Hindalco, Bank of Baroda, Bharti Airtel: 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, rose 266.53, or 1.4 percent, to 19,508.89. The S&P CNX Nifty Index on the National Stock Exchange advanced 1.6 percent to 5,857.35. The BSE 200 Index increased 1.6 percent to 2,423.94.

Andhra Bank (ANDB IN): The state-run lender will increase the base rate by 50 basis points to 9 percent from Dec. 13, the bank said in an e-mailed statement on Dec. 11. It also increased the prime lending rate by 25 basis points to 13 percent. The shares rose 3.4 percent to 146.85 rupees.

Bank of Baroda (BOB IN) The Indian state-run lender will increase its prime lending rate by 75 basis points to 13.25 percent effective Dec. 13, the bank said in an e-mailed statement on Dec. 11. The shares fell 0.03 percent to 880.05 rupees.

Bharti Airtel Ltd. (BHARTI IN): The nation’s largest mobile-phone operator plans to invest $400 million in the Democratic Republic of Congo over the next three years to extend and improve the Central African country’s phone network, according to a company statement. Bharti fell 2.2 percent to 331 rupees.

Hindalco Industries Ltd (HNDL IN): Novelis Inc., the Atlanta-based aluminum unit of India’s Hindalco Industries, sold $2.5 billion of bonds in the largest U.S. junk offering in two months. Proceeds from the sale will be used along with borrowings under a $1.5 billion secured bank loan to refinance debt and pay for a $1.7 billion distribution to Hindalco, Novelis said in a statement on Dec. 10. Hindalco’s shares rose 2.7 percent to 215.3 rupees.

Infrastructure Development Finance Co. (IDFC IN): The Indian state-run lender to power and road projects was rated new “buy” by Abhinesh Vijayaraj, an equity analyst at Tata Securities. The 12-month target price is 223 rupees per share. The shares rose 4.2 percent to 172.15 rupees.

ITC Ltd. (ITC IN): India’s largest cigarette maker will resume production only after the government clarifies its directions on pictorial warnings that must be printed by tobacco companies on packets, the Business Line reported, citing Chairman Y.C. Deveshwar. The company closed its plants Dec. 1, the paper said. The shares rose 1.8 percent to 170.3 rupees.

Power Finance Corp Ltd. (POWF IN): The state-owned lender to power projects was rated new “buy” by Abhinesh Vijayaraj, an equity analyst at Tata Securities. The 12-month target price is 376 rupees per share. The shares rose 2.6 percent to 304.85 rupees.

Rallis India Ltd. (RALI IN): The agrochemicals company belonging to the Tata group was raised to “buy” from “overweight” by Nitin Gosar, an analyst at IFCI Financial Services, with a 12-month share-price estimate of 1,582 rupees. The shares rose 0.6 percent to 1,288.95.

Rural Electrification Corp Ltd. (RECL IN): The state- controlled lender to power projects was rated new “buy” by Abhinesh Vijayaraj, an equity analyst at Tata Securities. The 12-month target price is 386 rupees per share. The shares rose 2.5 percent to 304.15.

Wipro Ltd. (WPRO IN): India’s third-largest software exporter was downgraded to “underperform” from “outperform” by Moshe Katri, an equity analyst at Cowen. Separately, the company said in a statement it won a five-year outsourcing contract from south India-based Vasan Eye Care. Wipro gained 3.2 percent to 450.95 rupees.

Telecom companies: The Telecom Regulatory Authority of India, the telecommunications regulator, has recommended scrapping 38 airwave permits held by companies including Aircel Ltd., Dishnet Wireless Ltd., Etisalat DB Telecom Pvt., and Unitech Wireless Pvt. The regulator has also suggested “legal examination” of 31 licenses given to Aircel, Allianz Infratech (P) Ltd., Etisalat, Loop Telecom Ltd., Sistema Shyam Teleservices Ltd. and Videocon Telecommunications Ltd., Sachin Pilot, junior telecommunications minister, said in a statement to parliament on Dec. 10 and posted on the government’s website. Unitech (UT IN) gained 3.6 percent to 63.15 rupees, Videocon Industries (VCLF IN) rose 7.1 percent to 212.95 rupees.

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To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net

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