Mumbai: India’s most valuable company Reliance Industries Ltd (RIL) and its refining unit had their stock price targets and earnings estimates cut by JPMorgan Chase and Co., citing a faster-than-expected decline in global oil demand. The price target for RIL was lowered by 8.6% to Rs1,600 and for Reliance Petroleum Ltd by 8.74% to Rs94, Pradeep Mirchandani and Adarsh Parasrampuria, Mumbai-based analysts at JPMorgan, said in a report on Wednesday.
The earnings estimates for the two firms for the years ending March 2009, March 2010 and March 2011 were reduced by 8% to 13%, based on the more conservative assumptions on margins, the report said.
Suzlon shares rise after unit wins €2 bn order
Mumbai: India’s biggest maker of wind-turbine generators Suzlon Energy Ltd climbed in Mumbai trading after German unit REpower Systems AG won an order worth about €2 billion (Rs12,560 crore).
Ahmedabad-based Suzlon rose as much as 12% in intraday trade, the most since 18 December, but lost momentum to close at Rs42.90 on Thursday, up 3% from Wednesday’s close.
REpower on Wednesday signed the agreement to supply as many as 250 wind turbines to RWE AG, Germany’s second largest utility.
Bonds drop as RBI buys debt at lower prices
Mumbai: India’s bonds fell, reversing the day’s gains, after the Reserve Bank of India (RBI) bought existing debt from the market at prices below expectations and rejected bids at one of the auctions.
The yield on the most-traded notes due in 2018 rose after RBI said it bought Rs5,000 crore of bonds, less than the planned Rs6,000 crore. RBI said said on 10 February it would buy securities from investors for more effective liquidity management as yields surged amid record borrowing by the Union government.