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Reliance Industries, Larsen, Tata Steel: India Stocks 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 184.17, or 0.9 percent, to 20,045.18. The S&P CNX Nifty Index on the National Stock Exchange advanced 1 percent to 6,018.3. The BSE 200 Index increased 0.9 percent to 2,532.46. SGX S&P CNX Nifty Index futures for September delivery climbed 0.8 percent to 6,075.0 at 10:55 a.m. in Singapore.

Steelmakers: Tata Steel Ltd. (TATA IN), Steel Authority of India Ltd. (SAIL IN) and JSW Steel ltd. (JSTL IN), the nation’s top producers, may raise prices by as much as 4 percent next month because of lower imports from China and a surge in rural demand, RBS Equities (India) Ltd. said. Tata gained 1 percent to 629.95 rupees. Steel Authority climbed 0.8 percent to 205.95 rupees. JSW Steel rose 1.5 percent to 1,275.8 rupees.

Balrampur Chini Mills Ltd. (BRCM IN) and Shree Renuka Sugars Ltd. (SHRS IN) were raised to “overweight” from “underweight” at Morgan Stanley, which also upgraded its view on the Indian sugar industry to “attractive” from “cautious.” The brokerage raised its share-price estimate for Balrampur Chini to 129 rupees from 57 rupees and increased its forecast for Shree Renuka’s shares to 109 rupees from 43 rupees, according to a report by Nillai Shah and Girish Achhipalia. Balrampur climbed 1 percent to 88.6 rupees. Shree Renuka added 2.9 percent to 82.25 rupees.

Bharat Heavy Electricals Ltd. (BHEL IN): The power equipment maker is in talks with the Steel Authority of India Ltd. (SAIL IN) and Vizag Steel on forming a joint venture to manufacture high-grade steel in India, the Financial Express reported on Sept. 25, citing Chairman B.P. Rao. Talks are also in progress with South Korea’s Posco to acquire technology. Bharat Heavy advanced 0.4 percent to 2,457.2 rupees. Steel Authority stock rose 0.8 percent to 205.95 rupees.

Bharat Petroleum Corp. (BPCL IN): The second-biggest state refiner plans to spend 200 billion rupees ($4.4 billion) to expand its oil-processing capacity by almost 50 percent, Finance Director S.K. Joshi said in an interview on Sept. 24. The company may also spend as much as 10 billion rupees to diversify into power generation, Managing Director S. Radhakrishnan told reporters. The stock rose 0.8 percent to 789.3 rupees.

Electrosteel Castings Ltd. (ELSC IN): Electrosteel Steels Ltd., a unit of Electrosteel Castings Ltd., received demand for 8.1 times the shares on offer on the last day of its initial sale on Sept. 24, according to data on the National Stock Exchange’s website. The stock rose 0.9 percent to 48.1 rupees.

Gammon Infrastructure Projects Ltd. (GISP IN): The heavy construction company may raise as much as 2 billion rupees selling stakes in Indian port developments and road projects by March 31, Business Standard reported Sept. 26, citing Parag Parikh, chief financial officer. The shares were unchanged at 24.45 rupees.

Hindustan Construction Co. (HCC IN): The construction and engineering company won two contracts worth 6.6 billion rupees from GMR (Badrinath) Hydro Power Generation Pvt. for a project in North India, the company said in a statement to the exchange Sept. 24. The stock added 0.9 percent to 60.1 rupees.

Indiabulls Financial Services Ltd. (IBULL IN): India’s consumer affairs ministry approved Reliance-Anil Dhirubhai Ambani Group’s proposal to buy a 26 percent stake in Indian Commodity Exchange Ltd. from Indiabulls Financial Services Ltd., Press Trust of India reported on Sept. 24, citing a ministry official it didn’t identify. Indiabulls Financial lost 0.7 percent to 144.35 rupees.

Indian Hotels Co. (IH IN) plans to set up at least three hotels in China soon, Xinhua News Agency reported, citing Chief Executive Officer Raymond Bickson. Contracts to manage two hotels have already been signed, and another is expected soon, Xinhua said. The stock added 0.2 percent to 103.35 rupees.

Infosys Technologies Ltd. (INFO IN): The stock was downgraded to “neutral” from “buy” at Bank of America Merrill Lynch. The shares advanced 0.9 percent to 3,049.1 rupees.

Larsen & Toubro Ltd. (LT IN): The largest engineering company will spin off its financial services company into an independent entity under a separate holding company, the Business Standard reported, without saying where it got the information. The move is aimed at facilitating its application for a banking license when the opportunity arises, the report said. The stock rose 1 percent to 2,019.15 rupees.

Patni Computer Systems Ltd. (PATNI IN): The software services provider was rated “sell” in new coverage at Goldman Sachs Group Inc., with a share-price estimate of 391 rupees, according to a report by analysts led by Rishi Jhunjhunwala. The stock rose 0.5 percent to 443.1 rupees.

Reliance Industries Ltd. (RIL IN): India’s most valuable company plans to invest more than 400 billion rupees to expand its refining complex at Jamnagar in the western Indian state of Gujarat, the Mint reported, citing two company officials it didn’t identify. The company has set aside 160 billion rupees to build a cracker unit as part of the project, the report said. The stock added 0.4 percent to 1,001.65 rupees.

Reliance Power Ltd. (RPWR IN): The power generator is speeding up the construction of railway lines from coal mines to ports in Indonesia, the Business Standard reported Sept. 26, citing an unidentified official at Reliance. Coal extracted from the mines is meant for the company’s proposed power plant in Krishnapatnam town, southern India. Reliance Power increased 1.9 percent to 161 rupees.

Religare Enterprises Ltd. (RELG IN): Religare Voyages Ltd., a unit of the financial services firm controlled by the billionaire Singh brothers, has applied for permission to start a regional airline that may be expanded to a full services carrier, the Mint reported, quoting Sandeep Bhatt, chief operational officer of Religare Voyages. Religare Enterprises fell 0.1 percent to 460.9 rupees.

Rolta India Ltd. (RLTA IN): The engineering software services company was rated “neutral” in new coverage at Goldman Sachs Group Inc. The brokerage has a share-price estimate of 182 rupees, according to a report by analysts led by Rishi Jhunjhunwala. The stock fell 0.6 percent to 169.9 rupees.

Rural Electrification Corp. (RECL IN): India’s state- controlled lender to power projects aims to distribute 270 billion rupees in loans by March 31, the Business Standard reported Sept. 26, citing J.M. Phatak, chairman and managing director. The stock rose 1.3 percent to 342.75 rupees.

Sahara One Media & Entertainment Ltd. (SHRA IN): The Sahara group’s offer to buy out the creditors of Hollywood studio Metro-Goldwyn-Mayer Inc. for more than $2 billion has been rejected, the Associated Press reported. The stock advanced 1 percent to 191.65 rupees.

Satyam Computer Services Ltd. (SCS IN): The Indian software exporter said its American depository receipts will move from the New York Stock Exchange and may trade in the Over-the- Counter market, in a statement to the exchange Sept. 24. The stock lost 5.9 percent to 100.2 rupees.

SKS Microfinance Ltd. (SKSM IN): The lender backed by George Soros was rated “outperform” in new coverage at Credit Suisse Group AG, which cited the company’s “profitable growth model.” The brokerage has a share-price estimate of 1,575 rupees, according to a report by Ashish Gupta and Deepak Ramineedi. The stock fell 2.3 percent to 1,333.05 rupees.

To contact the reporters on this story: Madelene Pearson in Mumbai on mpearson1@bloomberg.net; Adi Narayan in Mumbai at anarayan8@bloomberg.net

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net

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