Indian shares rose on Tuesday for the first time in five sessions, rebounding 2.95 percent as global risk appetite was bolstered by optimism European leaders will pull together a rescue plan for the debt-ridden eurozone. Much of the rise was helped by short-covering as the gloom lifted after weekend meetings of the International Monetary Fund triggered hopes European policymakers will act to contain Greece's debt problems.
Beaten-down energy major Reliance Industries led the rise, followed by software services bellwether Infosys and ICICI Bank. The 30-share BSE index rose 472.93 points to 16,524.03, its best one-day percentage gain in a month. All but one of its components closed in the green.
The 50-share NSE index rose 2.8 percent to 4,971.25. In the broader market, there were 3.5 gainers for every loser on moderate volume of 519 million shares. Reliance Industries, which has the heaviest weight in the index, rallied 5.01 percent to 797.20 rupees. The stock, which had slid 9.4 percent over the previous three days, is down more than 24 percent in the year to date due to concerns about falling gas output from its field off India's east coast.
Infosys, which gets most of its revenue from the United States and Europe, rose 3.8 percent on hopes a stabler Europe will help boost spending on outsourcing. Bigger rival Tata Consultancy Services gained 4.4 percent. ICICI climbed 3.3 percent, while rivals HDFC Bank and State Bank of India added 1.6 percent and 2.35 percent respectively. Telecoms firm Reliance Communications rose 3.7 percent.
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