that produce less carbon. Tata Motors fell 2 percent to 762.75 rupees.