Bank of India, Essar Shipping, Tata Steel, Apollo: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, rose 3.71, or less than 0.1 percent, to 18,073.90. The S&P CNX Nifty Index on the National Stock Exchange declined 0.1 percent to 5,416.45. The BSE 200 Index advanced 0.2 percent to 2,308.77. The SGX S&P CNX Nifty Index futures for August delivery were little changed at 5,417 at 10:42 a.m. in Singapore.
Hospitals, hotels, software companies: The Reserve Bank of India said it will allow hotels, hospitals and software companies to borrow more than $100 million overseas with its permission. Apollo Hospitals Enterprise Ltd. (APHS IN), India’s biggest health-care provider, advanced 0.8 percent to 796.25 rupees, Fortis Healthcare Ltd. (FORH IN), second-biggest hospital operator by revenue, was unchanged at 154.95 rupees, Tata Consultancy Services Ltd. (TCS IN), the largest software- services provider, retreated 0.6 percent to 853.45 rupees and EIH Ltd. (EIH IN), which runs the Oberoi brand of hotels, declined 1.4 percent to 131.3 rupees.
Bank of India (BOI IN): The state-owned lender plans to raise as much as 102.9 billion rupees ($2.2 billion) selling bonds and shares to investors. The shares climbed 5.5 percent to 462.3 rupees.
Bharat Heavy Electricals Ltd. (BHEL IN): India’s biggest power-equipment maker is setting up manufacturing plants in the states of Tamil Nadu and Uttar Pradesh. The shares fell 0.2 percent to 2,492.95 rupees.
Educomp Solutions Ltd. (EDSL IN): India’s biggest computer training company by market value was cut to “underweight” from “equal-weight” by Vipin Khare and Gaurav Rateria, analysts at Morgan Stanley, who said a lack of one-time revenues and higher tax rates could drag on earnings growth next year. The stock sank 5.8 percent to 584.15 rupees.
Essar Shipping Ports & Logistics Ltd. (ESRS IN): The nation’s largest shipping company by market value will separate its shipping and oilfield services businesses from the ports unit to accelerate growth in both divisions. Shareholders of Essar Shipping Ports will get one share of the new company for every three held. The stock tumbled 7.9 percent to 119.6 rupees.
Hindustan Copper Ltd. (HCP IN): India’s largest miner of the ore posted a first-quarter profit of 262 million rupees, compared with 2.3 million rupees a year earlier. The shares decreased 0.8 percent to 448.1 rupees.
JSW Steel Ltd. (JSTL IN): India’s third-largest steelmaker plans to sell its first dollar bonds for three years and to borrow in yen for the first time as rupee-denominated finance costs rise, Chief Financial Officer Seshagiri Rao said. The stock fell 0.2 percent to 1,110.3 rupees.
Mahindra & Mahindra Ltd. (MM IN): The nation’s largest maker of sport-utility will fund the bid to buy a controlling stake in South Korea’s Ssangyong Motor Co. through debt and equity, Group Chief Financial Officer Bharat Doshi said yesterday.
Separately, Mahindra offered 535 billion won ($450 million) to buy Ssangyong, MoneyToday reported, citing an unidentified industry official. Mahindra rose 1 percent to 633.05 rupees.
Power Finance Corp. (POWF IN): The board of the state-owned lender to power projects approved selling as much as 20 percent of its equity in new shares and government holdings. The stock gained 3.2 percent to 328.9 rupees.
Tata Steel Ltd. (TATA IN): The nation’s biggest producer turned to first-quarter group profit of 18.3 billion rupees in the three months ended June 30, compared with a 22.1 billion rupee loss a year earlier. The shares lost 0.1 percent to 519.95 rupees.
Texmaco Ltd. (TXM IN): The maker of railway wagons and equipment may develop more than one million square feet of land in New Delhi that belongs to Birla Mills, the Times of India newspaper reported, citing Chairman Saroj Poddar. Texmaco lost 0.6 percent to 144 rupees.
TVS Motor Co Ltd. (TVSL IN): India’s third-largest motorcycle maker will this month resume production of the 125cc Flame motorcycle that was the subject of litigation with Bajaj Auto Ltd., the Business Line newspaper reported, citing Chairman and Managing Director Venu Srinivasan. The stock declined 2.4 percent to 136.35 rupees.
Vishal Retail Ltd. (VISH IN): The retailer may soon be bought by TPG Capital, Mint newspaper reported, citing people it didn’t identify. The stock fell 2.7 percent to 54.75 rupees.