India markets 4 per cent higher on global cues
Indian equities surged in early trade on Tuesday on top of a strong rally the previous day as investors' sentiments were boosted following sharp gains in global bourses, reported dpa.
The 30-share Sensex of the Bombay Stock Exchange, which had gained 781.24 points on Monday, shot up by another 542.06 points, or 4.79 per cent, at 11,851.15 within minutes of trading.
The Sensex was quoted at 11,833.36, a gain of 524.27 points or 4.64 per cent at 11.30 am (0600 GMT).
Similarly, the broader 50-share Nifty index rose 4.10 per cent to 3,627, up by 136,39 points around the same time.
Banking stocks were the major contributors to the gain with ICICI Bank rising by nearly 7 per cent and the largest government-run State Bank of India rising by 3.6 per cent.
Other gainers were Reliance Industries, HDFC Bank, Larsen and Toubro, Infosys Technologies, Wipro Ltd, Tata Consultancy Services and Satyam Computers.
Market analysts said trading sentiments were bolstered on expectations that the government would take more steps to restore investors' confidence.
Overnight gains of up to 40 per cent in Indian companies ADR (American Depository Receipts) values at the US markets also buoyed trading sentiments, the PTI news agency reported.
Wall Street staged its biggest rally in 70 years with the Dow Jones Industrial Average soaring by 936.42 points, or 11.08 per cent. Asian bourses were also trading strong on Tuesday on hopes that the new measures announced by governments worldwide could ease the global credit crisis.
Indian finance minister P Chidambaram said he hoped that Indian capital markets would show the same "optimism" as was displayed by the US, European and East-Asian markets.
Meanwhile, the central Reserve Bank of India that has already pumped in over 13 billion dollars into the banking system through a cut in Cash Reserve Ratio (CRR) with banks, planned to infuse another 4.5 billion dollars.