Mumbai: India's stocks rose the most in more than two weeks on speculation recent losses that sent the benchmark index 11 per cent below its April 7 peak may be excessive after commodity prices rebounded and corporate profits increased.
Sterlite Industries Ltd. snapped a three-day slump, tracking a recovery in metal prices. Bharat Petroleum Corp. rose after JPMorgan Chase & Co. upgraded the shares, citing a "more constructive view" on India's refiners and energy distributors. Power Grid Corp. of India rose 2.3 per cent after reporting higher profit.
The Bombay Stock Exchange's Sensitive Index, or Sensex, advanced 365.36, or 2.3 per cent, to 16,387.84, its largest gain since May 10. The gauge completed an 11 per cent plunge from its recent high, more than the 10 per cent some analysts consider a correction. The S&P CNX Nifty Index on the National Stock Exchange climbed 2.3 per cent to 4,917.40. The BSE 200 Index rose 2 per cent to 2,075.25.
Recovery
India's rupee strengthened the most in two weeks, snapping a five-day slide, as a regional stocks rally spurred risk-taking and exporters took advantage of recent weakness to repatriate income.
"The rupee has recovered from yesterday's [Tuesday's] lows as stocks are showing a positive trend," said Naveen Raghuvanshi, a currency trader at Development Credit Bank Ltd. in Mumbai. "Exporters started converting their dollars yesterday and may continue to do so."
