The Bombay Stock Exchange Sensitive Index, or Sensex, gained 311.35, or 1.6 percent, to 19,906.10, its highest close since January 2008. The S&P CNX Nifty Index on the National Stock Exchange advanced 1.6 percent to 5,980.45. The BSE 200 Index increased 1.3 percent to 2,527.22. SGX S&P CNX Nifty Index futures for September delivery were little changed at 6,005.5 at 10:44 a.m. in Singapore.
Infrastructure shares: GVK Power & Infrastructure Ltd. (GVKP IN) was rated “outperform” in new coverage at Credit Suisse Group AG, which said the stock offers “the right combination of catalysts and valuation” given the outlook for infrastructure development in India. The brokerage has a share- price estimate of 56 rupees for GVK.
The brokerage also initiated coverage of GMR Infrastructure Ltd. (GMRI IN) and IRB Infrastructure Developers Ltd. (IRB IN) with “neutral” recommendations,” according to a report by Arya Sen, an analyst at Credit Suisse. Sen’s forecast for GMR shares is 63 rupees while IRB’s stock estimate is 277 rupees.
GVK Power fell 0.9 percent to 48 rupees. GMR climbed 0.6 percent to 58.95 rupees. IRB declined 0.4 percent to 278.3 rupees.
EIH Ltd. (EIH IN): The operator of India’s luxury Oberoi hotel chain will consider at a board meeting on Sept. 23 selling shares in a rights offer, the company said in a statement to the Bombay Stock Exchange. The offer may allow the Mukesh Ambani- controlled Reliance group to increase its holding from 14.8 percent, the Economic Times reported, citing analysts it didn’t identify. EIH lost 1.1 percent to 136.7 rupees.
Indian Oil Corp. (IOCL IN) and Hindustan Petroleum Corp. (HPCL IN): The companies will increase gasoline prices by as much as 0.28 rupee a liter, effective midnight, CNBC television reported yesterday, without saying where it got the information. Indian Oil advanced 2.9 percent to 441.1 rupees. Hindustan Petroleum added 2.2 percent to 544.25 rupees.
Indraprastha Gas Ltd. (IGL IN): The natural gas distributor was downgraded to “underweight” from “overweight” by Pradeep Mirchandani, an analyst at JPMorgan India Pvt., with a three- month price estimate of 305 rupees per share. The stock dropped 0.3 percent to 327.15 rupees.
Larsen & Toubro Ltd. (LT IN): India’s biggest engineering company was rated “hold” in new coverage by Sunil Teluja, an analyst at ICICI Securities, with a 12-month price estimate of 1,985 rupees. The shares rose 1.9 percent to 2,000.05 rupees.
Shriram Transport Finance Co. (SHTF IN): The company was rated new “buy” by Nikhil Poddar, an analyst at Alchemy Research, with a 12-month price estimate of 889 rupees. Shriram Transport rose 3.1 percent to 798.85 rupees.