Reliance, Jain Irrigation, JK Lakshmi: 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 209.80, or 1.1 percent, to 19,092.05. The S&P CNX Nifty Index on the National Stock Exchange advanced 1.2 percent to 5,724.05. The BSE 200 Index increased 1 percent to 2,357.72. SGX CNX Nifty Index futures for January delivery fell 0.3 percent to 5,723.5 at 10:44 a.m. in Singapore.

Indian steel producers: Tata Steel Ltd. (TATA IN) and JSW Steel Ltd. (JSTL IN) are among 22 companies that have expressed formal interest in bidding to develop Afghanistan’s largest iron deposit at Hajigak, west of Kabul, the country’s mines ministry said in an e-mailed statement yesterday. Tata Steel rose 1.1 percent to 632.6 rupees, and shares of JSW Steel gained 4.1 percent to 1,015.45 rupees.

Hindustan Construction Ltd. (HCC IN): India’s environment ministry reiterated its so-called stop work order on the engineering company’s unit Lavasa Corp., which is developing a hill station near the western city of Pune. The government may reconsider its decision after Lavasa pays a “substantial penalty” and creates an environment restoration fund, the ministry said on its website yesterday. The shares retreated 4.1 percent to 39.8 rupees.

Jain Irrigation Systems Ltd. (JI IN): The world’s second- biggest irrigation-equipment maker expects its micro-irrigation systems business to expand by more than 40 percent annually, DNA newspaper said, citing Managing Director Anil B. Jain. Growth in its food processing business may slow to slow as little as 15 percent from as much as 30 percent in the past five years, the report said. The stock gained 2.2 percent to 226.5 rupees.

JK Lakshmi Cement Ltd. (JKLC IN): The maker of the construction material gave FLSmidth & Co. A/S a contract to supply a pyro-processing system for its cement plant in Durg, Chhattisgarh in Central India, the Valby, Denmark-based company said yesterday in an e-mail. The shares rose 0.8 percent to 51.55 rupees.

Oil & Natural Gas Corp. (ONGC IN): Angolan Oil Minister Jose Maria Botelho de Vasconcelos said yesterday that talks are continuing to allow India’s biggest explorer to buy Exxon Mobil Corp.’s 25 percent stake in the country’s Block 31.

Separately, ONGC’s discount on crude oil sold to state-run refiners increased 21 percent to 42.2 billion rupees ($928 million) in the three months ended Dec. 31, Press Trust of India reported, citing an unidentified person. ONGC Chairman R.S. Sharma didn’t answer calls to his mobile phone seeking comment. The shares were little changed at 1,170.45 rupees.

Petronet LNG Ltd. (PLNG IN): India’s largest liquefied natural gas importer had a third-quarter profit of 1.71 billion rupees, according to a statement on the Bombay Stock Exchange yesterday. The shares advanced 2.4 percent to 129.9 rupees.

Reliance Industries Ltd. (RIL IN): The largest Indian company by market value had its stock rating raised to “outperform” by Sanford C. Bernstein & Co., which cited improving refinery and petrochemical margins. Bernstein set its price estimate for Reliance at 1,250 rupees. The stock declined 0.3 percent to 994.85 rupees.

Rural Electrification Corp. (RECL IN): India’s state- controlled lender to power projects will sell $500 million of five-year bonds, according to two people with knowledge of the sale. The shares gained 0.9 percent to 263.3 rupees.

Steel Authority of India Ltd. (SAIL IN): The nation’s second-biggest producer of steel was raised to “neutral” from “underperform” by Rakesh Arora, an analyst at Macquarie Research, with a 12-month price estimate of 173 rupees per share. The stock rose 3.1 percent to 162 rupees.

Tulip Telecom Ltd. (TTSL IN): The wireless service provider may sell as much as 30 percent of its Tulip Data Center unit, raising as much as 3 billion rupees, the Economic Times reported, citing Chief Executive Officer Sanjay Jain. The stock advanced 2 percent to 168.55 rupees.

To contact the reporters on this story: Ketaki Gokhale in Mumbai kgokhale@bloomberg.net; Shikhar Balwani in Mumbai at sbalwani@bloomberg.net;

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.