DB Realty, LIC Housing Finance, HDFC Bank: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, lost 231.99, or 1.2 percent, to 19,459.85. The S&P CNX Nifty Index on the National Stock Exchange dropped 1.2 percent to 5,865.75. The BSE 200 Index declined 1.2 percent to 2,466.45. SGX S&P CNX Nifty Index futures for December increased 0.3 percent to 5,890.5 as of 10:45 a.m. in Singapore.
Banks: India’s federal investigating agency arrested executives from state-run banks including Bank of India (BOI IN), Central Bank of India (CBOI IN) and Punjab National Bank (PNB IN) following a probe into bribes and improper loan disbursals. Bank of India sank 5.3 percent to 448.65 rupees. Central Bank of India plunged 8.1 percent to 198.25 rupees. Punjab National fell 3 percent to 1265.8 rupees.
Fertilizer companies: A panel headed by Finance Minister Pranab Mukherjee may decide at a meeting on Nov. 29 to end urea price controls and lift import and export restrictions, the Financial Express reported, citing a person it didn’t name.
Chambal Fertilizers & Chemicals Ltd. (CHMB IN) increased 0.5 percent to 89.1 rupees. Coromandel International Ltd. (CRIN IN) slumped 3.6 percent to 576.8 rupees. National Fertilizers Ltd. (NFL IN) dropped 0.8 percent to 115.2 rupees. Rashtriya Chemicals and Fertilizers Ltd. (RCF IN) lost 1.5 percent to 115.05 rupees.
Lenders: India’s probe into alleged bribes and improper loan disbursals by financial institutions may lead to “some derating” of the public sector banking industry, Manish Chowdhary and other Citigroup Inc. analysts wrote in a report, saying they favor companies including HDFC Bank Ltd. (HDFCB IN), Axis Bank Ltd. (AXSB IN) and ICICI Bank Ltd. (ICICIBC IN).
HDFC Bank decreased 2.6 percent to 2,311.4 rupees. Axis Bank retreated 2.6 percent to 1,384.8 rupees. ICICI Bank declined 2.8 percent to 1,125.1 rupees.
Steel companies: Tata Steel Ltd. (TATA IN), JSW Steel Ltd. (JSTL IN) and Ispat Industries Ltd. (NDEN IN) are considering raising prices in December, the Business Standard reported, citing company officials including Hemant Nerurkar, managing director of Tata Steel. Tata Steel, the biggest producer of the alloy, rose 0.7 percent to 616.6 rupees. JSW Steel, the third- biggest producer, lost 2 percent to 1,202.7 rupees. Ispat declined 1.2 percent to 17.1 rupees.
Real Estate Companies: DB Realty Ltd. (DBRL IN) and Oberoi Realty Ltd. (OBER IN) were named in the loan and bribery investigation, ET Now reported. DB Realty Managing Director Shahid Balwa said India’s Central Bureau of Investigation had requested documents on a 2 billion rupee ($44 million) loan from LIC Housing Finance Ltd., which “has nothing to do with the current situation.” The stock fell 17 percent to 258.85 rupees. Oberoi Realty Managing Director Vikas Oberoi said the company hasn’t taken a loan from LIC Housing Finance Ltd. or dealt with Money Markets Financial Services Ltd., both entities at the center of the investigation. The stock fell 3.2 percent to 262.4 rupees.
Areva T&D India Ltd. (ATD IN): The unit of the world’s biggest maker of nuclear reactors was raised to “buy” from “sell’ by Venkatesh Balasubramaniam and other analysts at Citigroup Inc. The stock slid 1.5 percent to 294.85 rupees.
Jet Airways (India) Ltd. (JETIN IN): The nation’s biggest carrier will start flying from Rome to Mumbai in the winter of 2011, Chairman Naresh Goyal told reporters in Milan. The stock rose 1.6 percent to 886.4 rupees.
LIC Housing Finance Ltd. (LICHF IN): The chief executive officer of the home-loan lending arm of India’s largest insurer, Ramachandran R. Nair, was arrested yesterday by the nation’s federal investigating agency. The stock fell 18 percent to 1,070.2 rupees.
Money Matters Financial Services Ltd. (MOMF IN): Offices of the Mumbai-based company were raided and sealed by India’s Central Bureau of Investigation, and some staff including Chairman and Managing Director Rajesh Sharma were arrested in connection with the LIC Housing finance case. The stock fell 20 percent to 533.8 rupees.
NTPC Ltd. (NATP IN): Asia’s second-biggest power producer by market value plans to join Japan’s Kyushu Electric Power Co. and the Asian Development Bank to invest in 500 megawatts of clean-energy projects in India, according to a statement on the Manila-based lender’s website.
Separately, NTPC is likely to settle its five-year-old dispute with Reliance Industries Ltd. (RIL IN) over the supply of gas to its plants in Gujarat out of court, the Economic Times Reported, citing government officials it didn’t name. NTPC fell 1 percent to 178.15 rupees. Reliance Industries added 0.1 percent to 996.05 rupees.
Sun Pharmaceutical Industries Ltd. (SUNP IN): India’s largest drugmaker by market value received tentative approval from U.S. regulators to sell a copy of Cymbalta, Eli Lilly & Co.’s depression medicine, according to a statement on the Bombay Stock Exchange. Sun fell 0.1 percent to 454.67 rupees.
Suzlon Energy Ltd. (SUEL IN): The wind-turbine maker hired Money Matters Financial Services Ltd. as a financial adviser to help raise a loan in 2009, the company said in an e-mailed statement. The stock fell 0.1 percent to 50.4 rupees.
Tulip Telecom Ltd. (TTSL IN): The wireless service provider was raised to ‘‘buy” from “hold” by Yogesh Kirve, an analyst at Anand Rathi Securities, with a 12-month price estimate of 225 rupees per share. The stock was unchanged at 175.2 rupees.
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