Oricon, Reliance, Suzlon, Steel Authority, GTL Infra: India Equity Preview

Sep 3, 2010 at 3:30 AM

The following companies may have unusual price changes in India trading. Stock symbols are in parentheses and share prices are as of the last close.

The Bombay Stock Exchange Sensitive Index, or Sensex, rose 32.44, or 0.2 percent, to 18,238.31. The S&P CNX Nifty Index on the National Stock Exchange advanced 0.3 percent to 5,486.15. The BSE 200 Index climbed 0.3 percent to 2,342.89. SGX S&P CNX Nifty Index futures for September delivery gained 0.4 percent to 5,504.5 at 10:31 a.m. in Singapore.

Adani Power Ltd. (ADANI IN): The generation arm of the nation’s biggest coal importer was downgraded to “hold” from “buy” by Manish Saxena, an analyst at Deutsche Asset Management India Pvt., with a 12-month price estimate of 127 rupees per share. The stock sank 3.6 percent to 133.25 rupees.

Cipla Ltd. (CIPLA IN): The drugmaker’s board will consider a proposal to buy a stake in a unit of South Africa’s Cipla Medpro South Africa Ltd., the Business Standard newspaper reported, citing chairman and managing director Y.K. Hamied. The shares were little changed at 305.35 rupees.

DLF Ltd. (DLFU IN): The nation’s biggest developer has put on hold its plan to sell some non-core assets, the Economic Times reported, citing Rajeev Talwar, managing director of DLF Developers. The company said in July that it plans to raise about 25 billion rupees ($535 million) by selling some non-core assets. The stock rose 0.6 percent to 311.85 rupees.

GTL Infrastructure Ltd. (GTLI IN): The Mumbai-based company that helps customers build and manage computer networks was rated “underweight” in new coverage by Rajiv Sharma, an analyst at HSBC Holdings Plc, with a price estimate of 39 rupees per share. GTL declined 1.3 percent to 45.3 rupees.

Oricon Enterprises Ltd. (OTE IN): Clearwater Capital Partners Pvt. bought 10 percent of the chemicals maker and property developer for 338 million rupees in a single transaction in Mumbai yesterday. Clearwater purchased 961,641 shares of Mumbai-based Oricon at 351.5 rupees each, according to data on the Bombay Stock Exchange website yesterday. The shares rose 0.5 percent to 348.65 rupees.

Petronet LNG Ltd. (PLNG IN): India’s biggest importer of the fuel plans to invest 23 billion rupees to install two more storage tanks at its liquefied natural gas receiving and regasification terminal at Dahej in Gujarat state, the Business Standard reported, citing a company official it didn’t name. The stock climbed 0.2 percent to 111.85 rupees.

Reliance Industries Ltd., Suzlon Energy Ltd. (RIL IN, SUEL IN): Reliance has no plan to purchase a stake in the country’s biggest maker of wind turbines, spokesman Manoj Warrier said in a telephone interview yesterday. The nation’s most valuable company may acquire a stake in Suzlon, Zee Business television channel reported earlier, without saying where it got the information. Reliance gained 0.1 percent to 937.45 rupees, while Suzlon advanced 10 percent to 51.3 rupees.

Steel Authority of India Ltd. (SAIL IN): The nation’s second-largest producer of the alloy raised 3 billion rupees selling short-term commercial paper to State Bank of India, Press Trust of India reported yesterday, citing an unidentified company spokesman. The shares climbed 2 percent to 191.7 rupees.

Videocon Industries Ltd. (VCLF IN): Billionaire Venugopal Dhoot’s Videocon group may sell a controlling stake in its wireless unit to an overseas partner to help fund expansion of the business. Videocon may sell as much as a majority stake in Videocon Telecommunications Ltd. after investing 50 billion rupees in the network and spectrum for the mobile-phone company, Suresh Hegde, a director at the group said. The stock fell 0.4 percent to 260.05 rupees.

To contact the reporter on this story: Anil Varma in Mumbai at Avarma3@bloomberg.net; Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net.

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