Mumbai: Indian shares extended gains to more than 4% by afternoon on Monday, after a fresh plan to clean up the US financial system sparked a rally across Asia.
Energy giant Reliance Industries and mortgage lender Housing Development Finance Corp led the rise.
At 1:44pm, the 30-share BSE index was up 3.92% at 9,318.39 points, after rising as much as 4.3%. Twenty-nine of its components rose. The 50-share NSE index was up 3.8% at 2,913.60.
The United States offered financing for private investors as part of a plan to purge banks of up to $1 trillion in toxic assets in its drive to pull the world’s biggest economy out of deep recession.
At 12:01pm, the 30-share BSE index was up 3.04% at 9,238.91 points, with 29 stocks advancing. The 50-share NSE index was up 3.2% at 2,896.55.
Tracking rising Asian markets, the Bombay Stock Exchange benchmark Sensex had opened higher by over 181 points on increased buying by funds in heavy-weight blue-chips stocks.
Buying activity picked up on the domestic markets in line with firming trends on the other Asian equity markets.
Stock brokers said apart from buying by funds, covering up of short positions by speculators also supported the rally.
On the BSE, shares of Tata Motors - the country’s largest vehicle maker - were in the limelight today ahead of the launch of its eagerly awaited ‘Nano’ and shot up by 6%.