MUMBAI — Indian stocks rose, driving the Sensitive index to its biggest gain in more than four years, as governments around the world stepped up efforts to avert a collapse of the global banking system.
ICICI Bank Ltd., the Indian lender with the biggest losses on overseas investments, climbed by a record after its chief executive officer said the bank has sufficient funds.
Reliance Industries Ltd.,
Gains accelerated as the
“Markets were definitely looking oversold,’’ said Jayesh Shroff, who helps manage about $3.5 billion at SBI Mutual Fund in Mumbai.
“The liquidity infusion by countries across the globe is giving some relief to markets.’’
The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 728.61, or 6.9 per cent, to 11,256.46 as of
The gauge tumbled 16 per cent last week, taking its 14-day relative strength index, which measures how rapidly prices rose or fell during the period, to 21.8 on October. 10.
Some investors regard readings at 30 and below as a signal to buy.
The S&P CNX Nifty Index on the National Stock Exchange climbed 118.85, or 3.6 per cent, to 3,398.80.
The BSE 200 Index added 3.8 per cent to 1,301.50. Nifty futures for October delivery added 3.6 per cent to 3,423.
India will “shortly’’ announce more measures to increase the amount of cash in the financial system, Finance Minister Palaniappan Chidambaram said today before the stock market opened.
The minister said the government, the Reserve Bank of
ICICI jumped 25 per cent to Rs453.05, the most since the stock started trading in September 1997.
The lender’s shares fell by a record 20 per cent on October 10, taking the stock’s relative strength index to 24.
The bank is being targeted by short sellers who have spread rumors that the bank may struggle to refund depositors, CEO K.V. Kamath.
The stock has slumped 35 per cent in a month as the credit crisis forced Lehman Brothers Holdings Inc. to file for bankruptcy.
HDFC Bank Ltd., the nation’s No. 3 lender, rose 8.4 per cent to 1,136.15. State Bank of
Overseas investors sold a net Rs8.48 billion ($210.1 million) of Indian equities on October 8, increasing the outflow this year from stocks to $10.1 billion, according to the nation’s stock market regulator.
The following were among the most active stocks traded on the
Stock symbols are in parentheses after company names:Axis Bank Ltd. jumped Rs62.65, or 11 per cent, to 615.25.
Hindalco Industries Ltd. added Rs6.8, or 8.4 per cent, to Rs87.60. Founders and underwriters bought as much as 80 per cent of the new stock sold by the Indian aluminum maker after a poor response from shareholders, The Economic Times reported October 11.
Jaiprakash Associates Ltd. rose Rs3.1, or 4.1 per cent, to Rs79.20. India’s largest builder of dams said its board will meet October 21 to consider a plan to sell shares to existing shareholders.
Shipping Corp. Of India Ltd. gained Rs5.4, or 4.4 per cent, to Rs129.
The state-owned shipping company plans to buy four oil tankers each costing as much as $160 million, the Mint newspaper reported.