Bharti, Kingfisher Airlines, Pfizer, Cipla, Cadila: 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, advanced 1 percent to 17,651.73. The S&P CNX Nifty Index on the National Stock Exchange rose 1.1 percent to 5,296.85. The BSE 200 Index increased 1 percent to 2248.74. The SGX S&P CNX Nifty Index futures for July delivery increased 0.4 to 5,328 at 10:54 a.m. in Singapore.

Telecom stocks: Bharti Airtel Ltd. (BHARTI IN), India’s largest mobile-phone operator, Idea Cellular Ltd. (IDEA IN) and Reliance Communications Ltd. (RCOM IN), the second-largest, were upgraded at Credit Suisse Group AG by analysts led by Bhuvnesh Singh, who cited an improvement in the competitive environment. Bharti and Idea Cellular were raised to “outperform” while Reliance Communications had its rating increased to “neutral.” Bharti gained 1.7 percent to 280.95 rupees. Idea climbed 0.2 percent to 59.1 rupees. Reliance rose 1.4 percent to 187.8 rupees.

Cadila Healthcare Ltd. (CDH IN): Shire Plc sued Cadila Healthcare to prevent sales of a generic version of ulcerative colitis treatment Lialda until a patent expires in 2020. Cadila, based in Ahmedabad, India, and its Zydus unit are seeking U.S. Food and Drug Administration approval to sell a lower-cost version of the drug, according to Shire’s complaint filed in federal court in Wilmington, Delaware. Sujatha Rajesh, head of corporate communications at Zydus Cadila, said the company couldn’t immediately respond. Cadila slid 0.3 percent to 657.2 rupees.

Cipla Ltd. (CIPLA IN): Amar Lulla, the chief executive officer of the drugmaker, may step down in the next year, the Economic Times reported, citing an unidentified company official familiar with the development. Chief Financial Officer S Radhakrishnan may become CEO for a few years until Kaamil Hamied takes over, the newspaper said. The stock added 1.4 percent to 339.45 rupees.

HCL Infosystems Ltd. (HCLI IN): The Indian computer maker acquired a 60 percent stake in Dubai-based NTS Group for $6.5 million, HCL said in a statement to the Bombay Stock Exchange yesterday. HCL rose 0.3 percent to 112.9 rupees.

Kingfisher Airlines Ltd. (KAIR IN): The airline got India’s approval to start code-sharing with British Airways Plc, the Mint newspaper reported, citing two unidentified government officials. The stock rose 0.6 percent to 50.3 rupees.

NTPC Ltd. (NATP IN): India’s biggest power producer plans to build a 1,320 megawatt coal-based thermal power plant in the western Indian state of Gujarat, according to an e-mailed statement yesterday. The state-run company’s shares declined 0.6 percent to 199.4 rupees.

Petronet LNG Ltd. (PLNG IN): India’s biggest buyer of liquefied natural gas was raised to “buy” from “sell” by Citigroup Inc. analyst Saurabh Handa. The brokerage raised its share-price estimate to 106 rupees from 75 rupees. The stock climbed 0.4 percent to 78.45 rupees.

Pfizer India Ltd. (PFIZ IN): The world’s largest drugmaker introduced a new variant of its pneumonia vaccine Prevanar-13 in India yesterday, the Press Trust of India reported, citing Kewal Handa, managing director of the drugmaker’s Indian unit. The shares were little changed at 1,218.05 rupees.

PTC India Ltd. (PTCIN IN): The nation’s biggest power trader may sell as much as an 11 percent stake in its PTC Financial Services unit to SAIF Partners Ltd., the Economic Times reported, citing an unidentified banker familiar with the transaction. The Hong Kong-based firm may invest 2.1 billion rupees in the company, the report said. PTC increased 1.5 percent to 100.45 rupees.

Punj Lloyd Ltd. (PUNJ IN): The engineering and construction company was raised to “buy” from “hold” at Ambit Capital by equity analyst Parikshit Kandpal. The 12-month target price is 185 rupees. The shares advanced 0.4 percent to 135.95 rupees.

Shiv-Vani Oil & Gas Exploration Services Ltd. (SVOG IN): The exploration company partly owned by Templeton Asset Management Ltd. plans to borrow as much as $95 million selling convertible bonds, it said in a statement to the Bombay Stock Exchange yesterday. The shares rose 1.8 percent to 456.25 rupees.

To contact the reporter on this story: Ruth David in Mumbai at rdavid9@bloomberg.net

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