Sensex recovers from biggest fall in two weeks
Investors breathe easy as concern eases
Mumbai: India's benchmark stock index rebounded from its biggest drop in more than two weeks as Asian shares climbed for the first time since Japan's record earthquake triggered a nuclear accident.
Tata Power Co., the nation's largest electricity generator outside state control, rose 1.3 per cent. State Bank of India, the No. 1 lender, advanced the most in a month. Reliance Infrastructure Ltd. surged 5.2 per cent to its highest level in three weeks.
"Investors are breathing a little easier today," said Avinash Gupta, an analyst at Bonanza Portfolio Ltd., a New Delhi-based brokerage. "The rebound in Asian markets and drop in oil prices have helped eased some of the concerns."
The Bombay Stock Exchange Sensitive Index, or Sensex, gained 191.05, or 1.1 per cent, to 18,358.69.
The S&P CNX Nifty Index on the National Stock Exchange added 1.1 per cent to 5,511.15, while its March futures settled at 5,529.15. The BSE 200 Index rose 1.2 per cent to 2,257.69.
Worst performers
The Sensex's 10 per cent drop this year makes it Asia's worst performer after Japan among the region's largest stock markets amid concern government measures to quell inflation will hurt economic growth. The gauge has retreated 13 per cent from a November 5 record.
Companies on the Sensex are valued at an average 17.2 times estimated earnings, down from last year's high of about 21.5 times in March, according to data compiled by Bloomberg.
