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By Bloomberg

Indian stocks advanced for a seventh day, with the benchmark index rallying the most in five weeks, as easing concerns about the monsoon’s progress spurred speculation the central bank may be willing to cut borrowing costs.

Axis Bank Ltd. and ICICI Bank Ltd. were the top performers on the S&P BSE Sensex. Coal India Ltd., the world’s biggest producer, climbed for the first time in three days. Tata Steel Ltd., the biggest producer of the alloy, advanced to a two-week high. DLF Ltd. rose the most in five months, sending a gauge of property companies to its steepest gains in two months.

The Sensex increased 1.5 percent to 27,730.21, its highest close since June 1. The gauge ended three weeks of declines on Friday as better-than-forecast rains allayed concern that food costs will curb the Reserve Bank of India from paring interest rates for a fourth time this year. Emerging-market stocks rose the most in two months on speculation European officials will break a moths-long impasse in talks over Greek’s debt crisis.

“The monsoon’s progress is an important factor because it reduces concerns of a flare-up in inflation,” Sudip Bandyopadhyay, chief executive officer at Destimoney Securities Pvt., said by phone from Mumbai. Expectations of easing price pressures has “boosted hope for more cuts in interest rates,” benefiting property developers and banks, he said.

India’s monsoon rainfall has been 21 percent above normal since the start of the season on June 1, with 78 percent of the nation receiving excess to normal showers, the weather office said after trading ended on Monday.

Greek Talks

Reserve Bank of India Governor Raghuram Rajan on June 2 cut the main rate by 25 basis points and said he will assess monsoon rains before easing further, disappointing investors looking for more reductions to spur economic growth.

Rains in the June-September season water more than half of India’s farmland, where sowing begins in June.

The MSCI Emerging Markets Index rose 1.1 percent at 11:41 a.m. London time, the most since April 16. Greek Prime Minister Alexis Tsipras’s new plan to stave off default goes “in the right direction” and can “be a basis for an accord,” European Economic Affairs Commissioner Pierre Moscovici said.

“The monsoon is good, inflation is reasonably in control, crude-oil prices are in check and the Greek problem will probably be handled,” Brahmaprakash Singh, chief investment officer of equities at Pramerica Asset Managers Pvt., said in an interview with Bloomberg TV India.

Axis Bank Ltd. rallied 3.7 percent, the most since May 13, and ICICI Bank gained 3.5 percent. HDFC Bank Ltd. advanced 1.6 percent and State Bank of India, the country’s biggest lender, added 2.3 percent in a fifth day of advance.

DLF, Indiabulls

Coal India increased 1.5 percent, while Tata Steel gained 1.9 percent. Tata Motors Ltd., the maker of the world’s cheapest car, advanced 1.7 percent. DLF soared 7.6 percent, the most since Jan. 15.

Indiabulls Real Estate Ltd. surged 30 percent to 54.65 rupees, the most since its trading debut in March 2007. The company’s founders said they will buy 5.38 billion rupees ($85 million) of shares at 67 rupees apiece to raise their stake in the property developer, according to an exchange filing.

The Sensex has gained 0.8 percent this year and trades at 15.4 times projected 12-month earnings, versus the five-year average of 14.4. The MSCI Emerging Markets Index is valued at a multiple of 12, data compiled by Bloomberg show.

International investors sold a net $101 million of Indian stocks on Thursday, June 18, paring this year’s inflows to $6.3 billion.