Indian stock market rises amid global recovery

Indian share prices rose one percent on Monday as sentiment across global markets improved after central banks pumped cash into the financial system to ease fears of a US credit crunch, dealers said.

The benchmark 30-share Sensex index closed up 148.96 points to 15,017.21, after slipping 231.9 points Friday. At Monday’s close, the Sensex had fallen 5.36 percent from its intra-day record of 15,868.85 on July 24 as concerns remained about the troubled US mortgage sector.

“The markets recovered as Asian and European stocks rose. We however expect global volatility to continue in coming days,” said a dealer with brokerage Prabhudas Lilladher.

Gainers led losers 1,912 to 798 on volume of 41.26 billion rupees (1.01 billion dollars).

The rupee rose against the dollar to 40.56 from 40.67 and gained against the euro to 55.5 from 55.6. India’s top car maker Maruti Udyog rose 20 rupees or 2.47 percent to 830.25 while leading motorcycle maker Bajaj Auto rose 61.3 rupees or 2.64 percent to 2,380, ahead of a shareholders’ meeting this week.

Anglo-Dutch food giant Unilever’s Indian arm Hindustan Unilever rose 7.9 rupees or four percent to 203.5. India’s largest private sector lender ICICI Bank rose 9.45 rupees or 1.09 percent to 875.