Indian equity markets rallied on Monday after suffering losses the previous week, with the Sensex up 729 points (6.93%) and the Nifty up 197 points (6%). The gains were driven by strong global cues from Europe and Asia, where markets rose due to concerted European action to strengthen banks. A pep talk from the Indian Finance Minister before markets opened also boosted investor confidence. Experts noted the European measures to shore up banks provided confidence to investors.

1. Markets rally on European action to strengthen banks
Mon, Oct 13 03:18 PM
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.