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Jet, Jindal, MMTC, Power Grid, Tata Steel, Borosil: 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 227.94, or 1.3 percent, to 17,998.41. The S&P CNX Nifty Index on the National Stock Exchange dropped 1.3 percent to 5,408.7. The BSE 200 Index retreated 1.1 percent to 2,309.07. SGX S&P CNX Nifty Index futures for September delivery rose 1.1 percent to 5,463 at 10:52 a.m. in Singapore.

Telecommunication companies: The government is working to change merger and acquisition rules for new telecommunication operators who are unable to use the spectrum allotted to them, the Financial Express said quoting unidentified official sources.

Separately, the Economic Times said “exit options” are being discussed after some companies, which were given licenses two years ago, wanted to surrender them to the government in exchange for a refund of their 16.5 billion rupees ($352 million) fee, quoting an unidentified Department of Telecommunication official.

Bharti Airtel Ltd. (BHARTI IN), the largest mobile-phone operator, fell 1.7 percent to 316.1 rupees. Reliance Communications Ltd. (RCOM IN), the second-biggest, added 0.4 percent to 160.3 rupees.

Borosil Glass Works Ltd. (BRSL IN): The glass manufacturer will sell its property in a Mumbai suburb to Neepa Real Estate Pvt. for 8.3 billion rupees, according to an exchange statement. Borosil rose 5 percent to 779.95 rupees.

DB Realty Ltd. (DBRL IN): The developer that sold shares this year plans to raise 12 billion rupees by selling a 20 percent stake in its Bandra project located in north Mumbai to private equity firms, the DNA newspaper said, quoting two unidentified people. The stock gained 1.7 percent to 433.75 rupees.

Indiabulls Financial Services Ltd. (IBULL IN): India Commodity Exchange Ltd., founded by the financial services company, said it will sell a 26 percent stake to Reliance ADAG, controlled by billionaire Anil Ambani, paring its holding in the exchange to 14 percent, the exchange’s Chief Executive Officer Sanjay Chandel said. Indiabulls added less than 0.1 percent to 138.1 rupees.

Jet Airways (India) Ltd. (JETIN IN): The crew of the nation’s largest airline’s flight 9W2302 from Mumbai to Chennai on Aug. 27 have been suspended pending an investigation into a “serious incident,” the Directorate General of Civil Aviation said in a statement. Jet gained 0.2 percent to 780.2 rupees.

Jindal Steel & Power Ltd. (JSP IN): The environment ministry approved Jindal Power Ltd.’s 130-billion-rupee power project in Chhattisgarh state, the Financial Express newspaper reported, citing a ministry statement. Jindal Power is a unit of New Delhi-based Jindal Steel & Power, which dropped 2.7 percent to 689.65 rupees.

JSW Energy Ltd. (JSW IN): South African Coal Mining Holdings Ltd. said an offer by an affiliate of India’s third- largest steelmaker to buy shares in the company cannot proceed until the offer price has been finalized and Johannesburg’s stock exchange and Securities Regulation Panel has approved a circular for the transaction.

Separately, JSW Energy was rated “underweight” in new coverage by Parag Gupta and Saumya Srivastav, analysts at Morgan Stanley, which cited “slow” capacity growth and its exposure to imported coal. JSW dropped 2.3 percent to 127.3 rupees.

Lanco Infratech Ltd. (LANCI IN): Lanco Solar Energy Pvt., a unit of Lanco Infratech, has won a contract to set up a solar power project at India’s Parliament House in New Delhi, the Press Trust of India said, citing unidentified people. Five companies, including Reliance Industries Ltd., were bidding for the project, the news agency said. Lanco Infratech decreased 1.8 percent to 70.1 rupees.

MMTC Ltd. (MMTC IN): The nation’s largest trading company said it’s seeking to export as much as 30,000 metric tons of pig iron by Sept. 30, according to a tender document posted on the company’s website. Buyers have until Sept. 7 to submit bids, it said.

Separately, the government may sell shares in MMTC in the year ending March, the Press Trust of India reported, citing Commerce and Industry Minister Anand Sharma. The government is likely to sell a 10 percent stake in the company, the report said. The stock fell 1.3 percent to 1,358.6 rupees.

Nocil Ltd. (NOCIL IN): The rubber chemicals-maker plans to set up a plant in Dahej, a port in western Gujarat state, the Press Trust of India reported, citing a company statement. Nocil, controlled by the Arvind Mafatlal Group, will invest 2.5 billion rupees in the plant, the report said. The stock declined 1.6 percent to 21.5 rupees.

Power Grid Corp. of India (PWGR IN): The nation’s biggest electricity transmission company has been shortlisted by Nigeria to manage its power network once the state monopoly is dissolved. Power Grid decreased 1 percent to 104.35 rupees.

Reliance Communications Ltd. (RCOM IN): India’s second- largest mobile-phone operator is in talks with Motorola Inc., Hewlett-Packard Co., Intel Corp. and Sony Corp. for partnership for its 3G mobile business, the Press Trust of India reported, without saying where it got the information. Reliance Communications, controlled by billionaire Anil Ambani, added 0.4 percent to 160.3 rupees.

State Bank of India Ltd. (SBIN IN): The government may cut the size of a rights issue sought by the nation’s biggest lender to raise 200 billion rupees, the Press Trust of India reported, citing unidentified finance ministry officials. The stock declined 2.5 percent to 2,794.4 rupees.

Tata Motors Ltd. (TTMT IN): The carmaker said that one of its $2,500 Nano models caught fire on Aug. 27 in New Delhi, at least the third reported case in India this year involving the world’s cheapest car. The stock declined 0.7 percent to 990.8 rupees.

Tata Steel Ltd. (TATA IN): Sahaviriya Steel Industries Public Co., Thailand’s largest steel producer, plans to buy Tata’s Teesside Cast Products unit in the U.K. for about $500 million as it seeks to turn around the unprofitable business. Tata Steel, India’s producer of the alloy, gained 1.7 percent to 510.15 rupees.

Tech Mahindra Ltd. (TECHM IN): The software company that acquired Satyam Computer Services Ltd. said Chief Executive Officer Sanjay Kalra is to leave the company. Vice Chairman and former CEO Vineet Nayyar will assume operational responsibilities of chief executive, the company said in a stock exchange release. The stock dropped 1.9 percent to 656 rupees.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at

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