Indian share prices recovered 1.53 percent on Tuesday led by banking stocks after lender ICICI Bank's record share sale was fully subscribed on its first day, dealers said. They said funds bought into capital goods and automobile stocks too.
The 30-share Sensex index rose 215.36 points to 14,295.5, snapping two days of losses. Gainers led losers 1,403 to 1,144 on volume of 43.26 billion rupees (1.06 billion dollars). The rupee was flat against the dollar at 40.76 and was also unchanged against the euro at 54.58. The local portion of ICICI Bank's sale was oversubscribed 1.8 times, bankers to the issue said, indicating strong demand from funds.
In India, the bank plans to raise up to 2.15 billion dollars through the offer and an equal amount through American Depository Receipts for a total of 4.3 billion dollars. The offer in both countries closes Friday. "The markets saw some fresh buying momentum. This could be relief buying and we expect the markets to remain rangebound in coming days," said Manoj Kakaiya, a dealer with brokerage ULJK Securities.
ICICI Bank rose 26.55 rupees or 2.89 percent to 944.4 while the country's largest Lender State Bank of India rose 54 rupees or 4.1 percent to 1,372.4. Engineering firm Larsen and Toubro rose 68.5 rupees or 3.56 percent to 1,995.7 while India's largest motorcycle maker Hero Honda rose 12.1 rupees or 1.85 percent to 665.8.