10:00AM New York, 7:30 PM Mumbai - Companies overseas borrowing decline 49% to $17.02 billion.

Indian stocks rose sharply on expectations U.S. Treasury attempts to purchase $1 trillion of toxic assets from banks will stimulate economic growth.

Investors also cheered news that the country’s business confidence rose in the third quarter current fiscal year ending in December.

In Mumbai, the BSE 30-share Sensex index surged 5.1% or 457.34 to 9,424.02, and the CNX Nifty gained 4.7% or 133.85 to 2939.90.

Of the stocks traded on the BSE, 1,630 rose, 923 declined and 60 were unchanged.

Trading Statistics

Daily turnover on the BSE increased to 3,709 crore rupees from 2,942.83 crore rupees on Friday last week.

Indian Firms Overseas Borrowings Fall 49% to $17.02 billion

Economic Times of India reported today that a study by industry body Assocham noted today money raised by Indian companies overseas dropped 49% to $17.02 billion in 2008 from $33.33 billion the previous year.

The number of companies borrowing funds through ECB route has dropped by 45.2% to 414 firms in 2008 from 756 from a year earlier.

Of the 15 business houses covered, nine recorded a decline in the amount of money raised.

Assocham Secretary General D S Rawat said, “As Indian business heads have slowed down their major activities owing to the financial crisis, demand for overseas borrowings took a back seat in 2008 compared to the previous year.”

India’s Business Confidence Index Rises

India’s Federation of Indian Chambers of Commerce reported today that the business confidence index in the third quarter of current fiscal year increased to 44 from 37.8 in the previous quarter.

According to the report, 64% of the 384 respondent companies, with turnover between one crore rupees to 33,000 crore rupees, said overall economic conditions have deteriorated between April and September, falling 22 percentage points from the previous survey. The survey conducted in the third quarter tracks the sentiment for the period between April and September of 2008.

The survey notes that 17% project an increase in exports in the next six months, while 59% forecast exports to drop. About 70% of the companies polled said they will source funds from banks to meet their requirements after the recent RBI measures to improve debt market access.

In addition, 52% of companies say they are reconsidering project investments due to the prevailing interest rate.

Gainers & Losers

DLF fell 2.2%, and Hindustan Unilever rose 2.5% after its advance tax payment rose 30% to 130 crore rupees in the fourth quarter ended March 2009 from the comparable period a year ago.

Larsen & Toubro advanced 3.4% on news L&T and Grasim Industries is set to resolve its seven year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm.