Indian equity markets rallied on Monday after suffering losses the previous week. The Sensex index rose over 729 points, or 6.93%, and the Nifty index rose over 196 points, or 6%, in response to strong global cues from European and Asia-Pacific markets. Concerted European action to strengthen banks provided investors with much-needed confidence, according to an analyst.

1. Markets rally on European action to strengthen banks (Third
lead)
Mumbai | October 13, 2008 3:35:05 PM IST
After suffering a blood bath last week, Indian equities markets staged a smart recovery Monday
on strong global cues from both European and Asia-Pacific markets as well as a pep talk from
Finance Minister P. Chidambaram just before markets opened.
Mid-afternoon, the benchmark 30-share index of the Bombay Stock Exchange, the Sensex, was
at 11,257.14, up 729.29 points or 6.93 percent from its previous close Friday at 10,527.85 points.
Similarly, at the same time the broader-based 50-share S&P CNX Nifty index of the National
Stock Exchange (NSE) was at 3,476.90, up 196.95 points up or 6.00 percent from its previous
close Friday at 3279.95 points.
The BSE midcap index was at 3,815.95, up 139.95 points or 3.81 percent from its previous close
Friday at 3,676.00 points.
The BSE smallcap index was at 4,500.14, up 144.69 points or 3.32 percent from its previous
close Friday at 4,355.45 points.
Concerted European action to strengthen the banking system has given the much-needed
confidence that investors were looking for, said Jagannadham Thunuguntla, head of the
capital markets arm of India’s fourth largest share brokerage house SMC Group.