Godrej Properties, Ispat Industries, MMTC, Larsen: 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, fell 372.59, or 1.8 percent, to 20,125.05. The S&P CNX Nifty Index on the National Stock Exchange declined 1.9 percent to 6,062.65. The BSE 200 Index retreated 1.7 percent to 2,558.95. SGX S&P CNX Nifty Index futures for October delivery fell 0.4 percent to 6,057.0 as of 10:43 a.m. in Singapore.

Oil refiners: Refiners including Indian Oil Corp. (IOCL IN) almost halved their losses from selling fuel below costs in the three months ended Sept. 30 after the government allowed them to set gasoline prices, the Financial Express reported. Indian Oil, Bharat Petroleum Corp. (BPCL IN) and Hindustan Petroleum Corp. (HPCL IN) cut their losses to about 110 billion rupees ($2.49 billion) in the quarter from 200.7 billion in the three months a year earlier, the newspaper reported, citing Oil Secretary S. Sundareshan. Indian Oil fell 1.8 percent to 401.85 rupees. Bharat Petroleum lost 3.9 percent to 695.15 rupees. Hindustan Petroleum dropped 1.9 percent to 488.35 rupees.

Axis Bank Ltd. (AXSB IN): The fourth-largest lender by market value was cut to “neutral” from “buy” at Nomura Holdings Inc., which said the stock hasn’t factored in risks of a “long-growth slowdown.” The brokerage raised its share-price estimate to 1,675 rupees from 1,345 rupees, according to a report by Mahrukh Adajania and Amit Nanavati. The stock sank 4 percent to 1,502.05 rupees.

GMR Infrastructure Ltd. (GMRI IN): The unit of the GMR Group got state government approval to set up a 25-megawatt solar photovoltaic project in the western Indian state of Gujarat. The stock declined 2.1 percent to 56.45 rupees.

Godrej Properties Ltd. (GPL IN): The property developer’s second-quarter profit dropped 26 percent, according to an e-mail from the company. The stock fell 2.2 percent to 728.1 rupees.

HDFC Bank Ltd. (HDFCB IN): The third-biggest lender was cut to “neutral” from “buy” at Nomura Holdings Inc., which cited its “strong price performance,” according to a report by Mahrukh Adajania and Amit Nanavati. The stock decreased 1.6 percent to 2,386.25 rupees.

Indian Oil Corp. (IOCL IN): The nation’s second-largest refiner increased jet fuel prices to 43,242 rupees a kiloliter from 41,983.59 rupees a kiloliter in Mumbai on Oct. 16, according to the company’s website. The stock slipped 1.8 percent to 401.85 rupees.

Infosys Technologies Ltd. (INFO IN): The second-largest software services provider was downgraded to “neutral” from “overweight” by Viju George an analyst at JPMorgan Chase & Co. The brokerage set a 12-month price estimate of 3,400 rupees per share. The stock sank 3.4 percent to 3,076.3 rupees.

Ispat Industries Ltd. (NDEN IN): Stemcor, a steel trader, may increase its 10 percent stake in the steelmaker and buy its 3 million-ton pellet plant, the Business Standard reported, citing Stemcor India Managing Director Mathew Stock. The stock retreated 3.1 percent to 21.85 rupees.

Larsen & Toubro Ltd. (LT IN): The engineering company’s financial services unit plans to sell its remaining 11.8 percent stake in Kalindee Rail Nirman (Engineers) Ltd., the Economic Times reported, citing a person it didn’t identify. The stock declined 1.2 percent to 1,988.6 rupees.

Mahindra & Mahindra Ltd. (MM IN): The automaker may sell Ssangyong Motor Co.’s Korando C sport-utility vehicle in India, Choi Sang Jin, chief financial officer of the South Korean carmaker, said in an interview. The stock slipped 1.1 percent to 710.65 rupees.

MMTC Ltd. (MMTC IN): India delayed selling shares in the country’s largest state-owned trading company to the financial year starting April because of a spate of public issues scheduled in the second half of this business year, Press Trust of India reported, citing a finance ministry official it didn’t identify. The government owns 99.33 percent of MMTC. The stock retreated 0.8 percent to 1,326.8 rupees.

Oil India Ltd. (OINL IN): The state-run energy explorer has hired seven banks to help it complete buying a shale-gas asset abroad in the year to March 31, 2011, the Business Standard said, citing a company executive it didn’t name. The stock fell 0.7 percent to 1,434.55 rupees.

Oil & Natural Gas Corp. (ONGC IN): India’s largest state- owned oil explorer said it discovered hydrocarbons in an on-land block in the Cauvery basin and an offshore area in the KG basin. The Press Trust of India separately reported the company plans to invest 88 billion rupees ($2 billion) to maintain production at its Mumbai High oil field, citing a company official it didn’t name. The stock retreated 1.1 percent to 1,340.35 rupees.

Reliance Industries Ltd. (RIL IN): India’s most valuable company has set aside 50 billion rupees to build malls and form ventures with global brands in the next two years, the Financial Chronicle reported, citing a person it didn’t name. The stock fell 1.8 percent to 1,040.35 rupees.

SKS Microfinance Ltd. (SKSM IN): The micro-finance lender was rated “underweight” in new coverage at JPMorgan, which cited concerns of “stretched valuations.” The brokerage has a share-price estimate of 1,000 rupees, according to a report by analysts including Seshadri K Sen. The shares plunged 6.6 percent to 1,135.9 rupees.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net.

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

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