Jindal, Reliance, Tata Communications, Asian Paints: 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’s Sensitive Index, or Sensex, fell 120.24, or 0.7 percent, to 17,957.37, its steepest decline since July 7. The S&P CNX Nifty Index on the National Stock Exchange lost 0.6 percent to 5,397.55. The BSE 200 Index dropped 0.4 percent to 2,287.41. The SGX S&P CNX Nifty Index futures for August delivery were little changed at 5,402 at 11:02 a.m. in Singapore.


HDFC Bank Ltd. (HDFCB IN), Lakshmi Vilas Bank Ltd. (LVB IN) and Central Bank of India have increased interest paid on deposits between 25 basis points and 75 basis points as they seek to raise funds to meet rising loan demand, the Economic Times reported, citing bank officials. HDFC Bank climbed 0.9 percent to 2,086.1 rupees. Lakshmi Vilas gained 0.3 percent to 104.25 rupees. Central Bank (CBOI IN) decreased 1.3 percent to 152.5 rupees.

Asian Paints Ltd. (APNT IN) was downgraded to “neutral” from “overweight” by Percy Panthaki, an analyst at HSBC Holdings Plc, with a share-price estimate of 2,710 rupees. The stock climbed 6.1 percent to 2586.15 rupees.

Cairn India Ltd (CAIR IN): The operator of the nation’s biggest oilfield on land was cut to “hold” from “buy” by Saurabh Handa, an analyst at Citigroup Inc., who said the stock lacks near-term “catalysts” after recent gains. It was also downgraded to “add” from “buy” by Bhaskar Chakraborty, an analyst at IIFL Ltd. The stock dropped 0.9 percent to 328.5 rupees.

Canara Bank Ltd. (CBK IN): The second-best performer on India’s Bankex Index for the last three months plans to sell at least 5 billion rupees ($107 million) in perpetual bonds. The stock rose 2.2 percent 478.7 rupees.

Dabur India Ltd (DABUR IN): The company which makes products ranging from shampoos to beverages was downgraded to “add from “buy” by Arnab Mitra, an analyst at IIFL. The 12- month target price is 213 rupees. The stock declined 1.5 percent to 199.85 rupees.

DLF Ltd. (DLFU IN): India’s biggest developer’s first- quarter profit rose 3.8 percent to 4.11 billion rupees ($87.9 million) from a year earlier, compared with the 4.55 billion rupee average of 19 estimates in a Bloomberg survey. The stock fell 2.5 percent to 311.95 rupees.

Hindustan Unilever Ltd. (HUVR IN): India’s biggest household products maker was cut to “hold” from “buy” by BNP Paribas analysts Joseph George and Manish A Gupta, who said competition will keep the company’s margins “muted.” The analysts cut their share-price estimate to 260 rupees from 300 rupees. The stock lost 3.1 percent to 252.35 rupees.

IDBI Bank Ltd. (IDBI IN): The state-owned lender plans to sell 5 1/2-year U.S. dollar bonds as soon as today, according to a person with knowledge of the matter. The bonds will be fixed- rate, the person said, asking not to be identified because the details are private. The stock fell 2.5 percent to 117.2 rupees.

Jindal Steel & Power Ltd. (JSP IN): The nation’s second- biggest producer of the alloy by market value reported first- quarter profit fell 3.1 percent to 9.57 billion rupees. The average estimate of eight analyst estimates compiled by Bloomberg was for net income of 8.69 billion rupees. The stock fell 1.4 percent to 630.4 rupees.

Larsen & Toubro Ltd. (LT IN): India’s biggest engineering company was cut to “hold” from “buy” by BNP Paribas analysts Vishal Sharma and Shashank Abhisheik, who cited the stock’s valuations. The stock fell 2.2 percent to 1823.65 rupees.

Tata Communications Ltd. (TCOM IN): The phone company controlled by India’s Tata group had first-quarter loss of 2.81 billion rupees, compared with a loss of 551.3 million rupees a year earlier, according to a statement sent to the Bombay Stock Exchange yesterday. The stock fell 0.5 percent to 284.6 rupees.

Reliance Industries Ltd. (RIL IN): India’s biggest company by market value will raise the gas output from KG-D6 field to 80 million cubic meters a day in the financial year 2013 after which the output will be stagnant until 2017, Oil Secretary S. Sundareshan said yesterday.

The stock was cut to “equal-weight” from “overweight” by Vinay Jaising and Rakesh Sethia, analysts at Morgan Stanley, who cited a slowdown in the ramp up of gas production. It was downgraded to “add” from “buy” by Bhaskar Chakraborty, an analyst at IIFL. The stock fell 3.1 percent to 1021.25 rupees.

To contact the reporters on this story: V. Ramakrishnan in Mumbai at rvenkatarama@bloomberg.net; Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net.

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