Indian Stocks on a Rise to Lead

India stocks rose for the first day in five on speculation recent losses were excessive and corporate earnings will withstand the global recession.

Reliance Industries Ltd., the nation’s largest non-state company, rallied 9.5 percent, rebounding from a four-day, 21 percent retreat.

Infosys Technologies Ltd., India’s second-largest computer-services company, rose 6.1 percent, extending yesterday’s gains after it reported better-than-estimated earnings.

Tata Consultancy Services Ltd. jumped 2.5 percent before the release of its earnings tomorrow.

“The market is taking heed and reacting to the good news after a spate of really bad news,” said Shashank Khade, who helps manage $400 million at Kotak Securities Ltd. in Mumbai. “Investors are also feeling happy that Infosys has done well.”

The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 299.13, or 3.3 percent, to end at 9,370.49, halting a four-day, 12 percent drop. The Sensex’s retreat, following the disclosure of an accounting fraud at Satyam Computer Services Ltd., was its steepest four-day loss since the period ended Oct. 27, according to data tracked by Bloomberg.

The S&P CNX Nifty Index on the National Stock Exchange gained 3.3 percent to 2,835.30, its largest gain since Dec. 18.

Reliance earlier jumped as much 13 percent to 1,218 rupees. Losses over the previous four days sent its 14-day relative strength index, showing how rapidly prices advanced or dropped during the specified time period, to 36 yesterday, near the 30- level that some analysts regard as a signal that the security is poised to rebound.


ICICI Bank Ltd., the nation’s second-biggest bank, rose 3.7 percent to 441.1 rupees, rebounding from a four-day, 19 percent slump.

Bharti Airtel Ltd., India’s largest mobile-phone operator, climbed 2.6 percent to 622.75 rupees. Today’s gain is the first since Jan. 1.

Glenmark Pharmaceuticals Ltd. rose 16.4 percent to 257.8 rupees, the most since Jan. 7. The drugmaker rebounded from a four-day, 28 percent decline.