Domestic stocks advanced for a second day on speculation that US lawmakers would approve a $700-billion plan to rescue financial companies and revive credit markets.
Infosys Technologies, the nation’s second-largest software developer, climbed 3.7 per cent. Satyam Computer Services, the fourth-biggest, added 7.1 per cent to Rs 318.95. Both rose the most since September 19. ICICI Bank, India’s No. 2 lender, added 2.9 per cent.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 195.24, or 1.5 per cent, to 13,055.67. US stocks jumped the most in six years yesterday on renewed confidence that a bailout will be passed this week. The Standard & Poor’s 500 Index surged 5.3 per cent, a day after posting an 8.8 per cent decline as the Dow Jones Industrial Average slid 7 per cent.
“We saw the peak of panic the day the Dow fell 777 points,’’ said Sandeep Sabharwal, chief investment officer at Mumbai-based JM Financial Mutual Fund, who oversees $1.3 billion in equities. “That’s created a medium-term bottom and the market should see a decent bounce back over the next few months.’’
