Ashok Leyland, Cairn, Reliance, Kingfisher, Shriram: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, fell 84.62, or 0.4 percent, to 19,417.49. The S&P CNX Nifty Index on the National Stock Exchange lost 0.6 percent to 5,828.70. The BSE 200 Index declined 0.6 percent to 2,467.43. SGX CNX Nifty Index futures for September delivery were unchanged at 5,847 as of 10:44 a.m. in Singapore.
Software exporters: India approved proposals by Infosys Technologies Ltd. (INFO IN) and Wipro Ltd. (WPRO IN) to set up special economic zones in the southern city of Bangalore for information technology services, according to an e-mailed statement from the government yesterday.
Infosys, India’s second-largest software exporter, dropped 2.9 percent to 2,965.95 rupees. Wipro, the country’s third- biggest software exporter, fell 1.1 percent to 423.45 rupees.
Ashok Leyland Ltd. (AL IN): The maker of buses and trucks won an order from the agency that procures vehicles for the southern Indian state of Tamil Nadu to supply 2,850 buses, according to a statement to the Bombay Stock Exchange yesterday.
Separately, India’s crackdown on illegal mining in three states has reduced truck sales, the Economic Times reported, citing three people, including Rajive Saharia, executive director at Ashok Leyland. The shares fell 1.9 percent to 74.7 rupees.
Bharti Airtel Ltd. (BHARTI IN): The country’s biggest mobile-phone operator is in talks with other Indian mobile operators including Vodafone Essar Ltd. (VOD LN) and Idea Cellular (IDEA IN), to form an alliance to offer third- generation services nationwide, The Hindu Business Line reported, without saying where it got the information. Bharti lost 2.4 percent to 347.55 rupees. Idea advanced 0.1 percent to 74.95 rupees.
Bhushan Steel Ltd. (BHUS IN): The company was rated “buy” in new coverage by Anuj Singla, an analyst at Deutsche Bank AG, with a share-price estimate of 2,400 rupees. The stock gained 2.1 percent to 1,978.85 rupees.
Cairn India Ltd. (CAIR IN): Indian regulatory approval for Cairn Energy Plc’s proposed sale of a stake in its local unit to Vedanta Resources Plc may take at least a month, Oil Secretary S. Sundareshan said in New Delhi.
Separately, Vedanta Resources may have to pay a higher open-offer price to Cairn India minority shareholders, the Economic Times reported, citing Omkar Goswami, an independent director on the board of Cairn India. The shares rose 1.1 percent to 335.95 rupees.
Hindustan Petroleum Corp. (HPCL IN): The state-run refiner plans to sell shares in its refinery at Bathinda in northern India after it’s commissioned, Managing Director S. Roy Choudhury said in Mumbai yesterday.
The refinery will start production by July next year, K.V. Rao, executive director, finance, said. The shares fell 1.8 percent to 533.75 rupees.
Kingfisher Airlines Ltd. (KAIR IN): India’s second-biggest carrier has put on hold a plan to raise $200 million selling shares overseas until it gets approval from banks to restructure its debt, the Wall Street Journal reported yesterday, citing a person it didn’t identify. Prakash Mirpuri, a spokesman of the carrier, denied the report when called for comments. The shares fell 2.1 percent to 64.65 rupees.
Reliance Industries Ltd. (RIL IN): India’s biggest company by market value is considering investing in a Chesapeake Energy Corp. shale-gas asset, three people with direct knowledge of the matter said. The shares dropped 1.3 percent to 1,000.35 rupees.
Reliance Capital Ltd. (RCAPT IN): The owner of India’s largest mutual fund manager is seeking a Chinese partner to tap funds in China, said Vikrant Gugnani, chief executive of the firm’s international businesses. The shares fell 1.5 percent to 810.8 rupees.
Shriram EPC Ltd. (SEPC IN): The engineering company won orders worth 10 billion rupees ($216 million) across its various business divisions, according to a statement to the Bombay Stock Exchange. The shares rose 7 percent to 295.6 rupees.
Tata Motors Ltd. (TTMT IN): The owner of Jaguar and Land Rover is considering building a car plant in either Brazil or Mexico, O Estado de S. Paulo newspaper reported, citing Vice Chairman Ravi Kant. The company has sent specialists to both countries to determine the best place to set up the factory, the newspaper said. The shares rose 0.4 percent to 1,028.8 rupees.
Titan Industries Ltd. (TTAN IN): India’s largest jewelry retailer was rated “buy” by Sunita Sachdev, an analyst at UBS AG, with a share-price estimate of 3,700 rupees. The stock retreated 0.4 percent to 3,111.35 rupees.