India’s benchmark stock index rose to a one-month high as industrials climbed amid optimism Prime Minister Narendra Modi will accelerate policy changes aimed at spurring Asia’s third-largest economy.

Bharat Heavy Electricals Ltd. (BHEL), India’s biggest maker of power equipments, jumped to a three-month high. State Bank of India rallied to its highest level since Sept. 18, and mortgage lender Housing Development Finance Corp. (HDFC) jumped the most in a week. Dr Reddy’s Laboratories Ltd. (DRRD) increased for a third day.

The S&P BSE Sensex (SENSEX) rose 0.1 percent to 26,859.3 at 11:42 a.m. in Mumbai, set for its highest close since Sept. 22. The gauge added 2.8 percent last week, ending four weeks of losses, as Modi lifted price curbs on diesel, raised natural-gas costs and moved closer to ending the state’s monopoly on mining and selling coal. Modi’s Bharatiya Janata Party came first in two state elections, fueling optimism he now has a stronger hand to push ahead with tougher steps to boost economic growth.

“This country is in the process of rediscovering a long-lost mojo,” Dipen Sheth, head of institutional research at HDFC Securities Ltd. in Mumbai, told Bloomberg TV India today. “If we get things right this time, we are in for at least five years of a good ride, may be 10.”

The Sensex has increased 27 percent this year, the best performer among the world’s 10 biggest markets. International investors bought a net $ 18.8 million of Indian stocks on Oct. 21, taking this year’s inflows to $ 13.3 billion, the most among eight Asian markets tracked by Bloomberg. Indian stock markets and banks were closed for a holiday on Oct. 24.

Jindal Probe

Bharat Heavy surged 2.9 percent to 247.45 rupees, taking this year’s gains to 40 percent. Gail India Ltd., the nation’s largest natural-gas supplier, added 1.4 percent after climbing 7.5 percent last week.

Dr. Reddy’s added 2.1 percent. State Bank climbed 1.4 percent. Housing Development Finance added 1.8 percent, rising for the sixth day.

Jindal Steel & Power Ltd., controlled by the family of billionaire Savitri Jindal, plunged 5.5 percent. The Central Bureau of Investigation has registered a preliminary enquiry against company officials and the environment ministry into mining-related irregularities, CBI spokeswoman Kanchan Prasad said in an Oct. 25 phone interview.

The company became aware of the probe through media reports and would respond when it receives queries from investigative authorities, it said in an e-mailed statement.

Hindustan Unilever Ltd. (HUVR) may say its second-quarter profit rose to 9.96 billion rupees ($ 163 million) from 9.14 billion rupees a year earlier, according to the median of 33 analyst estimates in a Bloomberg survey. The stock fell 0.7 percent.

Five of the nine Sensex companies that have posted results so far have beaten or matched estimates, according to data compiled by Bloomberg. Forty-six percent of the gauge’s members that posted earnings for the June quarter exceeded or matched forecasts. That compares with 60 percent in the previous three months, the data show.

The Sensex trades at 15.4 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 10.6.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at

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