Business | Markets
Indian shares rise 1.5% on hopes of US bailout vote
Indian shares rose 1.52 per cent yesterday, lifted by global hopes the United States would pass a new version of a $700 billion bailout package to tackle the worst financial crisis since Great Depression.
- Reuters
- Published: 00:07 October 2, 2008
New Delhi: Indian shares rose 1.52 per cent yesterday, lifted by global hopes the United States would pass a new version of a $700 billion bailout package to tackle the worst financial crisis since Great Depression.
Banking and software stocks contributed most to the gain, although uncertainty about the world economy and a local holiday today kept trade choppy. At the close, the market had extended its rebound from Tuesday's two-year low to 7.4 per cent.
Stocks in Japan and Australia finished up, and European equities rose early before turning choppy later. But Wall Street futures were trading down by 1200 GMT with eyes set on the US Senate vote for the revived bailout package due later in the day.
"Definitely expectations are building up that the bailout package would be through in the Congress, though there are still some apprehensions," said K.K. Mital, head of portfolio management services at Globe Capital.
"Tomorrow is a holiday, so we will get to see the impact only on Friday. But if it goes through, it will surely bring some comfort to the uncertain market."
The 30-share main BSE index rose 195.24 points to 13,055.67, with 24 components gaining, trimming its losses for the week to 0.35 percent. The index rose as much as 2.7 per cent and fell as much as 1.3 per cent during trade.
HDFC Bank rose 5.3 per cent to Rs1,293.65, its highest close in about a week. ICICI Bank, India's No 2 lender, added 3.1 per cent to Tuesday's 8.4 per cent jump, although it is still down 1.75 per cent this week.
The bank sector index rose 3.23 per cent.
Software exporters, who derive about half of their revenue from the United States, rose on hopes the bailout package would support the world's biggest economy.
Techies jump
Infosys Technologies was up 4 percent at Rs1,453.90, and Satyam jumped 7.5 per cent to Rs318.75.
The outsourcers' September quarter earnings are expected to have been boosted by the rupee's 8.4 per cent fall against the dollar during the quarter. Infosys reports results on October 10.
The main index fell 11.7 per cent in September, but posted its smallest quarterly loss in 2008 to be down just 4.5 per cent, compared with a drop of almost 14 per cent in the June quarter and nearly 23 percent fall in the March quarter.
In the broader market, 1,484 gainers led 1,130 losers on volume of 227 million shares.
The 50-share NSE index gained 0.75 per cent to 3,950.75, and is now down 0.87 per cent on the week.
Share this article
More from Markets
More from Business
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
