Indian share prices closed up 2.02 percent on Monday to snap three days of losses on a global rally sparked by a US Federal Reserve discount rate cut last week, dealers said. They said banking, infrastructure and metal stocks which were battered last week were main gainers.
The benchmark 30-share Sensex index closed up 286.03 points to 14,427.55, off the day's high of 14,680.09. The Sensex fell 216.69 points last Friday after hitting a three-month low of 13,779.88 the same day.
The US Federal Reserve on Friday cut the lending rate it charges commercial banks in an effort to ward off a credit crunch linked to problems with the US subprime sector of housing loans to people with bad credit histories.
"The rally was expected, but the fear factor remains as investors are not sure how global equities could react in the coming weeks," said a dealer with brokerage Jamnadas Morarjee.
Comments
Comments are closed.