EIH, Reliance Communications, Tata Steel: 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 27.1, or 0.2 percent, to 18,300.9. The S&P CNX Nifty Index on the National Stock Exchange was little changed at 5,481.70. The BSE 200 Index increased 0.2 percent to 2,255.98. SGX S&P CNX Nifty Index futures for February delivery fell 0.2 percent to 5,481 at 10:50 a.m. in Singapore.

Ahluwalia Contracts Ltd. (AHLU IN): The company that helped build housing for athletes in the New Delhi Commonwealth Games was downgraded to “neutral” from “overweight” by Rajeev Desai, an analyst at IFCI Financial Services LTd. The 12-month target price is 140 rupees per share. The shares fell 0.1 percent to 130 rupees.

Bharat Heavy Electricals Ltd. (BHEL IN): The biggest power- equipment maker was upgraded to “neutral” from “reduce” by Amar Kedia, an analyst at Nomura Holdings Inc., which said the share price has factored in concerns over the company’s long- term growth and margins. The stock slid 1.1 percent to 2,048.05 rupees.

EIH Ltd. (EIH IN): The operator of the Oberoi brand of hotels increased the offer price of its rights share sale by 1.5 percent, according to an e-mail sent yesterday to investors. EIH will raise about 11.79 billion rupees ($259 million) after increasing the sale price to 66 rupees from 65 rupees apiece. The shares advanced 2.1 percent to 103.95 rupees.

Godrej Properties Ltd. (GPL IN): The real estate company was rated “sell” in new coverage at Goldman Sachs Group Inc. The brokerage has a share-price forecast of 527 rupees, according to a report by Puneet Jain and Aditya Soman. The shares advanced 0.2 percent to 601.35 rupees.

Idea Cellular Ltd. (IDEA IN): Top executives of the company may face questioning by India’s Central Bureau of Investigation in a probe into the award of mobile-phone licenses, the Press Trust of India reported, without saying where it obtained the information. The shares advanced 1.9 percent to 63.2 rupees.

Indiabulls Real Estate Ltd. (IBREL IN): The developer was lowered to “neutral” from “buy” by Puneet Jain and Aditya Soman, analysts at Goldman Sachs Group Inc., which cited “limited visibility” on the use of the company’s cash. The shares added 2.2 percent to 117.75 rupees.

Jaypee Infratech Ltd. (JPIN IN): The unit of India’s biggest builder of dams was rated “neutral” in new coverage at Goldman Sachs Group Inc. The brokerage has a share-price estimate of 78 rupees. The shares added 0.6 percent to 60.1 rupees.

Mahindra & Mahindra Ltd. (MM IN): India’s biggest sport- utility vehicle maker said production of its Stallio motorcycles was affected by a shortage of “certain critical components,” in an e-mailed statement yesterday. The shares declined 1.8 percent to 655.8 rupees.

Oberoi Realty Ltd. (OBER IN): The developer was rated “buy” in new coverage at Goldman Sachs Group Inc. The brokerage has a share-price forecast of 327 rupees, according to a report by Puneet Jain and Aditya Soman. The stock rose 2.8 percent to 234.05 rupees.

Prestige Estates Projects Ltd. (PEPL IN): The developer was rated “neutral” in new coverage at Goldman Sachs Group Inc. The brokerage has a share-price forecast of 169 rupees. The shares slid 2.8 percent to 125.45 rupees.

Reliance Communications Ltd. (RCOM IN): Anil Ambani, the billionaire chairman of Reliance Communications Ltd., was questioned by Indian federal investigators yesterday for about two hours amid a widening probe into the award of mobile-phone licenses in 2008. The meeting was part of Ambani’s “weekly visit” to Delhi, an e-mailed statement from his group spokesman said yesterday.

Separately, the company raised its stake in the mobile phone operator to 67.9 percent after acquiring 7.39 million shares, or 0.4 percent, according to a filing on the Bombay Stock Exchange. The shares slid 1.9 percent to 99.60 rupees.

Reliance Industries Ltd. (RIL IN): India’s most valuable company plans to invest as much as $30 billion over the next five years on its businesses, the Press Trust of India said, citing a presentation made by the company at an investor conference hosted by Bank of America last week. The shares advanced 0.3 percent to 944.15 rupees.

Sobha Developers Ltd. (SOBHA IN): The real estate developer was upgraded to “buy” from “neutral” by Puneet Jain and Aditya Soman, analysts at Goldman Sachs Group Inc., saying expansion into new cities will drive volumes and revenue growth. The shares climbed 0.2 percent to 242.05 rupees.

Steel Authority of India Ltd. (SAIL IN): The nation’s second-largest producer may build a 150 billion rupee plant in Mongolia, Press Trust of India said, citing an interview with company Chairman C.S. Verma. The shares advanced 0.3 percent to 162.95 rupees.

Tata Steel Ltd. (TATA IN): India’s biggest producer of the alloy was downgraded to “accumulate” from “buy” at VCK Share & Stock Broking Services Ltd. by equity analyst Debanshu Patra. The 12-month target price is 700 rupees per share. The shares advanced 4 percent to 641.4 rupees.

Tech Mahindra Ltd. (TECHM IN): BT Group Plc may sell about half of its 24.49 percent stake in Tech Mahindra Ltd., an Indian software company, this year, the Wall Street Journal reported yesterday, citing an unidentified person familiar with the matter. Tech Mahindra is a joint venture between Mahindra & Mahindra Ltd. and BT. The shares rose 0.9 percent to 641.15 rupees.

United Bank of India (UNTDB IN): The state-controlled bank said the government plans an equity infusion of 3.08 billion rupees through a preferential allotment, according to a statement on the Bombay Stock Exchange. The shares advanced 1.4 percent to 96.6 rupees.

UCO Bank (UCO IN): The state-controlled bank said the government plans to invest 9.4 billion rupees as Tier I capital through a preferential allotment of equity, according to a statement to the Bombay Stock Exchange. The shares rose 0.2 percent to 104.65 rupees.

To contact the reporter on this story: Tushar Dhara in New Delhi at tdhara1@bloomberg.net; Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net.

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

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