BUSINESS

US listed Indian stocks rebound; gain $11 bn

Source:PTI
October 14, 2008 17:30 IST

A sharp recovery in the global markets drove Indian stocks listed on American bourses to gain over $11 billion collectively in a single day led by IT major Wipro.

The shares of 16 Indian companies listed on Nasdaq and the New York Stock Exchange have collectively seen a value increase of over $11.54 billion on Monday against the cumulative loss of $19.45 billion they suffered during the week ending October 10.

Wall Street on Monday saw its biggest rally in 75 years, with Dow Jones index shooting up more than 11 per cent.

The tech-heavy Nasdaq jumped 194.74 points, or 11.81 per cent and the Standard & Poor's 500 index rose 104.11 points, or 11.58 per cent.

Led by IT bellwether Wipro, whose market capitalisation increased over $3 billion, the banking companies which contributed maximum towards last week's losses regained their ground on Monday.

ICICI and HDFC Bank, which were major losers last week, gained nearly $4 billion in a single day. ICICI Bank gained $2.25 billion, while  HDFC Bank gained $1.63 billion.

Another major gainer was Infosys which saw its market capitalisation jumping by $1.30 billion, while Tata Communication's value increased by $645 million.

Last week Infosys had posted a better than expected second quarter results, thereafter it revised its dollar revenue guidance. As per the revised guidance, the full-year revenue is expected to be $4.72-4.81 billion compared to the previous guidance of $4.97-5.05 billion.

Moreover, other major Asian indices, South Korea's Kospi, Indonesia's Jakarta Composite and Singapore's Sraits Times Index, made substantial gains.

US President George Bush is expected to make a statement on the country's response to the ongoing financial crisis. Further, the Treasury is anticipated to announce that the government would be buying stakes in leading banks.

On Monday, in an effort to shore up the fortunes of the country's troubled banking sector, Germany announced a nearly 500 billion Euro ($685 billion) package, while France came out with a 100 billion Euro ($137 billion) lifeline.

The UK government would be pumping in 37 billion euro ($64 billion) to salvage the nation's three major banks -- Royal Bank of Scotland, HBOS and Lloyds TSB.

Further, Spain has extended a lifeline of nearly 100 billion Euro.

Meanwhile, calling for a greater role of the IMF to tide over the credit turmoil, Japan said on Tuesday the country is ready to offer financial support to the multilateral funding agency to stabilise world markets.

In addition, the Japanese finance ministry would issue 30-year Japan government bonds with an offering amount about 600 billion yen.

The Dow Jones Industrial Average Index on Monday closed at 9,387.61 points, up 11.08 per cent while S&P 500 ended the day with a gain of 11.58 per cent at 1,003.35 points.

In addition, the Nasdaq Composite Index rose 11.81 per cent to close at 1,844.25 points.

Source: PTI
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