Nov. 10 (Bloomberg) -- India’s stocks rose for the fifth day, led by Reliance Industries Ltd. after the refiner found oil and reports of a meeting between Chairman Mukesh Ambani and his brother signaled a resolution to their dispute.

Reliance, India’s most valuable company, gained 1.8 percent NMDC Ltd., India’s largest iron-ore producer, jumped 14 percent after the government reiterated its plan to sell a stake in the Hyderabad-based company. ICICI Bank Ltd., the country’s second- biggest lender, added 1.3 percent after its rating was upgraded.

“If the dispute between the Ambani brothers get resolved, then it will be a positive for the markets,” said Deven Choksey, chief executive officer of K.R. Choksey Shares & Securities, who manages about $118 million for wealthy individuals.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, climbed 119.42, or 0.7 percent, to 16,618.14 at 12:08 p.m. in Mumbai. The S&P CNX Nifty Index on the National Stock Exchange rose 0.8 percent to 4,935.70. The BSE 200 Index increased 0.8 percent to 2,071.91.

Reliance Industries gained 1.8 percent to 2,061.1 rupees. The company said it found oil in a block in the Cambay basin in the western state of Gujarat.

The Daily News & Analysis reported the billionaire Ambani brothers met in Mumbai to discuss their disagreement over gas supplies. Reliance Natural Resources Ltd., owned by Anil Ambani, advanced 3.1 percent to 74.35 rupees. Manoj Warrier, a spokesman for Reliance Industries, declined to comment, while Reliance Natural Resources said rumors of an out-of-court settlement are “completely baseless and speculative.”

Share Sale

NMDC, which is 98.38 percent owned by the government, rose 14 percent to 409.55 rupees. Prime Minister Manmohan Singh’s government last week pledged to cut holdings in its profitable companies to 90 percent, accelerating divestments after a five- year slowdown. The government may raise 256 billion rupees ($5.5 billion) from its publicly traded companies, Standard Chartered Bank said. The state controls unlisted firms worth $144 billion, according to Morgan Stanley.

NMDC and other government-owned stocks may gain from a new rule by the Securities and Exchange Board yesterday that will allow publicly traded companies to sell shares through auctions, rather than prices being set within prefixed bands.

ICICI Bank added 1.3 percent to 900.1 rupees after its rating was upgraded to “outperform” at Reliance Equities International Pvt., which said the company may report annual profit growth of 18 percent from fiscal 2009 through 2011.

Overseas funds bought a net 6.96 billion rupees ($148.17 million) of Indian stocks Nov. 6, the Securities and Exchange Board of India said on its Web site. The funds have bought 691.1 billion rupees of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net.

Last Updated: November 10, 2009 01:51 EST