US stocks closed higher after a roller coaster session. Stocks rallied late in the session as bargain hunters stepped in despite economic concerns and worries about global credit markets. Reassuring earnings from Merck & few other companies provided support. The financial sector got support after Bear Stearns got a $ 1 billion investment from China's Citic securities. The energy sector was a notable laggard again as oil prices dipped 1.2%.

Volume on the New York Stock Exchange came to nearly 1.4 billion, as advancing stocks outran those declining 9 to 7. On the Nasdaq, nearly 2 billion shares were exchanged, and advancing issues topped decliners 3 to 2.

The Dow rose 44.95, or 0.33%, to 13,566.97, after falling more than 100 points early in the session. Broader stock indicators finished higher, with tech stocks leading. The S&P 500 index rose 5.70, or 0.38%, to 1,506.33, and the technology-dominated Nasdaq composite index rose 28.77, or 1.06%, to 2,753.93. The Russell 2000 index of smaller companies climbed 11.29, or 1.41%, to 810.08.

Indian ADRs end strong; MTNL rises more than 10%

The Indian ADRs had a good day as the US market sentiment improved. All of the ADRs managed to end in the green, led by MTNL, which was up more than 10%.

In the technology pack, Infosys Technologies was up 1.91% at $ 49.65, Patni Computers was up 3.79% at $ 22.71, Satyam Computers was up 3.77% at $ 26.98, while Wipro ended the day 1.87% higher at $ 15.23.

In the non-technology pack, HDFC Bank was up 2.87% at $ 108.68, VSNL was up 5.73% at $ 25.30, ICICI Bank was up 5.06% at $ 56.11, MTNL was up 10.21% at $ 8.85, Tata Motors was up 0.36% at $ 19.37, Dr Reddy's Lab was up 1.41% at $ 15.82 and Sterlite was up 2.65% at $ 20.55.