By Pooja Thakur Nov. 3 (Bloomberg) -- Indian stocks rose to the highest in two weeks, led by financial companies, after the central bank cut a key interest rate and eased lending restrictions to cushion Asia's third-largest economy from a global slowdown. ICICI Bank Ltd. jumped 8 percent after the Reserve Bank of India lowered its repurchase rate to 7.5 percent from 8 percent, reduced the amount of deposits that lenders need to set aside as reserves to 5.5 percent from 6.5 percent, and cut the amount of money lenders are required to keep in government bonds to 24 percent from 25 percent. ``Sentiment has turned positive with the central bank measures,'' said Sandip Sabharwal, chief investment officer at Mumbai-based J.M. Financial Mutual Fund, who oversees the equivalent of $430 million in Indian equities. ``Still, India needs to generate excess liquidity rather than adequate liquidity to bring back confidence.'' The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, added 549.62, or 5.6 percent, to 10,337.68, its highest since Oct. 21. The S&P CNX Nifty Index on the National Stock Exchange climbed 158.25, or 5.5 percent, to 3,043.85. The BSE 200 Index rose 5.4 percent to 1,206.96. Nifty futures for November delivery added 6.3 percent to 3,062. The Bombay stock exchange's 18-stock banking index jumped 7.5 percent, the most since Oct. 13. ICICI, the nation's second-largest lender, added 8 percent to 430.70 rupees, its highest since Oct. 21. State Bank of India, the largest, gained 12 percent to 1,240.40 rupees, the most since March 11, 1994. DLF Ltd., India's biggest developer, gained 15 percent to 253.25 rupees, the most since Oct. 2007. Tata Motors Ltd., the nation's largest truck and bus maker, added 12 percent to 190.45 rupees, its biggest gain since 1993. Overseas funds sold a net 10.7 billion rupees ($266.5 million) of Indian equities on Oct. 29, increasing outflows from stocks this year to $12.9 billion, the country's market regulator said. The following were among the most active shares traded on the Bombay and National stock exchanges. Stock symbols are in parentheses after company names: Airlines: India scrapped a 5 percent levy on imports of aviation fuel to help the nation's airlines, reeling under losses stemming from high fuel costs, the finance ministry said. The abolition may lower prices of fuel sold by Indian refiners and provide relief to the aviation sector, the finance ministry said in an e-mailed release in New Delhi. The changes took effect from Oct. 31. Jet Airways (India) Ltd. (JETIN IN), the largest domestic airline, gained 36.8 rupees, or 24 percent, to 191.90, the most since listing in March 2005. Kingfisher Airlines Ltd. (KAIR IN) rose 1.6 rupees, or 5 percent, to 33.85. Bajaj Auto Ltd. (BJAUT IN) fell 46.45 rupees, or 8.5 percent, to 498.45. India's second-biggest motorcycle maker said Nov. 1 that sales fell 31 percent in October to 191,840 vehicles. Bajaj gained 13.85 rupees, or 2.6 percent, to 544.90. Omaxe Ltd. (OAXE IN) gained 3.45 rupees, or 6 percent, to 61. The fourth-worst performer in the Bombay Stock Exchange's Realty Index this year said on Oct. 31 profit in the quarter ended Sept. 30 rose 27 percent to 203.80 million rupees. To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net

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