Indian Stocks Climb; HDFC Lead Advance

Indian stocks rose, with the benchmark Sensitive index snapping a seven-day, 21 percent drop, as some investors judged recent declines excessive.
Reliance Industries Ltd., India’s most valuable company, added 4.9 percent, also halting a seven-day slump. HDFC Bank Ltd., the nation’s third-largest lender, added 3.1 percent.
“The market was looking very oversold,” said Jayesh Shroff, who helps manage the equivalent of $2.4 billion in equities at SBI Asset Management Co. in Mumbai.
The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, rose 307.43, or 3.6 percent, to 8,758.44 as of 12:14 p.m. local time. The S&P CNX Nifty Index on the National Stock Exchange added 88.70, or 3.5 percent, to 2,641.85. The BSE 200 Index climbed 2.7 percent to 1,034.57. Nifty futures for November delivery added 3.6 percent to 2,641.80.
The Sensex has dropped 57 percent this year as global financial companies’ losses and writedowns from the collapse of the U.S. subprime-mortgage market neared $1 trillion, eventually toppling Lehman Brothers Holdings Inc.
Reliance gained 4.9 percent to 1,107.45 rupees, the most in almost two weeks. HDFC Bank added 3.1 percent to 846.50 rupees, its steepest advance since Nov. 4. HDFC’s 14-day relative strength index, which measures how rapidly prices rose or fell during the period, dropped below 30 yesterday. Some investors regard readings at 30 or less as a signal to buy.
Overseas funds sold a net 2.08 billion rupees ($51.6 million) of Indian stocks on Nov. 19, increasing outflows from equities this year to $13.1 billion, 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:
Bajaj Hindusthan Ltd. (BJH IN) gained 0.55 rupee, or 1.3 percent, to 43.45. India’s biggest sugar maker expects its fourth-quarter profit to climb from the previous three months because of higher prices, Chief Executive Officer Rakesh Bhartia said.
India Infoline Ltd. (IIFL IN) gained 1.75 rupees, or 4.4 percent, to 41.95, extending yesterday’s 4.2 percent advance. The local stock brokerage and financial services company rose after saying yesterday it may buy back shares.
Oil & Natural Gas Corp. (ONGC IN) rose 24.9 rupees, or 3.8 percent, to 676. India’s biggest explorer said oil will return to $100 a barrel, justifying its 1.4 billion-pound ($2.1 billion) takeover of the U.K.’s Imperial Energy Plc.