Mumbai - Arabstoday
India\'s benchmark stock index rallied the most in four months, halting two weeks of losses, after a slump in oil eased concerns that higher energy costs may lead to further monetary tightening. Oil & Natural Gas Corp., the nation\'s largest state-owned oil explorer, surged the most in a month. DLF Ltd., the biggest developer, climbed for the first time last week. State Bank of India, the biggest lender, advanced the most since August 12. Crude dropped 4.6 per cent to $91.02 a barrel yesterday and European leaders voiced support for Greece. Indian ministers meet today to set fuel prices as they seek to trim subsidies that threaten to top a forecast $5.3 billion. \"Stocks are seeing some short-covering as chances of the Greece crisis spreading to rest of Europe have diminished,\" said B. Gopkumar, executive vice president at Kotak Securities Ltd. in Mumbai. \"Stock valuations are looking much better than before\" after the recent declines. The Bombay Stock Exchange Sensitive Index, or Sensex, rose 2.9 per cent, to 18240.68 at the close of trade yesterday. The measure climbed 2 per cent last week, ending two weeks of losses. The S&P CNX Nifty Index on the National Stock Exchange climbed 2.8 per cent to 5,471.25 and its June futures settled at 5,484. The BSE 200 Index added 2.6 per cent to 2,248.79. Asian stocks rose yesterday, with the region\'s key index snapping seven straight weeks of declines.