<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>The BSE Sensex rose on Wednesday as power utilities gained after a proposed tariff hike in New Delhi, while infrastructure stocks such as BHEL advanced on hopes for a renewed push by the government to increase investment in the sector.<br><br>Sentiment was also boosted after Deutsche Bank upgraded Indian stocks to "overweight" from "neutral," calling them close to the cheapest in two decades. The action followed a J.P.Morgan upgrade to the same rating last week.<br><br>However, investors remain cautious ahead of the expiry of derivatives on Thursday, and ahead of a European Union summit starting on the same day that is expected to deliver little in terms of meaningful action on the euro zone debt crisis.<br><br>"People are expecting the announcement of new finance minister soon. If the Prime Minister keeps the position, it can be a boost to markets in terms of stalled infrastructure projects and other reforms," said K. Alex Mathews, head of research at Geogit BNP Paribas.<br><br>The BSE Sensex rose 0.36 per cent to 16,967.76 points, a second consecutive day of mild gains.<br><br>The Nifty added 0.41 per cent to 5,141.90 points.<br><br>Hopes about Singh's commitment to infrastructure have been raised after he assumed an additional role as acting finance minister after previous incumbent Manmohan Singh stepped down on Tuesday.<br><br>The Prime Minister Office had been actively involved in pushing ahead with major transport and power projects this year, convening a meeting of relevant ministries.<br><br>BHEL gained 0.6 per cent, while Reliance Infrastructure rose 2.02 per cent.<br><br>Power utilities were also among the day's leading gainers after Delhi Electricity Regulatory Commission proposed a 24 per cent hike in power tariffs for household consumers in New Delhi and a 19.5 per cent hike for commercial consumers.<br><br>Reliance Infrastructure rose 2 per cent, while Tata Power added 2.2 per cent.<br><br>State-run power sector lenders advanced on expectations utilities would be better placed to pay back their loan commitments.<br><br>Power Finance Corp gained 5.2 per cent, while Rural Electrification Corp added 4 per cent.<br><br>Strides Arcolab gained 2.7 per cent after the company said it had redeemed $80 million of outstanding foreign currency convertible bonds, removing a key concern for investors. </p>
<p>However, among under-performers, State Bank of India ended flat per cent after Morgan Stanley maintained its "underperform" rating on the stock, expressing concerns about asset quality pressures after meeting with management.<br><br>(Reuters)</p>