India’s benchmark equity index headed for a record high as a broad-based rally in commodities including iron ore and copper helped metals companies advance.

The S&P BSE Sensex Index rose 0.3 percent to 32,320.97 at 10:50 a.m. in Mumbai, led by Tata Steel Ltd. An index of metals companies headed for its highest level in almost three years. Cigarette maker ITC Ltd. and Reliance Industries Ltd. gave the biggest boost to the broad gauge. The NSE’s Nifty 50 Index gained 0.3 percent to 9,994.10 after breaking through the 10,000 mark for the first time on Tuesday.

A resurgence in steelmaking in China, helped by the seasonal mid-year increase in production, has sparked a 30 percent rally in iron ore since mid-June to top $70 a metric ton. Copper rose 2 percent, extending a rally on Tuesday that lifted it to its highest close in more than two years.

“There is structurally a positive view on metals given the rising demand from China and other countries,” said Daljeet Singh Kohli, head of research with India Nivesh Securities Ltd. “At home, strong results from Vedanta is adding to the optimism generated by a global rally in commodity prices.”

Vedanta Ltd. jumped as much as 3.3 percent to the highest since September 2014, adding to a 3.7 percent gain Tuesday after the company reported a more than doubling of net income for the first quarter.

Summary

  • Suzlon Energy +3.4%, wins order from Alfanar Group
  • GE T&D India +20%, biggest gain since 2009; swings to profit for 1Q from loss; volume ~20x 3-month full-day average
  • Tata Metalinks -3.5%, 1Q net income declines