Most Indian stocks climbed, with the benchmark index trading near a record, as metal producers and lenders advanced.

Sesa Sterlite Ltd., the nation’s biggest copper producer, climbed to its highest level in 27 months, the best performer on the S&P BSE Sensex. Bank of India jumped 3 percent, helping a gauge of lenders rally for a ninth day, the longest winning streak in about three years. A gauge of technology companies advanced for the first time in five days after Tata Consultancy Services Ltd. rebounded from a five-month low.

The S&P BSE Mid-Cap Index rose 2 percent, heading for its highest level since November 2010, extending a pre-election surge after the Bharatiya Janata Party-led bloc secured the largest victory in 30 years, putting BJP leader Narendra Modi in a position to take steps to boost the economy. Three stocks gained for every two that fell on the Sensex, which added less than 0.1 percent to 24,368.35 at 12:27 p.m.

“Cyclicals are likely to outperform as we get closer to a recovery,” Ridham Desai, managing director and head of India research at Morgan Stanley, said in an interview to Bloomberg TV India today. “We see more upside in the midcaps than in the large caps.” The Sensex may reach 31,000 in the next 12 months if the new government boosts economic growth through “quick policy response,” he said.

The Sensex rose 1 percent to a record 24,363.05 yesterday. The value of Indian equities has climbed by $ 412 billion, or 41 percent, since the BJP named Modi as its candidate for prime minister on Sept. 13. Companies expected to benefit most from a revival in the economy have been the biggest gainers. That’s a turnaround from the previous three years, when investors bought so-called defensive shares, such as drugmakers and producers of consumer goods.

Sesa, Tata

India’s economic growth slowed to 4.5 percent in the year ended March 2013, the weakest in 10 years, and the government estimates a 4.9 percent rate in the year that ended March 31.

Sesa Sterlite surged 5.8 percent, set for the highest level since Feb. 21, 2012. Tata Steel advanced 3.9 percent to a two-year high. The BSE Metal Index headed for the highest level since March 2012.

Overseas investors bought a net $ 627.8 million of Indian shares when Modi was elected on May 16, the largest one-day inflow since March 21, according to data compiled by Bloomberg. That took this year’s net purchases to $ 7.4 billion, the most among eight Asian markets tracked by Bloomberg.

The Sensex has climbed 15.1 percent this year and trades at 15.1-times projected 12-month earnings, the most expensive in three years. The MSCI Emerging Markets Index is valued at 10.7 times.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at

To contact the editors responsible for this story: Michael Patterson at Ravil Shirodkar, Phani Varahabhotla