Stocks climb for 2nd day as global equities, oil rally

Stocks climbed for a 3rd day this week as Asian stocks joined a global recovery and crude prices advanced. Dr Reddy's Laboratories was the best performer on the S&P BSE Sensex. Larsen & Toubro, the most valuable engineering firm, rose to a one-month high. Oil & Natural Gas Corp climbed the most in six months and Hero MotoCorp gained for a fourth day. ICICI Bank, the country's biggest private lender, climbed 2.8 per cent.

The Sensex added 1.1 per cent at the close in Mumbai. The gauge has advanced 2.9 per cent this week as global stocks gained nearly as fast as the losses that sent them into a bear market last week. The focus has shifted to the Budget on February 29, as investors seek clarity on the government's plan to lower the corporate tax rate and phase out tax exemptions.

Oil extended gains above $31 a barrel as Iran supported a proposal by Saudi Arabia and Russia to freeze production at near-record levels, without saying whether it would curb its own output. Crude's rally coupled with the Federal Reserve's acknowledgment of global market swings has underpinned the recovery. The MSCI Asia Pacific Index jumped 2.2 per cent.

Dr Reddy's jumped 4.8 per cent, the most since September 28. Sun Pharmaceutical Industries climbed to the highest price since February 1. Lupin added 2.7 per cent.

Larsen & Toubro added 2.4 per cent, taking this week's advance to nine per cent. Oil & Natural Gas surged 4.4 per cent, the most since August 28. Hero MotoCorp jumped 3.7 per cent to its highest level since January 4. ICICI Bank's pared this year's loss to 25 per cent.

The Sensex has fallen 9.5 per cent this year after foreign investors withdrew a net $2.4 billion from domestic stocks. They sold a net $115 million of local shares on Tuesday.