Reliance, ITC, Hero Honda, State Bank: 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, gained 91.30, or 0.5 percent, to 20,032.34. The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 percent to 6,017.70. The BSE 200 Index increased 0.1 percent to 2,541.85.

ABB Ltd. (ABB IN): The world’s biggest power-grid supplier is interested in providing the electrical equipment for Malaysia’s light rail transit extension project in the Klang Valley, the Edge Financial Daily reported, citing Paismanathan Govindasamy, a vice president at the Malaysian unit of the company. The stock lost 5.3 percent to 822.2 rupees.

Gujarat State Petronet Ltd. (GUJS IN): The state-run gas transporter was raised to “buy” from “hold” at JM Financial Institutional Securities by equity analyst Mehul Thanawala. The target price is 135 rupees per share. The shares were unchanged at 112.55 rupees.

Hero Honda Motors Ltd. (HH IN): The nation’s biggest two- wheeler maker said second-quarter profit fell 18 percent to 5.06 billion rupees ($114 million), according to a statement to the National Stock Exchange. Analysts surveyed by Bloomberg had estimated profit of 5.6 billion rupees on average. The shares fell 2.2 percent to 1,865.25 rupees.

IDBI Bank Ltd. (IDBI IN): The state-owned lender agreed to borrow $125 million under a three-year term loan arranged by BNP Paribas, Royal Bank of Scotland Group Plc, Standard Chartered Plc, Bank of Tokyo-Mitsubishi UFJ and United Overseas Bank Ltd., according to an e-mailed statement from the Mumbai-based company today. The stock advanced 0.3 percent to 180.6 rupees.

ITC Ltd. (ITC IN): Asia’s second-largest cigarette maker by market value increased profit 24 percent to a record 12.5 billion rupees in the three months to Sept. 30 as it sold more tobacco products, paper and soaps, the company said in a statement to the Bombay Stock Exchange. The shares climbed 2.5 percent to 171.20 rupees.

Jaiprakash Associates Ltd. (JPA IN): The builder of dams and power projects said in a statement second-quarter profit fell 87 percent to 1.16 billion rupees. The shares fell 1.3 percent to 120.25 rupees.

Maruti Suzuki India Ltd. (MSIL IN): The nation’s biggest carmaker boosted second-quarter profit 5 percent to 5.98 billion rupees in the three months ended Sept. 30 as India’s economic growth propelled record auto sales. Profit was in line with the 5.91 billion rupee average of 32 analyst estimates compiled by Bloomberg. The shares rose 1.1 percent to 1,551.6 rupees.

National Aluminium Co. (NACL IN): The nation’s second- biggest producer of the metal posted a 41 percent increase in profit to 2.24 billion rupees in the three months ended Sept. 30, aided by higher prices and production of the metal. The shares fell 2.8 percent to 401.3 rupees.

Nestle India Ltd. (NEST IN): The unit of the world’s largest food company reported a 20 percent increase in third- quarter profit to 2.19 billion rupees as domestic sales rose. The shares rose 0.6 percent to 3,484.45 rupees.

NTPC Ltd. (NATP IN): The Indian Railways will jointly build a power project with the nation’s biggest electricity producer in the eastern state of West Bengal. The project will comprise two units of 660 megawatts each, the railway ministry said on Oct. 30. It didn’t give any investment details. The shares rose 0.6 percent to 195.3 rupees.

Oil Refiners: India’s government will give the nation’s state-run oil refiners an additional subsidy of 30 billion rupees for the six months ended Sept. 30 for selling fuels below cost, Oil Secretary S. Sundareshan said on Oct. 30. Separately, a group including Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Petroleum Corp. is set to win contracts for three gas pipeline projects worth 180 billion rupees ($4 billion) in India, the Business Standard reported on Oct. 30, citing an official at the Petroleum and Natural Gas Regulatory Board. Indian Oil (IOCL IN), the nation’s biggest state-owned refiner, fell 0.7 percent to 418.05 rupees, Bharat Petroleum (BPCL IN) rose 1.4 percent to 730.05 rupees and Hindustan Petroleum (HPCL IN) was little changed at 487.3 rupees.

Piramal Healthcare Ltd. (PIHC IN): The drugmaker had its stock rating lowered to “neutral” from “buy” at Goldman Sachs Group Inc., which cited uncertainty over the use of the company’s cash after a recent share buy-back announcement. The stock gained 0.7 percent to 477.25 rupees.

Reliance Industries Ltd. (RIL IN): The nation’s biggest company by market value posted its highest quarterly profit since 2007 after growing fuel demand boosted refining earnings and natural gas production rose. Net income in the three months ended Sept. 30 rose 28 percent to 49.2 billion rupees, or 15.1 rupees a share, it said on Oct. 30.

Reliance Industries’s unit may borrow more money to develop shale gas assets in the U.S., Chief Financial Officer Alok Agarwal told reporters in a conference call. The shares rose 1.3 percent to 1,096.25 rupees.

Sonata Software ltd. (SSOF IN): Oracle Corp. and Wipro Infotech are considering buying stakes in India’s Sonata Software, Daily News & Analysis reported, citing unidentified people familiar with the situation. An unidentified spokesperson for Wipro said the report was “market speculation,” according to DNA. Oracle declined to comment, the report said. The stock surged 6.8 percent to 59.4 rupees.

State Bank of India (SBIN IN): The nation’s biggest state- owned lender expects to get government approval for its plan to raise 200 billion rupees through a rights offer in the next two months, the Press Trust of India reported, citing Chairman Om Prakash Bhatt. The shares dropped 1.2 percent to 3,150.6 rupees.

Steel Authority of India Ltd. (SAIL IN): The nation’s second-biggest steel producer was downgraded to “neutral” from “overweight” at HSBC by equity analyst Jigar Mistry. The target price is 205 rupees per share. The shares retreated 4.2 percent to 194.15 rupees.

Sun Pharmaceutical Industries Ltd. (SUNP IN): The nation’s biggest drugmaker by market value said second-quarter profit rose 12 percent to 5.04 billion rupees in the three months ended Sept. 30 on higher demand for generic medicines. Profit beat the 3.66 billion rupee average of 17 analyst estimates compiled by Bloomberg. The shares fell 0.4 percent to 2,110.05 rupees.

Suzlon Energy Ltd. (SUEL IN): The nation’s biggest maker of wind turbines posted a smaller-than-expected loss in the second quarter as increased domestic orders helped offset weak demand in Europe. The loss widened to 3.7 billion rupees from 3.6 billion rupees in the year-earlier period, the company said on Oct. 30. That beat the 4.3 billion-rupee average loss estimate of 11 analysts surveyed by Bloomberg News. The shares fell 2.8 percent to 55.45 rupees.

To contact the reporters on this story: Unni Krishnan in New Delhi at ukrishnan2@bloomberg.net; Pratik Parija in New Delhi at pparija@bloomberg.net

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

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