Stocks close at 11-month high

Indian stocks swung between gains and losses after the benchmark gauge advanced to an 11-month high. Energy companies and metal producers climbed while industrials declined. Oil & Natural Gas Corp. climbed to a six-month high as the government is said to have allowed refiners to increase kerosene prices every month, a move that would ease the subsidy burden borne by the largest explorer. A gauge of energy companies climbed to a 11-month high. Tata Steel Ltd was the best performer on the S&P BSE Sensex. Larsen & Toubro and Maruti Suzuki India dropped more than one per cent each.

The Sensex closed little changed after changing direction at least 15 times. The gauge has risen 21 per cent from a low in February, fitting the definition of a bull market, helped by forecasts for above-normal rain after back-to-back droughts and a recovery in company earnings.

The index's relative strength index has risen to 70, a level some investors see as a signal to sell, and its valuation is the most expensive in five years. "We see some consolidation and profit-booking happening at current levels as the rally has been quick," D K Aggarwal, chairman of SMC Investments Pvt. in New Delhi, said by phone. "Investors are focusing on the next session of parliament and the results season. Those events will set the market's tone in the near term."

Bloomberg