Indian stocks rebounded from the steepest three-day loss in 15 months, led by Coal India Ltd., as Asian equities rallied amid eased concerns about a slowdown in global growth.

Coal India, the world’s biggest miner of the fuel, climbed the most in two weeks unions called off a two-day strike that had threatened to paralyze the nation. Tata Motors Ltd. (TTMT), owner of Jaguar Land Rover, gained for the first time in three days, while HDFC Bank Ltd. (HDFCB) climbed after report that it appointed bankers for a share sale.

The S&P BSE Sensex (SENSEX) added 1 percent to 27,175.34 at 11:55 a.m. in Mumbai, halting a three-day retreat of 3.5 percent. The strike by coal miners, India’s biggest walkout in four decades, shut down about half the output at the company, a monopoly. Prime Minister Narendra Modi’s cabinet in October issued an executive order that included a provision to allow private companies to enter into the mining and selling of the fuel, a move critical to boosting the nation’s coal output.

“The government seems determined to address many of the supply-side issues plaguing the economy,” Harshad Patwardhan, head of equities at JPMorgan Asset Management India Pvt., which manages $ 2.7 billion, told Bloomberg TV India today. “We have a reforms-oriented government and we have seen a lot of action over the last few weeks.”

The Sensex increased 30 percent in 2014, the most among the world’s 20 biggest markets after China, as Modi ended curbs on diesel prices and allowed more foreign investment in sectors such as defense. Last month, he passed executive orders to make it easier for companies to buy land and to allow more overseas investment in insurance after the parliament’s winter session ended without votes on several key bills.

Oil Rebounds

The MSCI Asia Pacific Index (MXAP) climbed 1 percent after U.S. equities rebounded yesterday and as West Texas Intermediate crude headed for a second day of gains from a five-year low.

Coal India and Tata Power Co. (TPWR), India’s biggest generator outside state control, rose 2 percent. Bharat Heavy Electricals Ltd. (BHEL), the biggest power-equipment maker, gained 2 percent. NTPC Ltd., the largest power producer, added 1.6 percent.

Tata Motors climbed 2.5 percent. Hindustan Unilever Ltd. (HUVR), India’s biggest household products maker, gained 1.9 percent, taking its four-day advance to 8 percent.

HDFC Bank rose 1.7 percent. The lender plans is to raise as much as 100 billion rupees from local and foreign investors selling shares, the Economic Times reported today. Bank of America-Merrill Lynch has been appointed to lead the sale, two people familiar with the matter said, ET reported.

Global investors sold a net $ 242 million of local shares on Jan. 6, taking this month’s net outflows to $ 119 million. Foreigners had bought $ 16 billion of stocks last year.

The Sensex is valued at 14.9 times projected 12-month earnings. The MSCI Emerging Markets Index’ trades at 11.1 times.

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