Indian shares rose 2.81 percent on Wednesday on fresh buying in index heavyweights after US stocks extended gains on better-than-expected earnings news, dealers said. The benchmark 30-share Sensex index rose 253.39 points to 9,257.47. Investors will look for further direction on the US economic recession from the US Federal Reserve whose two-day meeting ends later Wednesday.
"Positive cues from the US index futures boosted sentiment," said Alex Mathew, head of research with Geojit Securities. Shares of fraud-hit Satyam gained 17.6 percent or 8.3 rupees to 55.45 after the company said Tuesday it named investment bankers Goldman Sachs and Avendus Capital to advise the Satyam board on a possible sale of the company.
Satyam has risen nearly 100 percent in the past week from 27.75 rupees as positive news has emerged on the company's funding plans to secure its future following a massive accounting scam. In Wednesday's trade, gainers led losers 1,403 to 1,207 on turnover of 36.06 billion rupees (737 million dollars).
Last year, overseas funds were net sellers of Indian stocks disposing of 13.13 billion dollars worth of shares in 2008. India's largest private sector firm Reliance Industries rose 46.1 rupees or 3.76 percent to 1,273.15 on bargain hunting. India's largest private sector bank ICICI rose 27 rupees or 7.08 percent to 408.35.