Indian Equities: IDBI, Sonata Software, Sun Pharmaceuticals
India’s Bombay Stock Exchange Sensitive Index, or Sensex, rose 278.63, or 1.4 percent, to 20,310.97 at 09:39 a.m. in Mumbai.
Gujarat State Petronet Ltd. (GUJS IN) gained 1.1 percent to 113.75 rupees. The state-run gas transporter was raised to “buy” from “hold” at JM Financial Institutional Securities by equity analyst Mehul Thanawala.
Hero Honda Motors Ltd. (HH IN) dropped 1.8 percent to 1,831.05 rupees. The nation’s biggest two-wheeler maker said second-quarter profit fell 18 percent to 5.06 billion rupees ($114 million). Analysts surveyed by Bloomberg had estimated profit of 5.6 billion rupees on average.
IDBI Bank Ltd. (IDBI IN) added 1.1 percent to 182.65 rupees. The state-owned lender agreed to borrow $125 million under a three-year term loan arranged by BNP Paribas, Royal Bank of Scotland Group Plc, Standard Chartered Plc, Bank of Tokyo- Mitsubishi UFJ and United Overseas Bank Ltd., according to an e- mailed statement from the Mumbai-based company today.
National Aluminium Co. (NACL IN) surged 1.8 percent to 408.6 rupees. The nation’s second-biggest producer of the metal posted a 41 percent increase in profit to 2.24 billion rupees in the three months ended Sept. 30, aided by higher prices and production of the metal.
Oil Refiners: Indian Oil Corp. (IOCL IN), the nation’s biggest state-owned refiner, rose 0.9 percent to 422 rupees. India’s government will give state-run oil refiners an additional subsidy of 30 billion rupees for the six months ended Sept. 30 for selling fuels below cost, Oil Secretary S. Sundareshan said on Oct. 30. Separately, a group including Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Petroleum Corp. is set to win contracts for three gas pipeline projects worth 180 billion rupees ($4 billion) in India, the Business Standard reported on Oct. 30, citing an official at the Petroleum and Natural Gas Regulatory Board. Bharat Petroleum (BPCL IN) gained 0.8 percent to 736 rupees and Hindustan Petroleum (HPCL IN) added 1.5 percent to 494.8 rupees.
Reliance Industries Ltd. (RIL IN) increased 1.5 percent to 1,112.9 rupees, set for its highest close in more than six months. The nation’s biggest company by market value posted its highest quarterly profit since 2007 after growing fuel demand boosted refining earnings and natural gas production rose. Net income in the three months ended Sept. 30 rose 28 percent to 49.2 billion rupees, it said on Oct. 30.
Sonata Software ltd. (SSOF IN) added 3.3 percent to 61.35 rupees. Oracle Corp. and Wipro Infotech are considering buying stakes in India’s Sonata Software, Daily News & Analysis reported, citing unidentified people familiar with the situation. An unidentified spokesperson for Wipro said the report was “market speculation,” according to DNA. Oracle declined to comment, the report said. Sonata Software’s Managing Director B. Ramaswamy couldn’t immediately be reached at his office telephone for comment on the report.
State Bank of India (SBIN IN) rose 1 percent to 3,183.1 rupees. The nation’s biggest state-owned lender expects to get government approval for its plan to raise 200 billion rupees through a rights offer in the next two months, the Press Trust of India reported, citing Chairman Om Prakash Bhatt. S.S. Ranjan, chief financial officer at State Bank of India, didn’t immediately respond to calls to his office and mobile phone.
Sun Pharmaceutical Industries Ltd. (SUNP IN) advanced 2.2 percent to 2,155.75 rupees, set for its highest close since at least December 1994. The nation’s biggest drugmaker by market value said second-quarter profit rose 12 percent to 5.04 billion rupees in the three months ended Sept. 30 on higher demand for generic medicines. Profit beat the 3.66 billion rupee average of 17 analyst estimates compiled by Bloomberg.
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