India’s Stocks Advance to Highest in 21 Months; Sterlite Climbs
By Pooja Thakur
Jan. 5 (Bloomberg) -- Indian stocks rose, driving the benchmark index to a 21-month high. Sterlite Industries (India) Ltd. led gains by commodity producers after prices of raw materials rose.
Sterlite, the nation’s largest copper producer, gained 4.9 percent after prices of the metal in London, New York and Shanghai reached 16-month highs yesterday. Cairn India Ltd., an oil explorer, climbed 3.6 percent after crude futures in New York yesterday reached the highest settlement since October 2008.
Hindalco Industries Ltd., the country’s biggest aluminum maker, rose 7.2 percent while National Aluminium Co. jumped 15 percent. Both stocks rose to their highest in 19 months after Aluminum Corp. of China Ltd. increased alumina prices.
“The commodity rally is having a positive impact on metal and oil stocks,” said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. “The commodity rally could continue further.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 127.51, or 0.7 percent, to 17,686.24, its highest since Feb. 28, 2008. The S&P CNX Nifty Index on the National Stock Exchange gained 0.9 percent to 5,277.90. The BSE 200 Index added 1 percent to 2,221.28.
Metals
Sterlite gained 4.9 percent to 917.45 rupees. Copper for April delivery on the Shanghai Futures Exchange rose as much as 0.8 percent. Hindalco rose 7.2 percent to 175.20 rupees. National Aluminium added 15 percent to 505.35 rupees. Tata Steel Ltd., India’s biggest maker of the alloy, added 2.4 percent to 649.10 rupees. JSW Steel Ltd. jumped 11 percent to 1,134.90 rupees.
Cairn India, a unit of U.K. explorer Cairn Energy Plc, gained 3.6 percent to 295.85 rupees. Crude oil for February delivery rose 2.7 percent to $81.51 a barrel in New York yesterday.
Godrej Properties Ltd., controlled by Indian billionaire Adi Godrej, rose 9.6 percent to 537.25 rupees in its debut on stock exchanges today. The company raised 4.7 billion rupees in an initial share sale at a price of 490 rupees each.
Dr. Reddy’s Laboratories Ltd. advanced 3.1 percent to 1,177.45 rupees. The nation’s second-biggest drugmaker and Rheoscience said their Balaglitazone diabetes drug has met its primary target in the first of its phase 3 clinical trials. Balaglitazone reduced blood glucose levels over a period of time in the study conducted on 409 patients, Hyderabad-based Dr. Reddy’s said in a statement.
Punjab Alkalies & Chemicals Ltd. climbed 4.9 percent, its daily limit, to 32.2 rupees. The state-controlled company said the Punjab state government named IFCI Ltd. as the adviser for the sale of the government’s stake in the company.
Overseas funds bought a net 8.34 billion rupees ($178.7 million) of Indian equities on Dec. 31, taking their investments in stocks last year to $17.7 billion, the nation’s market regulator said yesterday. The purchases by global investors in 2009 matched the record they invested in 2007.
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