Indian stocks rose, with the benchmark Sensitive index at a two-month high after the South Asian nation cut interest rates and unveiled a stimulus package to revive an economy growing at its slowest pace in six years. Lenders led advances. State Bank of India, the nation’s largest, added 2.2 percent, its highest in more than two months. ICICI Bank Ltd., the second-biggest, rose 6.1 percent, a three- month high. The Reserve Bank of India on Jan. 2 lowered the repurchase rate by one percentage point to 5.5 percent and the reverse- repurchase rate by the same margin to 4 percent. It was the fourth interest rate cut in three months. India also unveiled a second stimulus package to counter the effect of the global slump. The measures announced on Jan. 2 follow a 200-billion rupee ($4 billion) spending plan unveiled last month. “The rate cuts were sharper than we had expected,” said Kenneth Andrade, head of investments at IDFC Asset Management Co. who oversees assets worth $1.8 billion. “The move is positive for capital markets.” The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 317.38, or 3.2 percent, to 10,275.60. The benchmark posted its highest close since Nov. 10. The S&P CNX Nifty Index on the National Stock Exchange added 2.5 percent to 3,121.45. The BSE 200 Index advanced 2.8 percent to 1,230.05. Nifty futures for January delivery added 2.6 percent to 3,133.90. Rate Cut State Bank added 2.2 percent to 1,360.80 rupees, its highest since Oct. 22. ICICI climbed 6.1 percent to 499.90 rupees, its highest since Oct. 3. Housing Development Finance Corp., the nation’s biggest home-mortgage provider, added 5.5 percent to 1,630.15 rupees. State governments will be allowed to raise an additional 300 billion rupees in the year to March 31 to build roads, schools and hospitals. The government also more than doubled the amount overseas investors can hold in local bonds and extended capital to the nation’s banks. Oil & Natural Gas Corp., India’s biggest oil producer, rose 6.6 percent to 725.25 rupees, the most since Nov. 10. Sterlite Industries (India) Ltd., the biggest copper and zinc producer, gained 9.8 percent to 301.50 rupees, the most since Dec. 4. Copper and zinc futures jumped by the daily limit in Shanghai, tracking moves in London. Oil rose a third day with February futures climbing 5.1 percent, to $48.68 a barrel in electronic trading on the New York Mercantile Exchange. The following companies were among India’s biggest movers. Stock symbols are in brackets. ACC Ltd. (ACC IN) rose 13.65 rupees, or 2.8 percent, to 507.55. India’s biggest cement maker’s full-year sales rose 5 percent to 20.86 million metric tons this year, compared with 19.88 million tons a year earlier, it said in a Jan. 2 statement. Hindustan Zinc Ltd. (HZ IN) gained 27.05 rupees, or 7.6 percent, to 384.25. India’s biggest producer of the metal raised lead and zinc prices on Jan. 3 to match global rates. Zinc prices were raised by 11 percent to 70,100 rupees a metric ton, the company said on its Web site. Satyam Computer Services Ltd. (SCS IN) dropped 10.05 rupees, or 5.7 percent, to 167.15. India’s fourth-largest software- services provider fell after a report the company is in merger talks with smaller rivals including HCL Technologies Ltd. The stock has fallen 26 percent since Satyam on Dec. 16 announced and then hours later scrapped a $1.6 billion acquisition of unrelated businesses tied to its Chairman Ramalinga Raju.

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