Shipping, Apollo Hospitals, Bharti, Opto Circuits: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, fell 68.02, or 0.3 percent, to 20,407.71. The S&P CNX Nifty Index on the National Stock Exchange declined 0.2 percent to 6,145.8. The BSE 200 Index was little changed at 2,591.54. SGX S&P CNX Nifty Index futures for October delivery rose 0.7 percent to 6,219 at 10:44 a.m. in Singapore.
Infrastructure stocks: India is considering a proposal to ease regulations for companies borrowing abroad to fund infrastructure projects, the Economic Times reported, without saying where it got the information. Larsen & Toubro Ltd. (LT IN), the largest engineering company, lost 0.7 percent to 2,053.35 rupees. Reliance Infrastructure Ltd. (RELI IN), the builder of a mass rapid transit system in Mumbai, advanced 2.9 percent to 1,114.05 rupees.
Banking shares: Axis Bank Ltd. (AXSB IN): India’s fourth- largest lender and HDFC Bank Ltd. (HDFCB IN), the third-biggest, had their ratings lowered at UBS AG, which cited the valuations for the Indian banking and financial industry. Axis Bank was cut to “neutral” from “buy” and HDFC Bank was reduced to “sell” from “neutral,” according to a report by Vishal Goyal. The analyst raised Union Bank of India’s (UNBK IN) rating to “neutral” from “sell.” Axis Bank declined 0.1 percent to 1,575.3 rupees. HDFC Bank fell 1.9 percent 2,447.8 rupees. Union Bank climbed 0.3 percent to 398.2 rupees.
Cement producers: Shree Cement Ltd. (SRCM IN) and Grasim Industries Ltd. (GRASIM IN) were raised to “neutral” from “reduce” at Nomura Holdings Inc., which cited the stocks’ valuations. The brokerage raised its share-price estimate for Shree Cement to 2,044 rupees from 1,829 rupees and lowered its price forecast for Grasim Industries to 2,181 rupees from 2,480 rupees, according to a report by Jamil Ansari. Shree Cement decreased 1.4 percent to 2,070.45 rupees. Grasim retreated 0.2 percent to 2,303.9 rupees.
Apollo Hospitals Enterprise Ltd. (APHS IN): India’s biggest health-care provider was rated “overweight” in new coverage by Princy Singh, an analyst at JPMorgan Chase & Co., with a price estimate of 575 rupees per share. The stock decreased 0.3 percent to 463.15 rupees.
Bharti Airtel Ltd. (BHARTI IN): India’s largest mobile- phone company has been directed by Zambia’s Securities and Exchange Commission to undertake an independent valuation of Celtel Zambia to ascertain the share price at which Bharti acquired control of the company, Munakupya Hantuba, the chairman of the commission, told reporters yesterday in Lusaka, the capital. The shares declined 1.7 percent to 353.65 rupees.
Career Point Infosystems Ltd. (CRPT IN): The tutorial provider will list on exchanges today. It received demand for 45.8 times the shares on offer in an initial sale last month. The company received bids for 146.9 million shares, compared with 3.21 million shares offered in the sale.
Eros International Media Ltd. (EROS IN): The distributor of movies and music commences trading in Mumbai today.
Gujarat Mineral Development Corp. (GMDC IN): Vedanta Resources Plc won a contract from India’s western Gujarat state to mine 570,000 tons of bauxite, the Economic Times reported, citing Gujarat Mineral managing director V.S. Gadhvi. Vedanta, bid for the contract at 648 rupees ($14.5) per ton of the ore, may start mining in 10 months, according to the report. Gujarat Mineral climbed 0.7 percent to 135.55 rupees.
Opto Circuits India Ltd. (OPTC IN): India’s largest domestic medical equipment maker was rated “overweight” in new coverage by JPMorgan’s Singh, with a price estimate of 350 rupees per share. The stock increased 1 percent to 304.9 rupees.
Shipping Corporation of India Ltd. (SCI IN): India’s biggest marine transport company’s plan to sell 10 percent equity in itself to raise 13 billion rupees was approved by India’s Cabinet, according to a government statement yesterday. The shares rose 0.5 percent to 168 rupees.
SKS Microfinance Ltd. (SKSM IN): The lender was rated “hold” in new coverage at Citigroup Inc. The brokerage has a share-price estimate of 1,435 rupees, according to a report by analysts including Manish Chowdhary. The stock fell 1.5 percent to 1,260.35 rupees.
State Trading Corporation of India Ltd. (STC IN): India’s second-biggest government-owned trading company issued a tender seeking to import 12 million metric tons of coal for NTPC Ltd. during 2011-2013, according to a posting yesterday on a government website. Bids are invited by Nov. 8, according to the tender. The shares advanced 0.1 percent to 403.45 rupees.