July 31 (Bloomberg) -- Indian stocks rose to their highest in more than a year, led by Sterlite Industries (India) Ltd., after commodities prices jumped. Reliance Infrastructure Ltd. gained after its first-quarter profit beat estimates. Sterlite, the nation’s biggest copper and zinc producer, increased 4.4 percent. Hindalco Industries Ltd., the largest aluminum miner, advanced 2.1 percent. Tata Steel Ltd., the No. 1 manufacturer of the alloy, gained 2.6 percent. Reliance Infrastructure, India’s third-largest utility, rose 1.9 percent. “The bottom is clearly past us; the signs are encouraging,” said Mohit Mirchandani, head of equity investment at Taurus Mutual Fund in Mumbai, who helps manage $127 million in assets. “We have a positive bias, but we need to wait for the next quarter to see more evidence of a recovery. The markets are fairly valued at the moment.” The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 295.83, or 1.9 percent, to 15,683.79 at 12:39 p.m. in Mumbai, set for its highest close since June 17, 2008. The gauge has climbed 8.2 percent this month and 2 percent this week as 20 of the 27 companies on the measure that have reported results beat analysts’ expectations. There are 30 companies in the gauge. The S&P CNX Nifty Index on the National Stock Exchange added 1.6 percent to 4,642.7. The BSE 200 Index increased 1.6 percent to 1,911.68. Sterlite jumped 4.4 percent to 654.5 rupees. Hindalco advanced 2.1 percent to 95.8 rupees. Tata Steel Ltd. gained 2.6 percent to 463.7 rupees. Sesa Goa Ltd., India’s biggest exporter of iron ore, soared 4.2 percent to 240.5 rupees. Commodities rose the most in more than four months, led by energy and grains, as signs of improving economic growth boosted speculation that raw-material demand will climb. Consumption Rebound Commodities also advanced on speculation that the worst of the global recession has passed and consumption of crops, metals and fuel will rebound. Crude oil has jumped 50 percent in 2009, and copper surged 82 percent. The Reuters/Jefferies CRB Index leapt 3.9 percent to 253.14, the steepest gain since March 19. Eighteen of 19 components in the commodity gauge advanced. A measure of six metals, comprising copper, aluminum, lead, tin, zinc and nickel, added 4 percent yesterday in London. Copper in Shanghai jumped as much as 4.3 percent to 44,980 yuan a ton after base metals soared in London and New York yesterday. Aluminum rose as much as 3.6 percent to 15,160 yuan a ton. Earnings Rally Reliance Infrastructure added 1.9 percent to 1,206.3 rupees. It reported a 25 percent increase in first-quarter profit, beating estimates, after selling more electricity and its engineering business grew. Net income climbed to 3.17 billion rupees ($66 million) in the three months ended June 30, from 2.53 billion rupees a year earlier, the Mumbai-based company said. Tata Motors Ltd., India’s biggest truckmaker and owner of Jaguar Land Rover Ltd., jumped 5.7 percent to 417.8 rupees. State Bank of India Ltd., India’s biggest lender, gained 4.8 percent to 1,806.2 rupees. Both companies reported first-quarter results this week that beat analysts’ forecast. “Better-than-expected earnings indicate an improvement in the overall demand environment,” said Apurva Shah, head of research at Prabhudas Liladher Pvt. in Mumbai. “The market is adjusting to this fact. This momentum will continue for at least the next two quarters.” Reliance Overseas funds bought a net 1.39 billion rupees of Indian stocks on July 29, the Securities & Exchange Board of India said on its Web site. The funds have bought 341.9 billion rupees of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008. U.S. stocks rose and the Standard & Poor’s 500 Index approached a nine-month high as companies posted better-than- estimated results and jobless claims held below June levels. Asian stocks climbed, sending the MSCI Asia Pacific Index to a fifth monthly gain, as better-than-expected earnings and a rally in commodities lifted confidence the global economy is headed toward recovery. Reliance Industries Ltd., India’s most valuable company, added 1.8 percent to 1,934.9 rupees after reports that it may gain as untapped deposits in deep waters off the east coast could triple natural gas reserves in the area, Sanford C. Bernstein & Co. said. Reliance Industries’ stock has climbed 58 percent this year compared with a 62 percent rise in the benchmark Sensitive Index. Reliance Industries has invested $4.7 billion in the KG-D6 area in the Bay of Bengal, which started production on April 2. Untapped Gas A further 60 trillion cubic feet of gas is believed waiting to be found in addition to the 35 trillion discovered since 2002, Neil Beveridge, an analyst at Bernstein, said in a report e- mailed yesterday. Reliance Industries, controlled by billionaire Mukesh Ambani, and state-owned Oil & Natural Gas Corp. dominate the fields in the Bay of Bengal area, he said. Oil & Natural Gas Corp., India’s biggest energy explorer, soared 6.4 percent to 1,171 rupees. “Reliance has the best acreage and it is likely that another Dhirubhai-sized gas field or two remains to be discovered,” he said, referring to fields named for Dhirubhai Ambani, founder of the Reliance empire. “This could provide an upside of $23 billion in value to the stock.” To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net.

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