Aug. 21 (Bloomberg) -- India’s benchmark stock index rose, paring the weekly loss. Hero Honda Motors Ltd. led automakers higher after the government said monsoon rains had revived, easing concerns that a poor rainy season would dent growth.

Hero Honda, the nation’s biggest motorcycle maker, jumped the most in more than a month after the Meteorological Department said rains had increased in the past week. Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles and tractors, gained 3.5 percent. Bharat Heavy Electricals Ltd., whose turbines and generators light up three of every four homes in India, gained on reports that it has won a 26.3 billion rupees ($540 million) order.

“We are bullish on the market in the long term , the drought remains a short-term concern,” said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 228.51, or 1.5 percent, to 15,240.83, paring the weekly decline to 1.1 percent. The S&P CNX Nifty Index on the National Stock Exchange gained 1.7 percent to 4,528.80. The BSE 200 Index advanced 1.5 percent to 1,865.38.

Hero Honda rose 4.9 percent to 1,482.9 rupees, extending yesterday’s 4 percent gain. It was the stock’s steepest advance since July 17. Forty percent of Hero Honda’s sales come from rural areas. Mahindra advanced 3.5 percent to 800.6 rupees, its highest since Aug. 7. Bharat Heavy gained 2.1 percent to 2,301.8 rupees, its best close since Aug. 5.

Damaged Crops

India’s monsoon, the main source of irrigation for the nation’s 235 million farmers, revived in the past week, helping ease dry weather that’s caused drought and damaged crops of rice, oilseeds and sugar cane, said S. Kaur, director at the India Meteorological Department in New Delhi.

Showers were 2 percent below average in the week ended Aug. 19 compared with 56 percent in the previous week. The deficit in the season started June 1 narrowed to 26 percent from 29 percent, she said.

The monsoon season, which brings about three-quarters of the nation’s annual rainfall, may be the driest in seven years, with more than a third of the nation’s 626 districts declaring drought, the weather bureau said last week.

The Sensex has dropped 2.7 percent this month on concern low rainfall would reduce farm output and cut economic growth.

Jain Irrigation Systems Ltd. (JI IN) rose 3 percent to 717 rupees. The world’s second-biggest maker of irrigation equipment expects profit to double this year as a drought-struck India increases spending on projects aimed at raising farm output.

DLF, Indiabulls

Gains will be driven by a 30-to-50 percent jump in sales of drip irrigation products, Managing Director Anil Jain said in an interview in Mumbai yesterday. Profit was 1.23 billion rupees in the year ended March 31, 2009, on sales of 21.9 billion rupees.

DLF Ltd., the biggest real estate developer, led gains among property companies after it won the bidding in the nation’s largest land sale in two years to develop a project for homes, offices and a golf course near New Delhi, a government official said.

Indiabulls Real Estate Ltd., the third-biggest developer by market value, rose after the company said it was the highest bidder to redevelop government offices in India’s commercial hub.

DLF rose 2 percent to 382.3 rupees. Indiabulls jumped 9.4 percent to 256.15 rupees.

Share Sale

Puravankara Projects Ltd., a home builder, rose to the highest level in 10 months on speculation it has completed a proposed share sale. The stock climbed 8.7 percent to 120.95 rupees. The shares two-day advance of 30 percent is its steepest since March 2008.

The company hasn’t yet sold any shares, Ravi Ramu, a company director, said in an interview today aired by Mumbai-based CNBC TV18. Puravankara said in a May 25 regulatory filing that it aimed to raise 7.5 billion rupees ($154 million) selling stock to foreign investors.

The following stocks were among the most active on the exchange:

EIH Ltd. (EIH IN) rose 5.3 percent to 113.7 rupees. The company that runs the Oberoi brand of hotels in India said first-quarter profit declined 50 percent in an “unprecedented downturn” for tourism. Profit after tax was 191 million rupees, compared with 380 million rupees last year, the company said in an e-mailed statement.

Housing Development Finance Corp. (HDFC IN) gained 2 percent to 2,440.7 rupees. The nation’s largest mortgage company said it raised 43 billion rupees selling non-convertible bonds and warrants.

Unichem Laboratories Ltd. (UL IN) soared 6.6 percent to 226.4 rupees. The drugmaker said it has obtained U.S. Food and Drug Administration approval for its anti-hypertension Bisoprolol fumarate tablets.

Wockhardt Ltd. (WPL IN) advanced 1.6 percent to 162.2 rupees. The drugmaker, which is being helped by lenders to overcome heavy debt, said it sold its veterinary business.

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

Last Updated: August 21, 2009 07:25 EDT