Cairn, Oil & Natural, State Bank, Kale and Ultratech: 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, rose 132.95, or 0.7 percent, to 18,799.66. The S&P CNX Nifty Index on the National Stock Exchange advanced 0.6 percent to 5,640.05. The BSE 200 Index increased 0.6 percent to 2,409.09. SGX CNX Nifty Index futures for September delivery rose 0.7 to 5,672 at 10:42 a.m. in Singapore.

Sugar stocks: India’s sugar manufacturers including Bajaj Hindusthan Ltd. (BJH IN) and Balrampur Chini Mills Ltd. (BRCM IN) may benefit as the world’s biggest sugar consumer allows mills to export about 962,000 metric tons of the refined variety by February under the so-called advance permit program, the food ministry said. Bajaj dropped 0.5 percent to 122.15 rupees and Balrampur declined 1.6 percent to 89.2 rupees.

Amrutanjan Health Care Ltd. (ARJN IN): The maker of ayurvedic and allopathic products plans to buy a beverages company, the Hindu Business Line newspaper said, citing Managing Director S. Sambhu Prasad. Amrutanjan is in talks to buy a company that has a turnover of 200 million rupees ($4.3 million), according to the report. The shares declined 1.1 percent to 727.95 rupees.

Atlas Copco Ltd. (ATCP IN): Atlas Copco AB may increase employees in India by 10 percent a year, Chief Executive Officer Ronnie Leten said, without giving details. The shares climbed 4.7 percent to 1,295.85 rupees.

Crompton Greaves Ltd. (CRG IN): India’s third-biggest electrical equipment maker plans to invest 70 million rupees in a venture with Spain’s ZIV Aplicaciones y Tecnologia S.L., which will produce substation automation systems, according to a statement to the Bombay Stock Exchange. Crompton Greaves dropped 1.1 percent to 304 rupees.

Cairn India Ltd. (CAIR IN): India will vet the ability of London-based miner Vedanta Resources Plc to carry out oil exploration before allowing it to buy a majority stake in Cairn India Ltd., according to Oil Secretary S. Sundareshan. Cairn India fell 0.8 percent to 326.30 rupees.

Dr. Reddy’s Laboratories Ltd. (DRRD IN): The nation’s second-largest drugmaker was raised to “overweight” from “equal-weight” by Sameer Baisiwala and Saniel Chandrawat, analysts at Morgan Stanley, who cited the outlook for earnings. The analysts raised Dr. Reddy’s share-price estimate to 1,752 rupees from 1,509 rupees. The shares declined 0.1 percent to 1,403.5 rupees.

Gujarat NRE Coke Ltd. (GNC IN): The non-state coking-coal producer’s 40.6 percent owner Gujarat NRE Mineral Resources Ltd. may file a draft prospectus for an initial public offering in a month, the Press Trust of India reported. Gujarat NRE declined 1 percent to 63.35 rupees.

Infosys Technologies Ltd. (INFO IN): India’s second-largest computer services provider’s Infosys BPO Ltd. unit will double the number of its workers in Philippines in the next 12 months, the Financial Express newspaper reported, citing Chief Operating Officer Ritesh Idnani. Infosys gained 0.5 percent to 2,895 rupees.

JK Tyre & Industries Ltd. (JKI IN): The tiremaker said it will add capacity to make 5 million car tires at a new plant in Chennai to meet demand, the Press Trust of India reported, citing Marketing Director A.S. Mehta. JK Tyre fell 0.6 percent to 192.05 rupees.

Kale Consultants Ltd. (KALE IN): Accelya Holding World S.L. agreed to buy a controlling 35.6 percent stake in the software maker for 975.2 million rupees and may make an open offer to buy more shares, according to a statement to the Bombay Stock Exchange. Kale rose 2.6 percent to 143.45 rupees.

Oil & Natural Gas Corp. (ONGC IN): India may raise as much as 190 billion rupees selling shares in Oil & Natural Gas Corp., the country’s biggest energy explorer, and Indian Oil Corp., Oil Secretary S. Sundareshan said.

Separately, ONGC and Oil India Ltd. (OINL IN) may be permitted to raise the price of natural gas they sell to steel and chemical-makers by 10 percent, Press Trust of India reported, citing an unidentified official. ONGC was little changed at 1,355.95 rupees. Indian Oil declined 0.9 percent to 410.15 rupees and Oil India fell 0.7 percent to 1,536 rupees.

Power Grid Corp. of India (PWGR IN): The biggest electricity transmission company’s share sale offer to raise 80 billion rupees will begin in November, the Economic Times newspaper reported, citing an unidentified official from the Disinvestment Ministry. The stock fell 1.9 percent to 104.5 rupees.

State Bank of India (SBIN IN): India’s largest lender plans to recast loans to the aviation industry, Chairman Om Prakash Bhatt said in Mumbai today. The shares advanced 3 percent to 2,984.05 rupees.

Ultratech Cement Ltd. (UTCEM IN): The Aditya Birla Group company was downgraded to “reduce” from “hold” by Rajan Kumar, an analyst at Centrum Broking Pvt., with the price estimate set at 830 rupees per share. The shares climbed 3.4 percent to 1,026.3 rupees.

To contact the reporters on this story: Suprotip Ghosh in Mumbai at Sghosh47@bloomberg.net

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