Benchmark rises to highest in two years

Mumbai: India's stocks rose to the highest level in more than two years on expectations that earnings of local companies will remain strong.

Hindalco Industries Ltd., the nation's biggest aluminium producer, gained 1.2 per cent after Alcoa Inc., the largest US maker of the metal, reported profit that beat analysts' estimates, signalling economic recovery and higher demand for the metal. Housing Development Finance Corp., a mortgage lender, rose 2 per cent before tomorrow's earnings report. Profit climbed 31 per cent, according to a survey of nine analysts by Bloomberg.

"Metal, banking and infrastructure stocks are going to post good results," said Anu Jain, vice president at Mumbai- based IIFL Private Wealth Management Ltd., which advises clients on investment strategies for assets worth $1.7 billion. "We are bullish on the markets. We are buying at every dip. The outlook for growth and earnings remains strong."

The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 48.70, or 0.3 per cent, to 17,985.90, its highest since February 19, 2008. The measure climbed for a fourth day after the International Monetary Fund said India's economy may expand this year at the fastest pace since 2007.

The S&P CNX Nifty Index on the National Stock Exchange rose 0.3 per cent to 5,400.65. The BSE 200 Index increased 0.4 per cent to 2,287.88.

Hindalco added 1.2 per cent to Rs151.3.

Tata Steel Ltd., the biggest producer of the alloy, increased 2.2 per cent to Rs508.8.