Sensex Changes, Axis, ONGC, Reliance, TCS: India Stocks Preview

The following companies may have unusual price changes in India trading. Stock symbols are in parentheses and prices are as of the last close.

The Bombay Stock Exchange Sensitive Index, or Sensex, lost 0.6 percent to 17,870.53, completing its second weekly decline. The S&P CNX Nifty Index on the National Stock Exchange of India Ltd. slid 0.6 percent to 5,366.40. The BSE200 Index dropped 0.7 percent to 2,225.66. SGX S&P CNX Nifty Index futures for June delivery rose 0.1 percent to 5,376 as of 11:10 a.m. in Singapore.

Sensex changes: Coal India Ltd. (COAL) and Sun Pharmaceutical Industries Ltd. (SUNP) will replace Anil Ambani Group companies Reliance Infrastructure Ltd. (RELI) and Reliance Communications Ltd. (RCOM) on the benchmark gauge from Aug. 8, according to an e-mailed statement from the Bombay Stock Exchange on June 17.

Coal India advanced 0.3 percent to 395.6 rupees while Sun Pharmaceutical sank 3.3 percent to 477.75 rupees. Reliance Infrastructure gained 1.1 percent to 580.8 rupees while Reliance Communications climbed 1.6 percent to 95.2 rupees.

Axis Bank Ltd. (AXSB) : The nation’s third-biggest private lender approved raising funds through private placement of debt in one or more stages, according to a June 17 exchange filing. The stock added 0.4 percent to 1,222.55 rupees.

Bharat Heavy Electricals Ltd. (BHEL) : The nation’s largest power-equipment maker will hire 25,000 people over the next five years to take its headcount to 55,000, Press Trust of India reported June 19, citing Chairman B. Prasada Rao.

“We have already hired 15,000 people in the past four years and we aim to recruit 5,000 people every year for the next five years,” the report quoted Rao as saying. The stock was little changed at 1,937.2 rupees.

Cadila Healthcare Ltd. (CDH) : A unit of the Indian drugmaker agreed to acquire the assets of U.S.-based Nesher Pharmaceuticals Inc., a unit of KV Pharmaceutical Co., according to a June 17 statement to the Bombay Stock Exchange. Shares fell 1.2 percent to 899.8 rupees.

Cox & Kings Ltd. (COXK) : The tour operator is in talks to acquire a company in Europe and has sought permission from India’s Foreign Investment Promotion Board to make the investment, DNA Money reported June 18, citing a person it didn’t name.

The Indian travel company is “always on the lookout for acquisitions,” the newspaper quoted Chief Financial Officer Anil Khandelwal as saying. Shares plunged 5.3 percent to 385.45 rupees.

Fortis Healthcare India Ltd. (FORH IN): The hospitals operator is planning to invest 6 billion rupees ($134 million) to add 1,000 beds in the Indian state of West Bengal, Managing Director Shivinder Mohan Singh told reporters on the sidelines of a state government event in Kolkata on June 18.

“We have already invested 3 billion rupees in the state for putting up 500 beds,” Singh said. He didn’t say when the company will make the investment. The stock slid 0.4 percent to 159.35 rupees.

Max India Ltd. (MAX) : The life-insurance provider approved the acquisition of Warburg Pincus’s 16 percent stake in Max Healthcare Institute Ltd. for 1.4 billion rupees, it said in an exchange filing June 17. The stock advanced 0.4 percent to 177.65 rupees.

National Aluminium Co. (NACL IN): The company cut prices on all products, save one, by 5,000 rupees a metric ton starting June 17, according to an e-mailed statement. Shares declined 1.8 percent to 87.2 rupees.

Oil & Natural Gas Corp. (ONGC IN): India’s government has approved the merger of the company’s assets in Russia with Bashneft and RussNeft, the Economic Times newspaper reported without saying from where it obtained the information. Oil & Natural, India’s largest state-owned oil explorer, slid 1.2 percent to 265.8 rupees.

PSL Ltd. (PSLL IN): The Indian pipemaker is planning to enter the port construction business and may invest as much as 5 billion rupees on building a jetty at the Kandla Port in Gujarat state, the Economic Times reported June 18, citing Managing Director Ashok Punj.

On June 19, the Press Trust of India cited Punj as saying the company’s plans to develop a special economic zone in Gujarat state may get delayed. The stock fell 2.6 percent to 71.45 rupees.

Reliance Industries Ltd. (RIL) : The Mukesh Ambani-run company, India’s biggest by market value, plans to drill three wells in the KG-D6 block to increase gas production, the Hindu Business Line reported June 19, citing unidentified people. Shares declined 2.1 percent to 868.75 rupees, the lowest since April 2009.

Reliance Power Ltd. (RPWR) : The Anil Ambani Group company’s 4,000-megawatt power project in Krishnapatnam in Andhra Pradesh state faces roadblocks partly because of new Indonesian laws requiring coal to be sold at market prices, the Press Trust of India reported, without saying where it got the information.

Indonesian coal mines previously had the freedom to reach bilateral agreements on coal prices with buyers, the report said. Other issues affecting the project include soil quality and land disputes, the report said. Shares retreated 0.2 percent to 115.35 rupees.

SpiceJet Ltd. (SJET) : Indian billionaire Kalanithi Maran’s KAL Airways Pvt. pledged 20.7 million additional shares in SpiceJet, the nation’s only listed low-cost carrier, on June 3, according to an exchange filing on June 17.

KAL has now pledged 90.97 million shares, or 58.12 percent of its total holding in the airline, according to SpiceJet. The shares dropped 3.3 percent to 32.75 rupees.

Tata Consultancy Services Ltd. (TCS) : The nation’s largest software services provider has been ordered to pay 6.56 billion rupees in taxes for the assessment year 2007-2008 after India’s income-tax office disallowed some of its claims, the Financial Express reported June 18, citing unidentified sources.

The tax office disallowed TCS’ claims on items including state taxes paid overseas and software expenses claimed as revenue expenditure, the newspaper reported. Shares tumbled 3.6 percent to 1,109.2 rupees.

Welspun Corp. (WLCO IN): The pipemaker’s unit, Welspun Infratech, may raise $100 million through a private placement to fund projects, DNA Money reported June 18, citing the unit’s managing director Parvez Umrigar. Welspun’s shares slid 0.3 percent to 166.2 rupees.

To contact the reporter on this story: Shikhar Balwani in Mumbai at sbalwani@bloomberg.net;

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

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