Indian shares gain 2.13 percent

Indian shares rose 2.13 percent on Monday on fresh buying as European markets and US index futures firmed on prospects for an end to the grinding bear market, dealers said. The benchmark 30-share Sensex index rose 186.93 points to 8,943.54, its third straight day of gains. Sentiment improved as US index futures ruled firm after Wall Street extended gains last week for four straight days, on hopes that the bear market cycle could end soon.
Rates-sensitive property, banking and auto stocks rose on expectations that a lower interest rate regime would boost growth in key sectors. Foreign funds have sold shares worth 2.24 billion dollars so far this year after off-loading 3.23 billion dollars worth in the same period last year.
Shares in Satyam Computer Services fell 0.55 percent or 0.25 rupees to 45.25 despite the boards saying last week it has received an "adequate response" to its invitation for bids.
The Economic Times said almost 130 companies had expressed interest in buying Satyam, including multinationals IBM, Fidelity Investments and buyout specialist KKR. Gainers led losers 1,611 to 847 on turnover of 35.04 billion rupees (680 million dollars). The rupee rose against the dollar to 51.5 from 51.67, but was still hovering near an all-time low of 52.06 struck earlier this month.
The Indian currency fell against the euro to 66.59 from 66.73. The rupee has been under pressure for several months as funds have moved money into assets regarded as safer havens, and on higher dollar demand from oil refiners. Automobile shares rose on hopes of lower interest rates and a fall in fuel prices would boost demand for vehicles.
Indias top property firm DLF rose 9.4 rupees or 6.16 percent to 161.95 while the countrys largest private sector bank ICICI Bank rose 13.95 rupees or 4.52 percent to 322.65, as concerns surrounding financial and banking sectors eased. The countrys leading tractor maker Mahindra and Mahindra rose 29.25 rupees or 8.48 percent to 374.05. Indias largest vehicle maker Tata Motors rose 4.8 rupees or 2.97 percent to 166.4, a week ahead of the launch of its much-awaited small car, the Nano, in the city on March 23.