“This is good for the companies because they require heavy capital expenditure,” said Jagannadham Thunuguntla, chief strategist at SMC Capitals Ltd. in New Delhi. “It makes sense to allow such companies to borrow from abroad.”

1. Sensex Advances on Borrowing Rules Led by Bharti, Jaiprakash
By Rajhkumar K Shaaw
Dec. 10 (Bloomberg) -- India’s benchmark stock index rose, led by Bharti Airtel Ltd. and
Jaiprakash Associates Ltd., after the central bank extended rules allowing
telecommunication companies and builders to raise funds abroad.
Bharti, the nation’s largest mobile-phone operator, gained 3.4 percent. Telecom and large-
project construction companies can raise money overseas until the end of next year, the
Reserve Bank of India said yesterday. Jaiprakash Associates Ltd., a builder of dams, roads
and bridges, added 1.6 percent.
“This is good for the companies because they require heavy capital expenditure,” said
Jagannadham Thunuguntla, chief strategist at SMC Capitals Ltd. in New Delhi. “It makes
sense to allow such companies to borrow from abroad.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, advanced 64.09, or 0.4 percent,
to 17,189.31. The S&P CNX Nifty Index on the National Stock Exchange gained 0.4 percent
to 5,134.65. The BSE 200 Index advanced 0.3 percent to 2,153.38.
Bharti advanced 3.4 percent to 342.4 rupees. Reliance Communications Ltd., the second-
largest mobile-phone operator, rose 2 percent to 185.6 rupees. Idea Cellular Ltd. gained 4.4
percent to 60.35 rupees.
Extending the provision will allow the companies to raise funds abroad to buy airwaves that
allow high-speed Internet access, enabling them to sell services with higher profit margins.
Extended Borrowing
India, which yesterday capped interest rates at which local companies can borrow abroad,
has no plans to curb foreign capital, central bank Governor Duvvuri Subbarao said.
Inflows, monitored by policy makers, are in line with the nation’s requirements and don’t
raise the threat of asset bubbles, Subbarao told reporters after the Reserve Bank’s board
meeting in the eastern city of Kolkata. The South Asian nation will act against any excessive
increase in the flows, he said, without giving details.

2. “There’s no concern about inflows building an asset bubble,” Subbarao said. “If and when
there’s an excess of capital flows, we will have to respond to that situation.”
Jaiprakash Associates advanced 1.6 percent to 232.05 rupees. The central bank said a rule
allowing telecom companies and large-project builders to borrow overseas will be extended
until Dec. 31, 2010, from the end of this year. DLF Ltd., the biggest developer, climbed 1
percent to 386.6 rupees.
Larsen, Satyam
Larsen & Toubro Ltd., India’s largest engineering company, rose 1.9 percent to 1,687.65
rupees after saying it aims to win 60 billion rupees ($1.3 billion) of orders a year building
nuclear reactors by 2015 as a global shift to cleaner energy spurs demand for atomic plants.
“The first orders for the foreign reactors will start coming in 2011,” M.V. Kotwal, Larsen’s
senior vice president, said in an interview in New Delhi late yesterday. “We can cater to the
needs for critical equipment for any of these technologies, whether Russian, French or
American.”
Shares of Satyam Computer Services Ltd., the software company at the center of India’s
biggest accounting probe, rose 5.4 percent to 108.1 rupees after it agreed to settle a
dispute with the U.K.’s Upaid Systems Ltd. Tech Mahindra Ltd., the owner of Satyam,
climbed 2.2 percent to 1,017.5 rupees.
Satyam will pay $70 million to Upaid, the Hyderabad-based company said in a statement
yesterday. A $45 million payment will be made after getting government and regulatory
approvals in India and the balance will be paid within 12 months of the first advance,
Satyam said.
Indian Hotels Ltd., the nation’s biggest operator of hotels, gained 2.4 percent to 96.45
rupees after it raised 4 billion rupees selling bonds to pay debt.
The company sold 2.5 billion rupees of 10-year debt and 1.5 billion rupees of five-year
bonds, according to Bloomberg data. Both the bonds carry a coupon of 2 percent.
Overseas funds bought a net 9.94 billion rupees of Indian equities on Dec. 8, taking their
investments in stocks this year to 774.1 billion rupees, the Securities and Exchange Board
of India said on its Web site. The funds withdrew a record 530 billion rupees in all of 2008.
The following were among the most active on the exchange:
Micro Inks Ltd. (MINK IN) jumped 20 percent to 629.55 rupees. The maker of printing inks
and adhesives said it plans to delist from the Bombay Stock Exchange and the National
Stock Exchange. The Gujarat-based company requires shareholder approval to withdraw
from the bourses, the company said in a statement yesterday.

3. Patni Computer Systems Ltd. (PATNI IN) climbed 2.8 percent to 472.7 rupees. The software
services provider was rated new “buy” by Nitin Padmanabhan, an analyst at Centrum
Broking Pvt., who set a price estimate of 540 rupees a share.
Praj Industries Ltd. (PRJ IN) gained 3.4 percent to 99.3 rupees after the maker of
equipment for sugar mills and distilleries said it signed a collaboration agreement with
Novozymes A/S on advanced biofuels.
Steel Authority of India Ltd. (SAIL IN) rose 1.6 percent to 206 rupees. India may approve a
plan to sell as much as 160 billion rupees of shares in the nation’s second-biggest
steelmaker by the end of this month. The stake sale will be completed in the year ending
March 31, Steel Minister Virbhadra Singh said late yesterday.