10:00AM New York, 7:30 PM Mumbai - Ambani settlement rumors lift Mumbai stocks higher.

Indian stocks rose 3.3% led by Reliance Industries on market rumors the brothers Mukesh and Anil Ambani had opted for an out-of-court settlement in Reliance Industries-Reliance Natural Resources gas dispute case.

Speculation swelled that Mukesh Ambani might part with the retail business against Anil Ambani''s RNRL business. The Bombay High Court is hearing a dispute between the brothers.

However, Reliance Industries denied the rumors.

In Mumbai, the BSE 30-share Sensex Index increased 3.3% or 299.13 to 9,370.49, and the CNX Nifty gained 3.3% or 90.35 to 2835.30.

Of the stocks traded on BSE, 1402 rose, 992 declined, and 104 were unchanged.

Trading Statistics

Daily turnover on the BSE declined at 2,811 crore rupees from 3,476.99 crore rupees yesterday.

Steelmakers Return to Full-Scale Operations

Economic Times of India reported today that Indian steel makers Ispat, Essar and JSW have ratcheted up production and resumed full-scale production after scaling back in October last year.

The report notes that while JSW has resumed full-scale operations, Ispat and Essar are operating at 75% capacity.

“Though we have resumed full scale production at existing plant in Vijayanagar, Karnataka, the decision to start commercial production from the new line would be taken shortly. We expect it to become operational within this quarter,” a senior executive at JSW Steel was quoted as saying.

Gainers & Losers

IT stocks rose despite the rupee increasing 48.80 against the dollar from 49.11 yesterday. Infosys Technologies gained 6.5% to 1310 rupees after reporting forecast beating third quarter results yesterday, TCS advanced 2.3% to 535 rupees and Wipro rose 0.8% to 243.10 rupees.

Jaiprakash Associates increased 6%, Mahindra & Mahindra rose 4.4%, and Tata Steel edged up 5.7%.

Grasim declined 3.2%, Hindustan Unilever fell 0.4% and Maruti Suzuki India dipped 0.64%.

Reliance Industries surged 11.4% to 1,203.55 rupees on speculation that the company might re-enter the retail fuel business after government deregulates fuel prices.

Other Mukesh Ambani group stocks rose. Reliance Petroleum increased 6.7% and Reliance Industrial Infrastructure jumped 5%.

Anil Ambani controlled ADAG group stocks increased. Reliance Infrastructure soared 13%, Reliance Natural Resources climbed 15% and Reliance Capital advanced 7.6%.

Bharti Airtel gained 2.6% to 623 rupees.