Nov. 9 (Bloomberg) -- Indian stocks rose, extending a rally on the benchmark index to four days, led by Reliance Industries Ltd. after the Economic Times said it’s close to announcing an overseas acquisition.

Tata Steel Ltd., the biggest producer of the alloy, gained 1.7 percent after Prime Minister Manmohan Singh said he saw “clear signs” the economy was growing, allowing the government to cut back on its stimulus spending. Reliance Industries, India’s most valuable company, rose 3.5 percent.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 349.43, or 2.2 percent, to 16,507.71, according to preliminary closing prices. The S&P CNX Nifty Index on the National Stock Exchange rose 2.2 percent to 4,902.25. The BSE 200 Index increased 2.2 percent to 2,055.98.

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

Last Updated: November 9, 2009 05:12 EST