Oct. 25 (Bloomberg) -- India's Sensitive Index rose for the fourth day. Tata Steel Ltd., the world's sixth-largest maker of the alloy, gained on the expectation it will report an increase in quarterly profit, buoyed by sales to carmakers and construction companies.

``Steel companies may report strong earnings as they have raised prices,'' said Sandeep Neema, who helps manage about $610 million of equities at J.M. Financial Mutual Fund in Mumbai.

Dr. Reddy's Laboratories Ltd., India's biggest drugmaker, declined after saying second-quarter profit fell 4.5 percent on lower sales of its versions of Merck & Co.'s Zocor cholesterol treatment and prostate drug Proscar in the U.S.

The Bombay Stock Exchange's Sensex advanced 257.98 points, or 1.4 percent, to close at 18,770.89 at 3:30 p.m. local time. The S&P/CNX Nifty Index on the National Stock Exchange gained 72.8 points, or 1.3 percent, to 5,568.95. Nifty futures for October delivery climbed 1.6 percent to 5,567.50.

Tata Steel gained 73.5 rupees, or 8 percent, to 988.9. Net profit probably rose 5.8 percent to 11.64 billion rupees ($295 million), according to a median estimate of five analysts surveyed by Bloomberg News. The company reports earnings tomorrow.

Dr. Reddy's dropped 15.35 rupees, or 2.4 percent, to 614.6. Profit fell to 2.67 billion rupees. Net income was lifted by a 1.5 billion rupee tax reversal from its purchase of Germany's Betapharm Arzneimittel GmbH last year and a 256 million rupee currency gain.

``Dr Reddy's reported results below our and street expectations,'' analyst Sameer Baisiwala at Morgan Stanley said in a note to clients yesterday. Net profit, excluding the tax reversal, was 1.22 billion rupees, compared with its estimate of 1.9 billion rupees, Baisiwala said in the note.

Overseas funds purchased a net 7.77 billion rupees of Indian shares on Oct. 23, according to the latest figures from the Securities & Exchange Board of India's Web site.

The stock regulator was scheduled to hold a press conference in Mumbai today to give details on the outcome of a board meeting to approve new rules aimed at forcing overseas investors to register before buying stocks.

The following shares rose or fell. Stock symbols are in brackets after company names:

Ballarpur Industries Ltd. (BILT IN) rose 1.45 rupees, or 1.1 percent, to 139.1. India's biggest maker of writing and printing paper said first-quarter profit increased 26 percent to 739.7 million rupees.

Cipla Ltd. (CIPLA IN) fell 9.85 rupees, or 5 percent, to 186.75. India's third-biggest drugmaker said yesterday profit in the three months to Sept. 30 rose 6 percent to 1.91 billion rupees.

Maytas Infra Ltd. (MAY IN) surged 244.3 rupees, or 66 percent, to 614.3. The Indian construction company that sold 8.9 million shares at 370 rupees apiece began trading today.

Nicholas Piramal Ltd. (NP IN) added 7 rupees, or 2.5 percent, to 285.8. The Indian drugmaker said second-quarter group profit rose 58 percent to 847.7 million rupees.

NIIT Technologies Ltd. (NITEC IN) rose 13.65 rupees, or 4.1 percent, to 344.7. The Indian computer services provider controlled by the country's largest software trainer said second- quarter profit rose 28 percent to 344 million rupees in the three months ended Sept. 30.

TVS Motor Co. (TVSL IN) slid 2.2 rupees, or 3.9 percent, to 54.45. India's third-largest motorcycle maker yesterday said it posted a seventh consecutive decline in quarterly profit after higher borrowing costs damped sales. Net income fell 52 percent to 119.2 million rupees.

To contact the reporters on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net; Mrinalini Datta in New Delhi at mdatta1@bloomberg.net.

Last Updated: October 25, 2007 07:17 EDT