Bajaj Auto, DLF, Jet, Maruti, Ranbaxy: India Stock Preview

The following companies may have unusual price changes in India trading. Stock symbols are in parentheses and share prices are as of the Oct. 31 close.

The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, added 743.55, or 8.2 percent, to 9,788.06. The S&P CNX Nifty Index on the National Stock Exchange climbed 188.55, or 7 percent, to 2,885.60. The BSE 200 Index rose 7 percent to 1,145.68. SGX Nifty futures for November delivery added 4.5 percent to 3,030.50 in Singapore today.

India's central bank on Nov. 1 unexpectedly cut interest rates for the second time in two weeks and reduced the amount of money lenders must hold in reserve in a bid to protect the economy from the global slowdown.

The Reserve Bank of India lowered its repurchase rate to 7.5 percent from 8 percent, reduced the amount of deposits that lenders need to set aside as reserves to 5.5 percent from 6.5 percent, and cut the amount of money lenders are required to keep in government bonds to 24 percent from 25 percent.

Separately, the stock regulator eased the rules for stock lending and borrowing to facilitate short sales. The tenure for the lending facility has been extended to thirty days from the earlier seven days, the regulator said in a release issued on its Web site. Also, the time for lending securities was extended from one hour to 9.55 a.m. until 3:30 p.m., the release said.

Overseas funds sold a net 10.7 billion rupees ($266.5 million) of Indian equities on Oct. 29, increasing outflows from stocks this year to $12.9 billion, the country's market regulator said.

Bajaj Auto Ltd. (BJAUT IN): India's second-biggest motorcycle maker said Nov. 1 that sales fell 31 percent in October to 191,840 vehicles. Bajaj gained 13.85 rupees, or 2.6 percent, to 544.90.

DLF Ltd. (DLFU IN): India's biggest developer said second- quarter profit fell 4 percent to 19.4 billion rupees. Earnings missed the 20.3 billion rupee median estimate of analysts surveyed by Bloomberg News. DLF added 17.4 rupees, or 8.6 percent, to 220.

Jet Airways (India) Ltd. (JETIN IN): The nation's largest domestic airline plans to cut salaries of some employees as part of a cost-cutting program, the Times of India reported without saying where it got the information. Jet fell 2.4 rupees, or 1.5 percent, to 155.10.

Maruti Suzuki India Ltd. (MSIL IN): The nation's biggest carmaker said sales fell 7 percent in October as a global economic slump muted demand. Maruti advanced 20.35 rupees, or 3.8 percent, to 563.20.

Ranbaxy Laboratories Ltd. (RBXY IN): The Indian drugmaker controlled by Japan's Daiichi Sankyo Co. posted a third-quarter loss of 3.95 billion rupees compared with a profit of 2.35 billion rupees a year earlier. That compares with the 197.5 million rupee profit median estimate of analysts surveyed by Bloomberg News. Ranbaxy slid 2 rupees, or 1.2 percent, to 168.75.

Steel Authority of India Ltd. (SAIL IN): The country's second-biggest steelmaker cut November prices to cope with falling demand. Prices of both flat and long products have been lowered by as much as 6,000 rupees a metric ton, R.K. Singhal, a company spokesman, said in a telephone interview from New Delhi where the company is based. The shares declined 0.7 rupee, or 0.8 percent, to 84.60.

Tata Motors Ltd. (TTMT IN): The Indian automaker that bought vehicle manufacturers Jaguar and Land Rover said it will reconsider a plan to raise as much as $600 million from overseas markets. Tata Motors rose 9.75 rupees, or 6.1 percent, to 169.55.

Unitech Ltd. (UT IN): India's second-biggest developer said second-quarter profit fell 12 percent to 3.59 billion rupees in the three months ended Sept. 30. Unitech fell 2.2 rupees, or 4.4 percent, to 48.40.

To contact the reporter on this story: Debarati Roy in Mumbai at droy5@bloomberg.net. Pooja Thakur in Mumbai at pthakur@bloomberg.net.

Source: bloomberg.com