Indian Stocks Advance; Metal, Oil Producers Lead Gains
By Pooja Thakur
Aug. 22 (Bloomberg) -- Indian stocks rose, with the key benchmark index climbing the most in two weeks. Sterlite Industries (India) Ltd. and Cairn India Ltd. led commodity producers higher after a measure of product prices rose the most in 33 years and oil rebounded.
Sterlite, the nation's largest copper producer, added 4.4 percent, its biggest advance in two weeks. Hindalco Industries Ltd., India's largest non-ferrous metals producer, rose 4.8 percent, the most in more than a month.
``The rally in oil and metals is boosting commodity producers,' said R.K. Gupta, who manages the equivalent of $100 million of stocks at Taurus Asset Management Co. in New Delhi.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 157.76, or 1.1 percent, to 14,401.49, the most since Aug. 11. The index posted its second weekly decline, falling 2.2 percent. The S&P CNX Nifty Index on the National Stock Exchange added 43.60, or 1 percent, to 4,327.45.
The Reuters/Jeffries CRB Index of 19 commodities soared 3.7 percent, heading toward its biggest weekly gain in 33 years. Crude oil for October delivery surged 4.9 percent to $121.18 in New York, the biggest increase since June 6.
Sterlite advanced to 627.25 rupees. Hindalco rose to 134.65 rupees. Cairn India, a unit of Cairn Energy Plc, gained 1.7 percent to 247.15 rupees, its highest since July 4.
Overseas investors sold a net 2.85 billion rupees ($70.8 million) of Indian stocks on Aug. 20, increasing their net outflow this year from equities to $6.97 billion, according to the nation's stock market regulator.
The following were among the most active stocks traded on the Bombay and National Stock Exchanges. Stock symbols are in parentheses after company names:
EIH Ltd. (EIH IN) rose 15.15 rupees, or 11 percent, to 155.20, its highest since April 29. The founders of EIH, which runs the Oberoi brand of hotels in India, may sell a stake in the company, the Business Standard reported, citing P.R.S. Oberoi, chairman and chief executive officer. EIH is in talks with several investors and the founders may sell a 26 percent stake, the newspaper said, citing people it didn't identify. Oberoi denies selling a stake.
Hindustan Zinc Ltd. (HZ IN) added 7.8 rupees, or 1.4 percent, to 575. India's largest producer of the metal will invest 36 billion rupees to more than double capacity to 1.65 million tons.
Lupin Ltd. (LPC IN) climbed 11.65 rupees, or 1.6 percent, to 740.40. The Indian drugmaker acquired a minority stake in Melbourne-based Generic Health Pty Ltd.
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