Indian stocks advanced to a record for the fifth day as Prime Minister Narendra Modi and President Barack Obama reached an agreement to spur nuclear energy projects and pledged greater co-operation in defense and economic ties.

Larsen & Toubro Ltd. (LT) climbed to its highest level since July after saying the nuclear deal opens up “large potential” for the engineering company. Moser Baer India Ltd., a maker of solar-energy equipment, jumped 13 percent. Bharat Electronics Ltd. surged to a record, leading defense-related shares higher.

The S&P BSE Sensex (SENSEX) rose 0.3 percent to 29,366.93 at 10:51 a.m. in Mumbai. Obama and Modi said they will streamline rules that make it difficult for U.S. companies to do business in the Asian nation. The two leaders said they had made a breakthrough meant to spur a surge in civilian nuclear projects, while Modi also won backing from the U.S. for a $ 160 billion solar energy program. Markets in India were closed yesterday for a holiday.

“Obama’s visit is a sign of India’s increasing influence and importance on the world stage,” Adrian Lim, a fund manager at Aberdeen Asset Management Plc, said by e-mail. “Since Modi’s landslide election victory, the improvements made by the government have added to the perception that India is the next untapped market for U.S. companies.”

President Obama told a group of chief executives Monday the U.S. commercial ties with India are partly defined by its untapped potential and said initiatives underway will generate more than $ 4 billion in trade and investment.

Larsen & Toubro added 2 percent in an eighth day of gains. Tata Motors Ltd. (TTMT), the owner of Jaguar Land Rover, climbed to a record, while Axis Bank Ltd. (AXSB) increased 1.7 percent.

Solar, Defense

Moser Baer’s advance today took this month’s gains to 45 percent. Indosolar Ltd., a maker of solar photo-voltaic cells, surged by the daily limit of 4.7 percent. The stock has surged 123 percent since Jan. 1. Suzlon Energy Ltd. added 2.2 percent.

Bharat Electronics, which makes communication equipment and night-vision equipment, rallied 6.2 percent. BEML Ltd., (BEML) a maker of earth-moving equipments and army trucks, was headed for its highest level since January 2011. Pipavav Defence & Offshore Engineering Co. (PIPV) added 4.3 percent.

Maruti Suzuki India Ltd. (MSIL) may report today third-quarter profit rose 31 percent to 8.93 billion rupees ($ 145 million), according to the median estimate of 36 analysts in a Bloomberg survey. The shares rose 1.4 percent.

Titan Co. Ltd. (TTAN), the jewelry retailer controlled by the Tata Group, may report quarterly net income rose 16 percent to 1.93 billion rupees, according to the median forecast of 21 analysts surveyed by Bloomberg. The shares gained 1.1 percent.

The Sensex rallied 4.1 percent last week, the most since the five days ended June 6. International investors bought a net $ 107 million of Indian stocks on Jan. 22, extending this year’s inflow to $ 890 million, the second-highest among eight Asian markets tracked by Bloomberg, after Taiwan.

The Sensex has gained 6.9 percent this year and is valued at 16.3 times projected 12-month earnings, the most expensive in four years. That compares with the MSCI Emerging Markets Index’s multiple of 11.6.

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