US markets posted its best start to a second quarter in 70 years after Lehman Brothers indicated that the bank can weather further credit losses. Lehman brothers shares rocketed 18% after the investment bank said it raised $ 4 billion of capital in an offering of convertible preferred shares.

UBS sparked a rally in Europe on expectations that financial firms will recover from its $ 232 billion in mortgage-related losses. It announced a write-off worth $ 19 billion. The bank, whose chairman resigned soon after the announcement, says it will look to raise $ 15 billion through a rights issue. This will be the bank's second emergency attempt to shore up its balance sheet. It will also look at hiving off ailing businesses into a separate unit. The stock was up 15%.

Other financials were also part of the rally. Freddie Mac and Fannie Mae are also expecting to raise capital. Both ended higher.

Better-than-expected reading on the manufacturing sector also fueled gains. The ISM reported that its purchasing manager’s index rose unexpectedly to 48.6 in March Vs 48.3 in February.

The dollar rose against the euro and the yen and treasury yields climbed as traders pared bets on additional interest-rate cuts by the Fed.

The Dow added 391.47 points, or 3.19%, to 12,654.36. The Standard & Poor's 500 index advanced 47.48 points, or 3.59%, to 1,370.18. The Nasdaq composite index gained 83.65 points, or 3.67%, to 2,362.75.

A look at how the Indian ADRs performed:

Name Infosys Sify Rediff.com India Satyam Wipro ICICI Bank HDFC Bank MTNL Tata Comm Dr Reddy's Lab Tata Motors Patni Computer Sterlite Ind

Symbol INFY SIFY REDF SAY WIT IBN HDB MTE TCL RDY TTM PTI SLT

Price 37.43 4.86 8.7199 24.14 12.17 41.18 104.11 5.17 27.37 15.21 16.13 12.15 18.92

Change 1.66 0.40 0.76 1.55 0.64 2.99 5.87 0.23 2.55 0.73 0.51 0.72 1.10

Change% 4.64% 8.97% 9.55% 6.86% 5.55% 7.83% 5.98% 4.66% 10.27% 5.04% 3.27% 6.30% 6.17%

Volume 4,467,246 176,165 78,655 1,560,130 853,389 4,724,375 796,453 386,669 171,300 270,000 3,596,314 189,230 1,016,321

High 37.43 4.88 8.78 24.19 12.23 41.18 104.11 5.25 27.37 15.26 16.36 12.25 19.10

Low 36.36 4.48 8.16 22.61 11.4 38.27 97.70 5.050 26.64 14.55 15.72 11.66 17.80