Indian stocks rose, with the Bombay Stock Exchange Sensitive Index climbing to its highest in a month. Commodity producers advanced after oil and metal prices gained on speculation that the US would rescue American automakers.
Oil & Natural Gas Corp (ONGC), India’s biggest oil producer, rose 4.3 per cent, the most in three weeks. Sterlite Industries (India), the nation’s biggest copper and zinc producer, gained 5 per cent to its highest in two months.
“Stocks are following global news flows and the gains in commodity prices,” said Mahesh Patil, who helps manage $9.6 billion in assets at Birla Sun Life Asset Management.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 1.5 per cent to 9,832.39. The S&P CNX Nifty Index on the National Stock Exchange rose 2 per cent to 2,981.20. The BSE 200 Index gained 2.1 per cent to 1,158.24. Nifty futures for December delivery climbed 2 per cent to 2,981.
ONGC advanced 4.3 per cent to Rs 673.85, the most since November 21. Sterlite climbed to Rs 307.2, its highest since October 14. Hindalco Industries climbed 5.7 per cent to Rs 55.85, the most since November 14.
President George W Bush said his administration may tap funding approved to rescue Wall Street firms to help General Motors Corp and Chrysler LLC. The failure of the Senate to pass a $14-billion aid package sparked a 4.2 per cent plunge on MSCI’s Asian index on December 12.
Speculation of the bailout led copper to gain as much as 3.3 per cent. Crude climbed as much as 3.2 per cent to $47.78 a barrel in New York On Monday ahead of an expected supply cut announcement from the Opec on December 17.
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Steel Authority of India, the country’s second-biggest steelmaker, added 8.8 per cent to Rs 87, the highest since November 10. Tata Steel, the nation’s largest producer, gained 3.8 per cent to Rs 227.20.
Overseas investors bought a net Rs 330 crore ($69 million) of Indian stocks on December 11, reducing the outflow from stocks this year to $13.1 billion, the market regulator said.