Bloomberg News

Indian Equity Movers: MSCI Changes, Oil Refiners, Kingfisher

November 16, 2011

Nov. 16 (Bloomberg) -- Shares of the following companies had unusual moves in Indian trading. Stock symbols are in parentheses and prices are as of the 3:30 p.m. close in Mumbai.

The BSE India Sensitive Index, or Sensex, lost 0.6 percent to 16,775.87. The BSE200 Index fell 0.8 percent to 2,032.73.

MSCI additions: Idea Cellular Ltd. (IDEA IN), a cell-phone operator, rallied 4.7 percent to 98.85 rupees, the most since Aug. 25, and Power Finance Corp. (POWF IN) climbed 4.6 percent to 168.35 rupees. The companies will join the MSCI India Index, according to an MSCI statement dated Nov. 15.

MSCI deletions: Companies set to be deleted from the MSCI India Index fell. Steel Authority of India Ltd. (SAIL) tumbled 5.3 percent to 93.80 rupees, its lowest close since March 30, 2009. Indiabulls Real Estate Ltd. (IBREL IN) lost 3.1 percent to 66.05 rupees, its lowest close on record, and Housing Development & Infrastructure Ltd. (HDIL IN) dropped 4.5 percent to 74.65 rupees, the lowest level since March 20, 2009.

Oil Refiners: Indian Oil Corp. (IOCL IN) lost 2.8 percent to 267.90 rupees, its lowest close since August 2009. Bharat Petroleum Corp. (BPCL IN) slumped 4.2 percent to 515.95 rupees and Hindustan Petroleum Corp. (HPCL IN) plunged 5.1 percent to 286.20 rupees. State refiners led by Indian Oil cut gasoline prices for the first time in almost three years. The price of the fuel will be cut by 2.22 rupees a liter in New Delhi.

Bharat Heavy Electricals Ltd. (BHEL IN), the country’s largest power-equipment maker, slumped 3.6 percent to 298.20 rupees, the lowest close since April 2009. The stock fell on speculation orders may slow after data from the Central Electricity Authority showed power producers fell short of the government’s capacity-addition target by 85 percent last month.

“The CEA data indicate that execution of projects and orders are coming down, which has an immediate impact on Bharat Heavy’s revenue,” said Bhargav Buddhadev, vice president of institutional equities at Ambit Capital Pvt. “We think Bharat Heavy is in a structural downturn and see no reason to buy the stock until at least 2014 when orders for 2018 and beyond start.”

Kingfisher Airlines Ltd. (KAIR IN) surged 14.2 percent to 24.90 rupees, the most since May 20, 2009. Vijay Mallya, its billionaire chairman, dismissed speculation the carrier may collapse as it cuts flights, seeks new loans and asks for government assistance.

BGR Energy Systems Ltd. (BGRL IN) declined 1.1 percent to 278.30 rupees, its lowest close since July 2009, after the stock was downgraded to “underperform” from “outperform” at Batlivala & Karani Securities by equity analyst Renu Baid.

--Editor: Ravil Shirodkar

To contact the reporter on this story: Shikhar Balwani in Mumbai at sbalwani@bloomberg.net;

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.


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