Indian Stocks Hit Record High on Global Rally as Metals Shine

TCG Asset Management Managing Director Chakri Lokapriya discusses his outlook for India's markets and economy. He speaks on 'Bloomberg Markets.' (Source: Bloomberg)

India’s benchmark equity index touched another record high as a broad-based rally in commodities including iron ore and copper helped metals companies advance.

The S&P BSE Sensex Index rose 0.5 percent to 32,382.46 in Mumbai, led by Tata Steel Ltd. An index of metals companies climbed to its highest level in almost three years. Private sector lender ICICI Bank Ltd. and Reliance Industries Ltd. gave the biggest boost to the broad gauge. The NSE’s Nifty 50 Index gained 0.6 percent to close above the 10,000 mark for the first time.

A resurgence in steelmaking in China, helped by the seasonal mid-year increase in production, has sparked a 30 percent rally in iron ore since mid-June to top $70 a metric ton. Copper rose 2 percent, extending a rally on Tuesday that lifted it to its highest close in more than two years.

“There is structurally a positive view on metals given the rising demand from China and other countries,” said Daljeet Singh Kohli, head of research with India Nivesh Securities Ltd. “At home, strong results from Vedanta is adding to the optimism generated by a global rally in commodity prices.”

Vedanta Ltd. jumped 2.3 percent to the highest level since September 2014, adding to a 3.7 percent gain Tuesday after the company reported net income more than doubled for the first quarter.

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