Blue-chips were sharply higher yesterday, as renewed interest in equities extended to a second consecutive session amid guarded optimism that the market may have bottomed out after weeks of steady erosion.

But while utility, financial and basic material stocks led the rally, technology issues fell on more earnings warning within the group, dragging down the Nasdaq Composite index.

The Dow Jones Industrial average climbed 1.92 per cent while the Nasdaq fell 10.34 points.

"People are coming back to some of the great bargains that are out there," said Donald Berdine, chief investment officer at PNC Advisors, which oversees $65 billion. "People are saying right now, `God, there are values everywhere.' People are willing to move into the market."