Havells, Hindustan Copper, Reliance, Sesa: 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 116.15, or 0.6 percent, to 19,521.25. The S&P CNX Nifty Index on the National Stock Exchange advanced 0.6 percent to 5,862.70. The BSE 200 Index increased 1 percent to 2,451.45. SGX S&P CNX Nifty Index futures for December fell 0.2 percent to 5,879.5 as of 11:10 a.m. in Singapore.

State-run banks: India may raise its share holding in nine state banks including Punjab National Bank Ltd. (PNB IN), Bank of Baroda (BOB IN) and Corporation Bank (CRPBK IN)to 58 percent, the Indian Express reported, citing a government document. Punjab National advanced 3.6 percent to 1,218.6 rupees, Bank of Baroda rose 2.9 percent to 937.25 rupees and Corporation Bank gained 2.8 percent to 708.95 rupees.

Electricity producers: India’s power ministry has issued notices to electricity producers JSW Energy Ltd. (JSW IN) and Sterlite Energy Ltd. asking them to explain why the government shouldn’t cancel coal supplies for their projects in the state of Rajasthan and Orissa respectively, Mint reported, citing a power ministry official it didn’t identify. JSW Energy shares rose 3.7 percent to 100.4 rupees.

Havells India Ltd. (HAVL IN): The maker of power- distribution equipment was raised to “outperform” from “neutral” at Credit Suisse Group AG, which cited the continued recovery at Sylvania, its European unit, and “potential deleveraging,” which will reduce risk. The brokerage increased the share-price estimate for the company to 455 rupees from 431 rupees, according to the report by analysts including Venugopal Garre. The stock rose 1.9 percent to 381.85 rupees.

Hindalco Industries Ltd. (HNDL IN): Novelis Inc., a unit of India’s biggest aluminum producer, said yesterday it intends to raise $4 billion in gross proceeds from one or more offerings of senior notes totaling $2.5 billion and a new $1.5 billion secured term loan facility. The shares gained 2.4 percent to 206.55 rupees.

Hindustan Construction Ltd. (HCC IN): Lavasa Corp., a unit of the construction and engineering company, filed a petition in the Bombay High Court challenging a notice issued by India’s environment ministry, it said in an e-mailed statement yesterday. The ministry had asked Lavasa to reply within 15 days whether it broke any rules while developing a hill resort in the state of Maharashtra. The shares advanced 8.8 percent to 43.45 rupees.

Hindustan Copper Ltd. (HCP IN): India is likely to delay selling its shares in the nation’s monopoly miner of the ore until January to avoid an overlap with public offers of state- owned companies Shipping Corp. of India and MOIL Ltd., Business Line reported, citing a mines ministry official it didn’t identify. The shares added 0.8 percent to 312.15 rupees.

Housing Development Finance Corp. (HDFC IN): The nation’s largest mortgage lender was raised to “neutral” from “reduce” at Nomura Holdings Inc. The brokerage increased its share-price estimate to 660 rupees from 394 rupees, according to a report by Mahrukh Adajania and Amit Nanavati. The shares declined 1.2 percent to 686.65 rupees.

JSW Steel Ltd. (JSTL IN): India’s third-largest producer of the alloy was raised to “buy” from “neutral” at Nomura Holdings, which said value has emerged after a decline in the shares over the past month. The brokerage reduced its share- price estimate for JSW Steel to 1,370 rupees from 1,486 rupees, according to a report by Alok Kumar Nemani and Prabhat Awasthi. Shares slid 0.4 percent to 1,127.9 rupees.

Phillips Carbon Black India Ltd. (PHCB IN): The maker of material used in tires and India’s Aditya Birla Group are among potential bidders to buy a unit of Germany’s Evonik Industries AG, three people with direct knowledge of the matter said yesterday. The shares retreated 0.2 percent to 174.6 rupees.

Power Finance Corp. (POWF IN): The state-owned lender to power projects may have a 20 percent follow-on public offer in April-May next year, if the Department of Disinvestment clears a proposal floated by the power ministry, the Mint newspaper reported, citing Department of Disinvestment secretary Sumit Bose. The shares jumped 6 percent to 336.75 rupees.

Reliance Industries Ltd. (RIL IN): India’s biggest company by market value cut natural gas production from its biggest field by as much as 12 percent in the last four months, a person with knowledge of the matter said. The shares declined 1.3 percent to 985.6 rupees.

Sesa Goa Ltd. (SESA IN): The unit of Vedanta Resources Plc will stop operations in Thakurani mine in the eastern Indian state of Orissa from today as the company couldn’t renew a third-party contract for the mine on “viable commercial terms,” according to a statement on the Bombay Stock Exchange yesterday. The shares declined 1.2 percent to 307.7 rupees.

To contact the reporters on this story: Thomas Kutty Abraham in Mumbai at tabraham4@bloomberg.net, Shikhar Balwani in Mumbai sbalwani@bloomberg.net.

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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