Indian Stocks Rise for First Day in Four; State Bank Gains
June 16 (Bloomberg) -- Indian stocks rose, with the benchmark Sensitive Index snapping a three-day, 3.8 percent decline. Financial companies gained after Goldman, Sachs and Co. raised its ratings of State Bank of India and other lenders.
State Bank, the nation's biggest, gained 4.4 percent. Indian Overseas Bank leapt 4.6 percent and Punjab National Bank advanced 3.2 percent. Goldman Sachs said the lenders would benefit from a rebound in the economy.
"The Indian economy and the financial sector are returning back to a potential growth path, post a period of adjustment to the intense dislocation in the global economic environment," analysts led by Sampath S.K. Kumar at Goldman Sachs said in a note to clients today.
Reliance Industries Ltd., the nation's most valuable company, fell 1.6 percent, extending yesterday's 7.8 percent drop, after its stock rating was downgraded by Kotak Securities Ltd., saying a court ruling yesterday could dent earnings.
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 82.39, or 0.6 percent, to 14,957.91. It had fallen as much as 1.7 percent earlier. The S&P CNX Nifty Index on the National Stock Exchange gained 0.8 percent to 4,517.80. The BSE 200 Index rose 1.2 percent to 1,829.27.
State Bank rose 4.4 percent to 1,714.35 rupees, Indian Overseas surged 4.6 percent to 85.65 rupees and Punjab National jumped 3.2 percent to 630.85 rupees.
State Bank and Indian Overseas were raised to "buy" from "neutral," while Punjab National was upgraded to "buy" from "sell," Goldman Sachs said in a report today. State Bank was also added to the brokerage's "Conviction List," while Bank of Baroda was raised to "neutral" from "sell."
Gas-Price Ruling
Reliance fell for a second day, losing 1.6 percent to 2,143.35 rupees. The stock's rating was cut to "sell" at Kotak Securities, which cited an "unfavorable" gas-price ruling by the Bombay High Court. Reliance's price estimate was cut 5.7 percent to 1,650 rupees. An Indian court yesterday ordered the fuels explorer to sell natural gas at 44 percent less than the government-set price.
"We are seeing a rotation in sectors with investors now moving out of the commodity space and into areas like financial services again," said Shashank Khade, who helps manage $300 million in assets at Kotak Securities in Mumbai.
Overseas funds bought a net 5.19 billion rupees ($109 million) of Indian stocks on June 12, according to the nation's stock-market regulator.
The following shares were among the most active on the exchange:
Airlines: Jet Airways (India) Ltd. (JETIN IN), the nation's second-biggest domestic airline, fell 5.3 percent to 262.65 rupees. Kingfisher Airlines Ltd. (KAIR IN), India's largest domestic airline, declined 1.7 percent to 57.15 rupees.
Indian Oil Corp. (IOCL IN), the nation's largest refiner, increased jet-fuel prices 12 percent with effect from today, a company official said yesterday. The price in Mumbai, home to the country's busiest airport, was raised by 4,106 rupees to 37,367 rupees a kiloliter, the official said in a mobile-phone text message, asking not to be identified until the figures are posted on Indian Oil's Web site.
Ansal Properties & Infrastructure Ltd. (APIL IN) rose 4.9 percent to 63.30 rupees. The Indian developer will seek shareholders' approval to raise as much as 40 billion rupees selling securities to funds and by public offers.
Dr. Reddy's Laboratories (DRRD IN) gained 1 percent to 712.90 rupees. India's second-biggest drugmaker said it is planning a venture with GlaxoSmithKline Plc to market its products in emerging markets outside the South Asian country.
Sterlite Industries (India) Ltd. (STLT IN) fell 4.5 percent to 634.30 rupees. The nation's largest copper and zinc producer plans to raise funds equivalent to as much as 25 percent of the company's paid-up capital, Sterlite said yesterday. The company may increase its offer for bankrupt copper miner Asarco LLC, raising the bid to $1.87 billion from $1.7 billion, the Telegraph newspaper reported today, without saying where it obtained the information.
Mount Everest Mineral Water Ltd. (MEM IN) added 1.6 percent to 84 rupees. Tata Tea Ltd. (TT IN), the Indian company that owns brands such as Tetley, bought a further 2.05 percent stake in Mount Everest Mineral Water for 57.4 million rupees, according to a filing on the Bombay Stock Exchange.
Unitech Ltd. (UT IN) advanced 2.2 percent to 88.90 rupees. India's second-biggest developer said it has no immediate plans to offer shares after demand for homes exceeded estimates and it sold properties including hotels for 10 billion rupees.
To contact the reporter on this story: Pooja Thakur in Mumbai at 9032 or pthakur@bloomberg.net
June 16 (Bloomberg) -- Indian stocks rose, with the benchmark Sensitive Index snapping a three-day, 3.8 percent decline. Financial companies gained after Goldman, Sachs and Co. raised its ratings of State Bank of India and other lenders.
State Bank, the nation's biggest, gained 4.4 percent. Indian Overseas Bank leapt 4.6 percent and Punjab National Bank advanced 3.2 percent. Goldman Sachs said the lenders would benefit from a rebound in the economy.
"The Indian economy and the financial sector are returning back to a potential growth path, post a period of adjustment to the intense dislocation in the global economic environment," analysts led by Sampath S.K. Kumar at Goldman Sachs said in a note to clients today.
Reliance Industries Ltd., the nation's most valuable company, fell 1.6 percent, extending yesterday's 7.8 percent drop, after its stock rating was downgraded by Kotak Securities Ltd., saying a court ruling yesterday could dent earnings.
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 82.39, or 0.6 percent, to 14,957.91. It had fallen as much as 1.7 percent earlier. The S&P CNX Nifty Index on the National Stock Exchange gained 0.8 percent to 4,517.80. The BSE 200 Index rose 1.2 percent to 1,829.27.
State Bank rose 4.4 percent to 1,714.35 rupees, Indian Overseas surged 4.6 percent to 85.65 rupees and Punjab National jumped 3.2 percent to 630.85 rupees.
State Bank and Indian Overseas were raised to "buy" from "neutral," while Punjab National was upgraded to "buy" from "sell," Goldman Sachs said in a report today. State Bank was also added to the brokerage's "Conviction List," while Bank of Baroda was raised to "neutral" from "sell."
Gas-Price Ruling
Reliance fell for a second day, losing 1.6 percent to 2,143.35 rupees. The stock's rating was cut to "sell" at Kotak Securities, which cited an "unfavorable" gas-price ruling by the Bombay High Court. Reliance's price estimate was cut 5.7 percent to 1,650 rupees. An Indian court yesterday ordered the fuels explorer to sell natural gas at 44 percent less than the government-set price.
"We are seeing a rotation in sectors with investors now moving out of the commodity space and into areas like financial services again," said Shashank Khade, who helps manage $300 million in assets at Kotak Securities in Mumbai.
Overseas funds bought a net 5.19 billion rupees ($109 million) of Indian stocks on June 12, according to the nation's stock-market regulator.
The following shares were among the most active on the exchange:
Airlines: Jet Airways (India) Ltd. (JETIN IN), the nation's second-biggest domestic airline, fell 5.3 percent to 262.65 rupees. Kingfisher Airlines Ltd. (KAIR IN), India's largest domestic airline, declined 1.7 percent to 57.15 rupees.
Indian Oil Corp. (IOCL IN), the nation's largest refiner, increased jet-fuel prices 12 percent with effect from today, a company official said yesterday. The price in Mumbai, home to the country's busiest airport, was raised by 4,106 rupees to 37,367 rupees a kiloliter, the official said in a mobile-phone text message, asking not to be identified until the figures are posted on Indian Oil's Web site.
Ansal Properties & Infrastructure Ltd. (APIL IN) rose 4.9 percent to 63.30 rupees. The Indian developer will seek shareholders' approval to raise as much as 40 billion rupees selling securities to funds and by public offers.
Dr. Reddy's Laboratories (DRRD IN) gained 1 percent to 712.90 rupees. India's second-biggest drugmaker said it is planning a venture with GlaxoSmithKline Plc to market its products in emerging markets outside the South Asian country.
Sterlite Industries (India) Ltd. (STLT IN) fell 4.5 percent to 634.30 rupees. The nation's largest copper and zinc producer plans to raise funds equivalent to as much as 25 percent of the company's paid-up capital, Sterlite said yesterday. The company may increase its offer for bankrupt copper miner Asarco LLC, raising the bid to $1.87 billion from $1.7 billion, the Telegraph newspaper reported today, without saying where it obtained the information.
Mount Everest Mineral Water Ltd. (MEM IN) added 1.6 percent to 84 rupees. Tata Tea Ltd. (TT IN), the Indian company that owns brands such as Tetley, bought a further 2.05 percent stake in Mount Everest Mineral Water for 57.4 million rupees, according to a filing on the Bombay Stock Exchange.
Unitech Ltd. (UT IN) advanced 2.2 percent to 88.90 rupees. India's second-biggest developer said it has no immediate plans to offer shares after demand for homes exceeded estimates and it sold properties including hotels for 10 billion rupees.
To contact the reporter on this story: Pooja Thakur in Mumbai at 9032 or pthakur@bloomberg.net
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