Cairn, Patni Computer, Union Bank, Cummins, ONGC: 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’s Sensitive Index, or Sensex, fell 64.33, or 0.3 percent, to 19,941.04. The S&P CNX Nifty Index on the National Stock Exchange lost 0.4 percent to 5,987.70. The BSE 200 Index retreated 0.5 percent to 2,538.77. SGX S&P CNX Nifty Index futures for November delivery dropped 0.8 percent to 6,024 as of 10:49 a.m. in Singapore.

Cairn India Ltd. (CAIR IN): The producer of crude oil from the nation’s biggest onshore field tripled profit to a record 15.9 billion rupees ($357 million) in the three months ended Sept. 30 after boosting output and prices to meet rising demand. The shares fell 1.4 percent to 317.3 rupees.

Cummins India Ltd. (KKC IN): the maker of diesel truck engines and generators was raised to “buy” from “hold” at Religare Capital Markets by equity analyst Misal Singh. The 12- month target price is 950 rupees per share. The shares rose 5.3 percent to 777.15 rupees.

Grasim Industries Ltd. (GRASIM IN): The building material producer was raised to “buy” from “sell” at Citigroup Inc. to reflect the stock’s “cheap” valuations. The stock increased 1.1 percent to 2,278.9 rupees.

Gujarat State Petronet Ltd. (GUJS IN): The state-run gas transporter was downgraded to “hold” from “buy” at Religare Capital Markets by equity analyst Ballabh Modani. The 12-month target price is 125 rupees per share. The stock fell 4.7 percent to 112.55 rupees.

IDBI Bank Ltd. (IDBI IN): The state-owned lender will raise funds worth $125 million for three years at Libor plus 180 basis points under its medium term note program in November, DNA reported, citing the company’s chairman R.M. Malla. The funds will be used to support foreign currency loans, it said, citing Malla. The stock gained 1.6 percent to 180.15 rupees.

Mahindra & Mahindra Ltd. (MM IN): South Korea’s Fair Trade Commission approved Mahindra’s purchase of Ssangyong Motor Co., Edaily said, without citing anyone. Mahindra, India’s largest maker of sport-utility vehicles and tractors, climbed 0.6 percent to 733.05 rupees.

Oil & Natural Gas Corp. (ONGC IN): India’s biggest energy explorer posted its highest quarterly profit in more than two years after rising demand boosted energy prices. Net income rose 6 percent to 53.9 billion rupees in the three months ended Sept. 30 from 50.9 billion rupees a year earlier, according to a statement sent to the Bombay Stock Exchange. The shares climbed 0.4 percent to 1,303.85 rupees.

Patni Computer Systems Ltd. (PATNI IN): The software developer was downgraded to “sell” from “hold” at JM Financial Institutional Securities by equity analyst Govind Agarwal. The target price is 400 rupees per share. The stock fell 1.6 percent to 456.5 rupees.

Tata Consultancy Services Ltd. (TCS IN): The largest software services exporter says it’s banking on President Barack Obama’s visit to India next week to ease concern over increased U.S. visa costs and protectionism toward software-services companies. A bill passed by the U.S. Senate in August increased visa costs, Natarajan Chandrasekaran, chief executive officer of Tata Consultancy, said yesterday. Tata climbed 0.5 percent to 1,052.9 rupees.

Tata Global Beverages Ltd. (TGBL IN): The Indian owner of Tetley Tea and PepsiCo India Holdings Pvt. signed an agreement to form an equal venture, according to a statement to the Bombay Stock Exchange. The shares climbed 1.3 percent at 128.95 rupees.

Tulip Telecom Ltd. (TTSL IN): Qualcomm Inc.’s proposed exit from its India broadband venture may prompt one of the venture partners to sell its investment, the Financial Chronicle reported, citing an unidentified official. Tulip, which holds a 13 percent stake, is likely to sell out once Qualcomm, which holds the majority 74 percent stake in the joint venture, exits, the newspaper reported. The Indian wireless service provider sank 5 percent to 177 rupees.

Union Bank of India (UNBK IN): The state-run lender was downgraded to “hold” from “buy” at Deutsche Bank AG by equity analyst Manish Shukla. The 12-month target price is 385 rupees per share. The stock sank 3.4 percent to 379.55 rupees.

To contact the reporters on this story: Unni Krishnan in New Delhi at ukrishnan2@bloomberg.net; Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net

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

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