Lupin, Monnet Ispat, Tulip, Wipro, Hindustan Copper: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, rose 143.51, or 0.8 percent, to 18,287.50. The S&P CNX Nifty Index on the National Stock Exchange advanced 0.9 percent to 5,486.15. The BSE 200 Index increased 0.9 percent to 2,331.80. The SGX S&P CNX Nifty Index futures for August delivery fell less than 0.1 percent to 5,477 at 10:40 a.m. in Singapore.
State-run companies: India exempted state-run companies from a rule requiring at least 25 percent of shares to be traded, according to D.S. Malik, a spokesman at the finance ministry. The government companies must have a minimum 10 percent public holding within three years, he said. NMDC Ltd. (NMDC IN), Asia’s third-largest iron ore producer, lost 0.4 percent to 267.95 rupees, Hindustan Copper Ltd. (HCP IN), the nation’s monopoly producer of the metal ore, gained 1 percent to 461.6 rupees and NTPC Ltd. (NATP IN), the biggest power producer, climbed 1.2 percent to 199.5 rupees.
Consumer stocks: Investors should “book profits” on consumer stocks as the industry may underperform given their valuations, rising input prices and a “highly competitive landscape,” Nomura Holdings Inc. said.
Hindustan Unilever Ltd. (HUVR IN) and Titan Industries Ltd. (TTAN IN) are the top “reduce” recommendations within the industry, Nomura analysts Manish Jain and Anup Sudhendranath wrote in a report today. Hindustan Unilever climbed 0.4 percent to 256.05 rupees. Titan added 0.4 percent to 2,818 rupees.
Telecom shares: India’s Home Ministry asked the department of telecommunications to stop operations of all third-generation mobile services until the infrastructure for tapping is put in place, the Business Standard reported, without saying from where it got the information. Bharti Airtel Ltd. (BHARTI IN) increased 1.6 percent to 328.4 rupees. Reliance Communications Ltd. gained 2.6 percent to 177.25 rupees.
Lupin Ltd. (LPC IN): A unit of the drugmaker sued Ranbaxy Laboratories Ltd. (RBXY IN) for infringing a U.S. patent for Antara capsules, used to treat high cholesterol levels. Lupin advanced 0.3 percent to 1,896.35 rupees. Ranbaxy shares increased 0.2 percent to 449.1 rupees.
Mahindra & Mahindra Ltd. (MM IN): India’s largest maker of sport-utility vehicles and tractors may make a bid of around $480 million for South Korea’s Ssangyong Motor Co., the Economic Times said, citing unidentified people familiar with the matter. The Indian company may offer to pay $150 million in shares and offer about $330 million to pay off the debts of Ssangyong, according to the report. Mahindra advanced 0.1 percent to 649.3 rupees.
Monnet Ispat Ltd. (MISP IN): The sponge-iron maker formed a venture with iron ore producer NMDC Ltd. to bid for coal mines in India with reserves of as much as 300 million tons, according to a company statement on the Bombay Stock Exchange. The shares jumped 3.3 percent to 474.85 rupees.
Reliance Broadcast Network Ltd. (RBN IN): The media and entertainment company controlled by billionaire Anil Ambani plans to raise $100 million via the preferential sale of shares to fund its expansion of FM radio, the Financial Express reported, citing Chief Executive Officer Tarun Katial. The stock rose 5 percent to 70 rupees.
Tulip Telecom Ltd. (TTSL IN): The wireless service provider’s board approved raising as much as 10 billion rupees ($217 million) selling securities, including shares and bonds, the company said in a statement to the Bombay Stock Exchange. The shares advanced 0.2 percent to 182.05 rupees.
Wipro Ltd. (WPRO IN): India’s Foreign Investment Promotion Board approved a proposal by Wipro Ltd. to “undertake additional activity relating to defense sector,” the government said on its website yesterday, without elaborating. The shares climbed 0.9 percent to 436.95 rupees.