Indian stocks rose 1.3 per cent in morning trading, recovering from an early drop that followed yesterday's train bombings that killed at least 190 people in the country's financial capital. Upbeat earnings from software company Infosys Technologies helped lift the market.
Just before noon, the benchmark index of the Bombay Stock Exchange, the 30-share Sensex, was up 137.58 points, or 1.3 per cent, to 10,752.
The index fell as much as 0.3 percent in the first half-hour of trading, far less than analysts had feared following Tuesday evening's bombings that killed at least 190 people and injured hundreds more.
The market was supported by better-than-expected quarterly earnings reported by Infosys Technologies Ltd., which boosted most technology shares.
Infosys said its net profit jumped 50.4 percent in the April-June quarter to 8 billion rupees ($173 million), driven by strong growth in outsourcing orders. It also raised its revenue and earnings forecast for the fiscal year through March 2007.
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."
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.
AP