GMR Infra, ICICI, Bharti, Dr. Reddy's, Suzlon Energy: India Stocks Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, was little changed at 18,048.85. The S&P CNX Nifty Index on the National Stock Exchange declined 0.1 percent to 5,414.15. The BSE 200 Index rose 0.1 percent to 2,314.11. SGX CNX Nifty Index futures for August delivery rose 0.1 to 5435.0 at 10:27 a.m. in Singapore.
Mobile Phone Companies: Mobile-phone users rose 2.5 percent in July to 468.1 million from the previous month, the Cellular Operators Association of India said in an e-mailed statement. The country added 11.5 million GSM mobile subscribers last month, it said. Bharti Airtel Ltd. (BHARTI IN), the largest mobile- phone operator, lost 0.8 percent to 316.10 rupees, while Idea Cellular Ltd. (IDEA IN) fell 1.5 percent to 71.05 rupees.
Oil Refinery: State-owned oil refiners may lose 530 billion rupees ($11.4 billion) in sales from selling fuel below cost in the year through March, junior oil minister Jitin Prasada said yesterday in parliament. Indian Oil Corp. (IOCL IN), the country’s biggest state refiner, rose 1.3 percent to 386.55 rupees. Hindustan Petroleum Corp. (HPCL IN) gained 3.1 percent to 496.65 rupees, while Bharat Petroleum Corp. (BPCL IN) increased 2.3 percent to 673.2 rupees.
Dr. Reddy’s Laboratories Ltd. (DRRD IN): The nation’s second-biggest drugmaker is in talks with three Japanese drugmakers to buy a stake, the ET Now television channel reported, without saying where it got the information. The three Japanese companies are Towa Pharmaceutical Co., Sawai Pharmaceutical Co. and Fuji Pharma Co., the station said. Dr. Reddy’s fell 1.8 percent to 1,330.15 rupees.
GMR Infrastructure Ltd. (GMRI IN): The infrastructure company is in advanced negotiations to sell a 50 percent stake in power utility InterGen NV to China Huaneng Group, for about $1.2 billion, according to two people with knowledge of the matter who declined to be identified because the talks aren’t public. The stock dropped 2 percent to 59.95 rupees.
ICICI Bank Ltd. (ICICIBC IN): India’s second-largest lender was raised to “buy” from “neutral” by Tabassum Inamdar and other analysts at Goldman Sachs Group Inc., who said ICICI is “better poised to surprise from here on” and increased the share-price estimate by 15 percent to 1,085 rupees. The shares gained 0.2 percent to 958.9 rupees.
India Steel Works Ltd. (ISI IN): The maker of billets and hot rolled bars sold a 10 percent stake to Dubai-based ANC Holdings LLc for 190 million rupees ($4.1 million), the Economic Times reported, citing Mahesh K Sheregar, an ANC director. India Steel declined 2 percent to 5 rupees.
Indiabulls Financial Services Ltd. (IBULL IN): The Reliance-Anil Dhirubhai Ambani Group is close to acquiring a 26 percent stake in the Indian Commodity Exchange Ltd. from the financial services provider, the Business Standard reported, citing four people it didn’t identify. The stock lost 3.2 percent to 152.55 rupees.
MMTC Ltd. (MMTC IN): The government may sell a 10 percent stake in the nation’s biggest state-run trader before the end of the year ending March 31, Hindu Business Line reported, citing Commerce Secretary Rahul Khullar. The stock lost 1 percent to 1,390.25 rupees.
Nestle India Ltd. (NEST IN): The unit of the world’s biggest foodmaker was raised to “buy” from “reduce” by Manish Jain and Anup Sudhendranath, analysts at Nomura Holdings Inc., who said profitability is likely to improve as milk prices start to ease. The analysts raised their share-price estimate to 3,230 rupees from 2,366 rupees. Nestle dropped 1.3 percent to 2,727.15
State Bank of India (SBIN): The nation’s largest lender was cut to “sell” from “neutral” by Inamdar and other analysts at Goldman. The stock declined 0.1 percent to 2,818.45 rupees.
State Bank of Mysore Ltd. (SBMS IN): The state-owned lender will raise its prime lending rate by 50 basis points from Aug. 18, it said in a statement today. The shares rose 5.6 percent to 836.40 rupees.
Suzlon Energy Ltd. (SUEL IN): India’s biggest maker of wind turbines was downgraded to “underweight” from “neutral” by Shilpa Krishnan, an analyst at JPMorgan Chase & Co., with a nine-month price estimate of 41 rupees per share. The stock lost 2.3 percent to 51.15 rupees.