India’s key stock index advanced for a fourth day, its longest winning run in two months. ICICI Bank Ltd. led a rally in financial stocks on speculation gains from their bond holdings will boost earnings. ICICI, the nation’s second-largest lender, added 4.7 percent after India’s 10-year bonds gained on optimism a central bank move to cut the amount of cash lenders must hold in reserve will give them more funds to buy debt. Sterlite Industries (India) Ltd., the No. 1 copper and zinc producer gained 4.6 percent after prices of the metals rose. “Banks will report good earnings, boosted by treasury gains on their bond portfolios,” said Jayesh Shroff, who helps manage about $4.7 billion at SBI Asset Management Co. in Mumbai. The banks will report earnings this month. The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 60.33, or 0.6 percent, to 10,335.93. The index posted its longest winning streak since Nov. 4. The National Stock Exchange’s S&P CNX Nifty Index declined 8.65, or 0.3 percent, to 3,112.80. The BSE 200 Index added 0.5 percent to 1,235.79. ICICI added 4.7 percent to 523.45 rupees, its highest since Oct. 1. HDFC Bank Ltd., the No. 3 lender, rose 5.4 percent to 1,100.40 rupees. Government bonds completed their biggest quarterly gain in at least a decade on Dec. 31. The benchmark 10-year yields fell 3.4 percentage points in the past three months, the most in such a period since Bloomberg started compiling data in 1998. They fell 2.54 percentage points in 2008, the biggest yearly decline since 2001. Metals Gain Sterlite gained 4.6 percent to 315.50 rupees, the highest since Oct. 14. Hindustan Zinc Ltd., India’s largest producer of the metal, jumped 9.5 percent to 420.75 rupees, the most since Nov. 10. Copper jumped to the highest in almost a month. London Metal Exchange copper advanced to as much as $3,340 a metric ton, the highest since Dec. 11. Among other LME-traded metals, zinc added 0.6 percent to $1,308. Overseas funds bought a net 1.14 billion rupees ($23 million) of Indian stocks on Jan. 2, the nation’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: Cement makers: Grasim Industries Ltd. (GRASIM IN), India’s third-biggest cement maker, jumped 100.05 rupees, or 8.1 percent, to 1,334.85. ACC Ltd. (ACC IN), the largest, added 35.90 rupees, or 7.1 percent, to 543.45. India Cements Ltd. (ICEM IN) surged 12.7 rupees, or 12 percent, to 118.95, the most since Oct. 31. India’s cement demand expanded 12 percent in November and preliminary data for December is showing an even stronger trend, with large producers reporting 12-20 percent growth in sales, Macquarie said in a note to clients today. Bharti Airtel Ltd. (BHARTI IN) slid 28.65 rupees, or 4.2 percent, to 657. India’s largest wireless operator will start operations in Sri Lanka on Jan. 12 after a nine-month delay. Satyam Computer Services Ltd. (SCS IN), the nation’s No. 4 software developer, rose 11.8 rupees, or 7.1 percent, to 178.95. Tech Mahindra Ltd. (TECHM IN) has proposed an all-stock merger with Satyam Computer Services Ltd., the Economic Times reported, citing an unidentified person with knowledge of the deal. Satyam denied the merger report in a statement through the Bombay Stock Exchange today. Rajesh Chandiramani, a spokesman at Tech Mahindra declined comment on the report. Tech Mahindra added 10.4 rupees, or 3.7 percent, to 294.30.

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