Aban, Coal, Hindalco, Tata Motors, Apollo, GVK Power: India Equity Preview
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 80.10, or 0.4 percent, to 20,932.48. The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 percent to 6,301.55. The BSE 200 Index increased 0.4 percent to 2,659.62. SGX S&P CNX Nifty Index futures for November dropped 0.7 percent to 6,304 as of 10:40 a.m. in Singapore.
Energy companies: Gujarat State Petronet Ltd. (GUJS IN), Oil India Ltd. (OINL IN) and Petronet LNG Ltd. (PLNG IN) were rated “buy” in new coverage by Harshad Katkar and Amit Murarka, analysts at Deutsche Bank AG. The analysts set share- price estimates of 130 rupees for Gujarat State Petronet, 1,600 rupees for Oil India, and 150 rupees for Petronet LNG.
Gujarat State Petronet rose 0.1 percent to 119.15 rupees. Oil India fell 0.1 percent to 1,451.2 rupees. Petronet LNG gained 5.9 percent to 126.75 rupees.
Tire companies may raise prices by as much as 5 percent next month after natural rubber prices climbed in recent weeks, the Business Standard reported, citing Satish Sharma, chief of India operations at Apollo Tyres.
Apollo Tyres Ltd. (APTY IN) gained 1.3 percent to 72.95 rupees, JK Tyre and Industries Ltd. (JKI IN) lost 0.6 percent to 158.3 rupees, and MRF Ltd. (MRF IN) fell 0.2 percent to 9,358.75 rupees.
Aban Offshore Ltd. (ABAN IN): India’s largest oil-field equipment provider was raised to “outperform” from “neutral” by Jal Irani, an analyst at Macquarie Group, with a price estimate of 970 rupees a share. The stock rose 1.1 percent to 850.15 rupees.
Aditya Birla Nuvo Ltd. (ABNL IN): The Birla Group company may bid to buy the carbon black division of Germany’s Evonik Industries AG, the Business Standard reported, citing two investment banking sources it didn’t identify. The unit may be valued at more than $1.25 billion, the newspaper said. The shares dropped 0.9 percent to 829.8 rupees.
Apollo Hospitals Enterprise Ltd. (APHS IN): The hospital operator plans to spend 11 billion rupees ($248 million) to add 2,600 beds by 2013, Suneeta Reddy, executive director of finance, said in an interview yesterday. The shares increased 0.6 percent to 526.7 rupees.
Cairn India Ltd. (CAIR IN): The operator of the nation’s biggest onshore crude oil field was downgraded to “hold” from “buy” by Avadhoot Sabnis, an analyst at RBS Equities India Ltd., with a 12-month price estimate of 340 rupees per share. The stock rose 0.3 percent to 332.9 rupees.
Coal India Ltd. (COAL IN): The world’s largest producer of the fuel has bid for Drummond Co.’s Colombian assets, the Press Trust of India reported, citing people it didn’t identify. Coal India Chairman Partha Bhattacharyya didn’t answer calls to his mobile phone seeking comment. The shares declined 1.4 percent to 326.05 rupees.
GVK Power & Infrastructure Ltd. (GVKP IN): The electricity generator was downgraded to “buy” from “strong buy” with a 15-month share-price estimate of 53 rupees by Deepak Purswani, an analyst at ICICIdirect. The stock climbed 3 percent to 46.95 rupees.
Hindalco Industries Ltd. (HNDL IN): The nation’s largest aluminum maker reported second-quarter profit rose 26 percent to 4.34 billion rupees as higher base metal prices outweighed rising raw material costs and a disruption in production. The shares rose 0.2 percent to 230.75 rupees.
Infrastructure Development Finance Co. (IDFC IN): The provider of infrastructure project financing services was cut to “neutral” from “outperform” by Ashish Gupta and Deepak Ramineedi, analysts at Credit Suisse Group AG, who said the company’s second-quarter profit missed its estimate and that the stock is “fully valued.” The analysts kept the share-price estimate of 226 rupees. The stock lost 3.6 percent to 207.35 rupees.
Kajaria Ceramics Ltd. (KJC IN): The ceramic tile maker backed by billionaire investor Rakesh Jhunjhunwala may spend as much as 1.5 billion rupees on a new unit in India’s south to meet demand. The shares fell 0.5 percent to 78.8 rupees.
Nestle India Ltd. (NEST IN): The unit of the world’s largest food company was cut to “reduce” from “buy” at Nomura Holdings Inc., which said valuations will “hold back” further gains in the stock. The brokerage increased its share- price estimate to 3,525 rupees from 3,230 rupees, according to a report by Manish Jain and Anup Sudhendranath. The stock jumped 7.2 percent to 4,002.35 rupees.
Power Grid Corp. of India (PWGR IN): The nation’s biggest transmission company was raised to “neutral” from “underperform” with a price estimate of 100 rupees a share by Jeff Evans, an analyst at Macquarie Group. The company was raised to “strong buy” from “accumulate” with a price forecast of 124 rupees a share by Ravikiran Surana, an analyst at Alchemy Share & Stock Brokers Ltd. The stock increased 5.5 percent to 103.80 rupees.
Tata Motors Ltd. (TTMT IN): The owner of Jaguar Land Rover reported second-quarter group profit of 22.2 billion rupees, exceeding the 17.1 billion-rupee average estimate of 10 analysts surveyed by Bloomberg. The shares gained 0.1 percent to 1,269.90 rupees.
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