Capital goods stocks rose ahead of the release of the April 2009 industrial production data by the government on Thursday. Bharat Heavy Electricals surged 7.2% to 1,481.45 rupees and Larsen & Toubro gained 2.5% to 2,652.95 rupees.

Banking stocks rose after recent steep losses triggered by concerns the Reserve Bank of India may raise interest rates to rein in inflation. HDFC Bank advanced 4.7% to 1,184.55 rupees and ICICI Bank rose 1.4% to 741.65 rupees. ICICI Bank also eliminated 1,000 jobs to rationalize the operating costs.

Power stocks gained. NTPC was up 2.4% to 165.30 rupees, Tata Power Company rose 0.9% to 1,302.80 rupees.

Reliance Communications to list LSE

Reliance Communications may opt for a secondary listing in London of the new entity after the planned takeover of the South African telecom firm MTN to increase liquidity of shares in the global market.

Reliance is in exclusive talks with MTN with respect to a potential combination of their businesses. The exclusive talk period of 45 days started on May 26. Reliance Communications fell 1.4% to 543.05 rupees.

Tata seeks $1 billion

Tata Motors said on Wednesday it is looking at additional acquisition opportunities and strategic alliances in India and abroad and is seeking to raise $1 billion in debt or equity from overseas market. Tata Motors completed acquisition of UK luxury brands Jaguar and Land Rover for $2.3 billion earlier this month and recently completed acquisition of steelmaker Corus.

Precious metals prices

At mid-day, in London, gold gained $5.40 to $874.25 an ounce. Silver gained 1 cent to $16.94 an ounce, platinum advanced 32 cents to $2,026 an ounce and palladium gained $4 to $427 an ounce.