Posted on 07/12/2006 5:51:09 AM PDT by Brilliant
BOMBAY, India (AP) -- Indian stocks rose a surprising 3 percent Wednesday, despite predictions of a sell-off following a series of train bombings the previous day that rocked the country's financial capital. Upbeat earnings from software company Infosys Technologies Ltd. helped lift the market, boosting investor confidence in the country's technology and outsourcing industries.
The benchmark index of the Bombay Stock Exchange, the 30-share Sensex, rose 314 points, or 3 percent, to finish at 10,928.
The index initially dipped 0.3 percent as trading opened, but soon recovered and continued to climb throughout the day.
The market's performance surprised analysts who had feared stocks would plunge in reaction to the bombings that killed at least 190 people and injured hundreds more.
Eight bombs tore through packed trains during rush hour Tuesday evening in a well-coordinated attack that Indian Prime Minister Manmohan Singh blamed on "terrorists."
Investors seemed to gain confidence from better-than-expected quarterly earnings from Infosys, which boosted demand for technology shares.
Infosys said based on U.S. accounting standards, its net profit jumped 44 percent in the April-June quarter to $174 million, driven by strong growth in outsourcing orders. It also raised its revenue and earnings forecast for the fiscal year through March 2007.
Bombay Stock Exchange Chief Executive Rajnikant Patel urged investors to remain vigilant against market manipulators who might try to exploit the situation.
"Please be alert, do not get unduly influenced by rumors and take care," Patel said a statement on exchange Web site.
Kudos. Looks like capitalism is taking hold in India, despite the efforts of some.
What a courageous and fabulous result!
India has more spine than Spain, more libido than Liberals, more common sense than Communists, more integrity than Islamofacists.
Not to take away from it, but I would not be too surprised if a lot of the impetus was American investors snapping up bargains.
Fox News just reported that the Indian deaths from the terrorist attack number 200 now.
Not exactly-it's mainly positive sentiment over the profits of Infosys.
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