Mumbai: India's benchmark stock index advanced. Sterlite Industries (India) Ltd. led metal producers higher after copper gained for a second day.
Sterlite, the nation's largest copper producer, rose 1.7 per cent as the price of the commodity increased on speculation that demand may reduce stockpiles. Tata Steel Ltd., the biggest producer of the alloy, added 1.6 per cent.
"Commodity prices have been beaten down so we are seeing a rally in prices as some data points improve and that's boosting stocks," said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals.
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 188.33, or 1.2 per cent, to 16,226.68. The S&P CNX Nifty Index on the National Stock Exchange rose 1.1 per cent to 4,855.75. The BSE 200 Index advanced 1.1 per cent to 2,057.97.
Sterlite climbed 2.4 per cent to Rs762.25. Tata Steel advanced 1.9 per cent to Rs550.1. Hindalco Industries Ltd., India's biggest aluminium producer, added 3.2 percent to Rs145.4.
The price of copper for delivery in three months rose as much 2.5 per cent on the London Metal Exchange, extending yesterday's 0.8 per cent gain, amid speculation demand may pick up after Japan's quarterly economic growth accelerated. Nickel increased to the highest since August 13.
Tata Motors Ltd. climbed 2.9 per cent. India's biggest truckmaker said it was "looking at various options" to sell a stake in its vehicle finance unit.
