US stocks rally for third day; Indian ADRs slide

US blue-chips rose Monday in the last hour of trade on growing confidence that the Federal Reserve will ease the turmoil in credit markets and keep the economy growing. US three-month treasury bill yields fell earlier in the session in their biggest one-day drop since the stock market crash of 1987 as investors pulled more money out of risky investments and sheltered it in one of the safest parts of the treasury market.

Later, yields rose as the flight to safety receded. Dow average was boosted by shares of big manufacturers like Caterpillar Inc that may benefit from a cut in benchmark interest rates. Caterpillar gained 1.9% to $74.05, making it the top positive influence on the Dow. Shares of Honeywell International also gained, ending up 2.5% at $55.82, along with Alcoa Inc, up 3.1% at $34.32 on the New York Stock Exchange.

The broad S&P 500 declined slightly, while the Nasdaq composite index finished a touch higher. JP Morgan Chase & Co, down 1.1% at $46.49, and Citigroup Inc, down 0.9% at $48.39, were among the laggards on the S&P 500 index. Dow Jones Industrial Average rose 42.27 or 0.3% to 13121.35. Nasdaq Composite Index added 3.56 points or 0.1% to 2508.59. S&P 500 slipped 0.39 points or 0.03% to 1,445.55.

Indian ADRs

Depositary receipts of most Indian companies listed on the Nasdaq ended in the negative terrain.
Infosys Technologies ended 1.1% lower at $46.61. Satyam Computer Services lost 2.73% to $23.88. Wipro fell 0.22% to $13.79. VSNL dipped 2.98% to $18.53. Rediff.com India was down 1.36% at $14.52. MTNL slid 1.63% to $6.65. HDFC Bank shed 2.25% to $82.06. ICICI Bank was down 2.4% to $41.89. Tata Motors fell 1.94% to $16.21. But Satyam Infoway climbed 4.76% to $7.48. Dr Reddy's Laboratories added 0.26% to $ 15.44. Patni Computer Systems rose 3.32% at $19.28.

Source: ET