The S&P BSE Sensex Index rose 0.5% to 32,382.46 points in Mumbai, led by Tata Steel.
An index of metals companies climbed to its highest level in almost three years. Private sector lender ICICI Bank and Reliance Industries gave the biggest boost to the broad gauge. The NSE’s Nifty 50 Index gained 0.6% 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% rally in iron ore since mid-June to top $70 a metric tonne. Copper rose 2%, 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.
“At home, strong results from Vedanta is adding to the optimism generated by a global rally in commodity prices.”
Vedanta jumped 2.3% to the highest level since September 2014, adding to a 3.7% gain on Tuesday after the company reported net income more than doubled for the first quarter.
Suzlon Energy +1.2%, wins order from Alfanar Group. GE T&D India +20%, biggest gain since 2009; swings to profit for 1Q from loss. Tata Metaliks -5.4%, 1Q net income declines.
Meanwhile the rupee yesterday pared all the losses and closed little changed against the US dollar amid thin trade ahead of the outcome of a Federal Open Market Committee (FOMC) meeting.
The rupee closed at 64.37 a dollar, up 0.02% from its Tuesday’s close of 64.38.
The rupee opened at 64.43 a dollar and touched a high and a low of 64.39 and 64.45 respectively.
According to a Bloomberg report, the US Federal Reserve is expected to keep rates on hold, traders are looking for comments that it could make on its balance sheet reduction plan.
The 10-year bond yield closed at 6.444%, compared to its previous close of 6.43%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 5.6%, while foreign investors bought $8.69bn and $16.87bn in local equity and debt markets, respectively.
Asian currencies were trading lower. South Korean won was down 0.34%, Taiwan dollar 0.08%, Malaysian ringgit 0.08%, Thai baht 0.07%, China renminbi 0.05%, Indonesian rupiah 0.04% and Singapore dollar 0.04%. However, China offshore spot was up 0.08%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.186, up 0.14% from its previous close of 94.054.