Most Indian stocks advanced, led by industrials and automakers.

Bharat Heavy Electricals Ltd. (BHEL), the nation’s biggest maker of power equipments, rallied the most on the benchmark S&P BSE Sensex. (SENSEX) Tata Motors Ltd., owner of Jaguar Land Rover, climbed to a two-week high. NTPC Ltd., India’s biggest power producer, gained the most in two weeks. State Bank of India advanced to a four-year high.

About three stocks rose for every two that dropped on the Sensex, which slid 0.1 percent to 28,403.39 at 11:11 a.m. in Mumbai. Reserve Bank of India Governor Raghuram Rajan held the main rate at 8 percent yesterday and said he may cut it early next year. Calls for a rate cut had intensified as economic expansion slowed in the September quarter and inflation eased to below Rajan’s goal amid falling oil costs. He’s seeking to keep consumer-price growth within 6 percent by January 2016.

“We are not seeing a very dramatic and a steep rate-cut cycle to begin anytime soon,” P. Phani Sekhar, a fund manager at Angel Broking Ltd., said in a Bloomberg TV India interview today. “We need to see how inflation behaves as the favorable base wears off.”

BHEL, Mahindra

Bharat Heavy jumped 3.9 percent, extending this year’s rally to 59 percent. Tata Motors advanced 1.2 percent. Mahindra & Mahindra Ltd. (MM), India’s largest tractor maker, increased 1.3 percent, ending a two-day decline. Maruti Suzuki India Ltd., the nation’s biggest carmaker, added 1.1 percent.

NTPC rose 1.2 percent, the most since Nov. 17. State Bank of India (SBIN) added 1 percent. Axis Bank Ltd. (AXSB) climbed to a record. The shares have surged 92 percent this year, the second-best performer on the Sensex after Maruti Suzuki.

Foreigners bought a net $ 64 million of domestic shares on Dec. 1, taking this year’s inflow to $ 16.4 billion.

The Sensex has risen 34 percent this year and is valued at 15.8 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.1.

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