Indian Stocks Rise; Banks, Automakers Climb on G-20 Pledge

March 16 (Bloomberg) -- Indian stocks rose, driving the benchmark index to its highest in two weeks, led by banks and carmakers after G-20 officials said their priority is to restore lending and oil prices tumbled.

State Bank of India, the nation's largest, gained 3.6 percent after the G-20 at the weekend outlined guidelines on how governments should rid banks of distressed securities. Mahindra & Mahindra Ltd., India's biggest maker of sport-utility vehicles, jumped 8.4 percent as oil slumped after OPEC refrained from cutting output.

The Bombay Stock Exchange's Sensitive Index, or Sensex, added 186.93, or 2.1 percent, to 8,943.54, the highest since Feb. 26. The gauge, which increased 5.2 percent last week, swung between gains and losses at least eight times earlier today. The S&P CNX Nifty Index on the National Stock Exchange advanced 2.1 percent to 2,777.25.

"Indian stocks had substantially rallied last week in anticipation of the G-20 meeting," said Shashank Khade, who helps manage $300 million at Kotak Securities Ltd. in Mumbai. "But now, what the markets want to see after the event, is the actions they take."

The BSE 200 Index climbed 2.3 percent to 1,047.5. S&P CNX Nifty futures for March delivery gained 2.2 percent to 2,775.80.

State Bank, ICICI

State Bank of India increased 3.6 percent to 987.05 rupees. ICICI Bank Ltd., India's second-largest, added 4.6 percent to 322.8 rupees, its highest level since Feb. 27.

Mahindra & Mahindra climbed 8.4 percent to 373.9. Tata Motors Ltd., the maker of Jaguar and Land Rover vehicles, gained 3.1 percent to 166.7 rupees.

Automakers advanced as oil futures tumbled on a decision by the Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world's crude oil, to maintain current production quotas. The group was concerned that a fourth cut since September risked increasing energy costs during the worst global economy in six decades.

Overseas investors sold a net 993 million rupees ($19 million) of Indian stocks on March 12, according to the nation's market regulator.

The following shares were among the most active on the exchange.

Ingersoll Rand India Ltd. (INGR IN), a unit of the U.S.- based producer of refrigeration equipment, gained 20 percent, the most in 3 1/2 years, to 248 rupees after saying it plans to buy back shares.

EID Parry Ltd. (EID IN): The sugar and agriculture inputs maker, rose 18 percent, the most in more than four months, to 152.25 after its board said it would pay an interim dividend of 10 rupees a share.

Gujarat Alkalies & Chemicals Ltd. (GALK IN) rose 2.4 percent to 57.75 rupees, after rising as much as 12.3 percent earlier. The Indian maker of caustic soda plans to invest about 100 billion rupees ($1.9 billion) in the next three years to make a variety of products for the plastics industry with state- owned companies, the Hindu Business Line reported March 14, citing an official it didn't identify.

JSW Steel Ltd. (JSTL IN) rose 2.2 percent to 185.35 rupees. India's third-biggest producer of the metal is in talks with an Australian miner to jointly explore and mine coking coal in Queensland, the Economic Times reported, citing an unnamed person mediating in the proposed venture.

Aluminum producers: National Aluminium Co. (NACL IN) rose 4.8 percent to 230.15 rupees and Hindalco Industries Ltd. (HNDL IN) climbed 1.2 percent to 42.75 rupees. India's so-called safeguards office in the ministry of finance recommended curbs on metal imports from China to protect domestic producers, a government official said.

The office has recommended a duty of 21 percent on imports of aluminum flat-rolled products and 35 percent on aluminum foils, Ranjit Kumar, joint commissioner at the directorate of safeguards, told Bloomberg News on March 13.

Reliance Communications Ltd. (RCOM IN) climbed 6.7 percent to 156.7 rupees. The company added 3.3 million subscribers in February, it said on March 13.

Reliance Industries Ltd. (RIL IN) rose 3.4 percent to 1,327.6 rupees. India's most valuable company today said it's considering all options to reopen fuel stations that were closed after the company made losses on sales.

Satyam Computer Services Ltd. (SCS IN) fell 0.6 percent to 45.25 rupees. IGate Corp., Larsen & Toubro Ltd. and other bidders face competition from buyout funds for control of the software maker that's up for sale after its former chairman admitted falsifying accounts.

Satyam received "adequate response" from Indian and international suitors, including private equity firms, the Hyderabad-based company said on March 13.

To contact the reporters on this story: Archana Chaudhary in Mumbai at achaudhary2@bloomberg.net M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net