Most Indian stocks climbed, led by industrials and utilities, as emerging-market equities gained on optimism the Federal Reserve will delay raising borrowing costs.
Three stocks gained for each that fell on the S&P BSE 100 Index at the close in Mumbai. Volumes on the NSE Nifty Index of the country’s 50 biggest companies were 32% below the 30-day average. The MSCI Emerging-Market Index headed for the biggest gain since September 9.
The developing-nation stocks gauge climbed after tumbling 2.6% last week as futures showed an 80% probability the Fed will refrain from raising rates this week. There’s just a 20% chance the authority will increase borrowing costs at its two-day meeting starting today, according to data compiled by Bloomberg based on futures. The Bank of Japan is due to review its policy tomorrow.
Low interest rates in the US and other developed nations have lifted demand for riskier emerging-market securities. Global funds have bought $3.4bn of Indian stocks in the current quarter, the most since the three months ended March 2015, as the passage of key economic reforms and improvement in public finances bolstered sentiment. The Sensex and the Nifty gauges have risen in seven of 10 sessions in September.
“Our domestic macros are improving and there’s ample liquidity supporting the market right now,” Kaushik Dani, a fund manager at Karvy Stock Broking in Mumbai, said by phone. “In the near term, investors are focused on the Fed and BoJ meetings, and any major move will happen after that.”
Reliance Industries, owner of the world’s largest refining complex, climbed to its highest level since June 2014.  
Tata Consultancy Services posted its biggest jump since August 1 after tumbling 6.5% last week, its fourth straight week of declines.  
NTPC and Power Grid Corp of India, the nation’s largest state-owned utilities, were among the best performers on the Sensex. Ceat surged 6%, pacing a rally among tiremakers, as investors bet the drop in natural-rubber costs will aid profitability. MRF soared to a one-year high, while Apollo Tyres climbed to a 19-month high. Domestic rubber prices have decreased by Rs25,000 ($373) a tonne from a high of Rs144,000 a tonne a few months ago, Equinomics Research & Advisory Pvt wrote in a report yesterday.
ICICI Bank rose for the first time in three days. The lender will sell up to 181.34mn shares in the first-time share sale of ICICI Prudential Life Insurance. The IPO, the nation’s biggest in six years, opened yesterday.  
Sharp India soared by the daily limit of 20% after the company said it is considering forming a panel of independent directors to give a recommendation on the mandatory open offer made by Sharp Corp, which owns 75% of the local unit.  
United Breweries Holdings surged by the 20% limit for a second day. The company owns about 11% of United Breweries, whose shares rose the most in 14 months after Heineken International bought 1.85mn shares of the company.