Business | Markets
Indian share rebound is biggest in 4 years
Indian shares rose 7.4 per cent on Monday, snapping a five-day losing run with their biggest rise in more than four years as the government sought to reassure investors it was working to shield India from the global crisis.
- Reuters
- Published: 23:28 October 13, 2008
Bangalore: Indian shares rose 7.4 per cent on Monday, snapping a five-day losing run with their biggest rise in more than four years as the government sought to reassure investors it was working to shield India from the global crisis.
The gains were led by a surge in ICICI Bank shares and helped by rallies in overseas markets after policy-makers around the world took new and drastic steps to rescue banks and prevent the global economy from sinking into recession. However, doubts remained about the strength of the rise.
ICICI shares rocket
ICICI Bank rose 16.75 per cent to Rs425.10 (Dh31.3), having risen nearly 25 per cent earlier, helped by the finance minister's comments that the government was working to improve liquidity in the banking system and after its chief executive said yesterday deposits with the bank were safe and it had a cushion to take domestic and overseas shocks.
The 30-share BSE index ended up 7.42 per cent, or 781.24 points, at 11,309.09, its biggest percentage increase since May 18, 2004, as it pared some of the previous week's fall of nearly 16 per cent. All but two of its components gained ground.
"It's a temporary pullback rally, triggered by the positive international markets and the reassurance from the finance minister about the liquidity situation in the country," said Gajendra Nagpal, chief executive of Unicon Financial.
Finance Minister P. Chidambaram said on Monday the government, the central bank and the stock market regulator were coordinating on an hourly basis regarding the fallout of the global financial crisis on the Indian market.
Traders said the statement led to speculation the regulator would take measures such as banning short-selling.
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