ICICI Bank Ltd., the Indian lender with the biggest losses on overseas investments, climbed by a record after its chief executive officer said the bank has sufficient funds.

Reliance Industries Ltd., India’s most valuable company, gained 2.6 per cent, the most in three weeks.

Gains accelerated as the UK agreed to invest $64 billion in Royal Bank of Scotland Group Plc, HBOS Plc and Lloyds TSB Group.

“Markets were definitely looking oversold,’’ said Jayesh Shroff, who helps manage about $3.5 billion at SBI Mutual Fund in Mumbai.

“The liquidity infusion by countries across the globe is giving some relief to markets.’’

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 728.61, or 6.9 per cent, to 11,256.46 as of 12:45 p.m. local time, set for its biggest gain since May 18, 2004.

The gauge tumbled 16 per cent last week, taking its 14-day relative strength index, which measures how rapidly prices rose or fell during the period, to 21.8 on October. 10.

Some investors regard readings at 30 and below as a signal to buy.

The S&P CNX Nifty Index on the National Stock Exchange climbed 118.85, or 3.6 per cent, to 3,398.80.

The BSE 200 Index added 3.8 per cent to 1,301.50. Nifty futures for October delivery added 3.6 per cent to 3,423.

ICICI Surges

India will “shortly’’ announce more measures to increase the amount of cash in the financial system, Finance Minister Palaniappan Chidambaram said today before the stock market opened.

The minister said the government, the Reserve Bank of India and the Securities & Exchange Board of India are working on a coordinated action plan.

Australia and New Zealand’s governments said they will back all deposits with financial institutions.

Indonesia raised the maximum guaranteed deposits at banks 20-fold. European leaders pledged to protect new bank debt until the end of 2009 and let governments shore up lenders.

ICICI jumped 25 per cent to Rs453.05, the most since the stock started trading in September 1997.

The lender’s shares fell by a record 20 per cent on October 10, taking the stock’s relative strength index to 24.

The bank is being targeted by short sellers who have spread rumors that the bank may struggle to refund depositors, CEO K.V. Kamath.

The stock has slumped 35 per cent in a month as the credit crisis forced Lehman Brothers Holdings Inc. to file for bankruptcy.

Overseas Sellers

HDFC Bank Ltd., the nation’s No. 3 lender, rose 8.4 per cent to 1,136.15. State Bank of India, the country’s largest, jumped 5.9 per cent to 1,431.95. Reliance gained 2.6 per cent to Rs1,567.15, the most since September 19.

Overseas investors sold a net Rs8.48 billion ($210.1 million) of Indian equities on October 8, increasing the outflow this year from stocks to $10.1 billion, according to the nation’s stock market regulator.

The following were among the most active stocks traded on theBombay and National stock exchanges.

Stock symbols are in parentheses after company names:Axis Bank Ltd. jumped Rs62.65, or 11 per cent, to 615.25. India’s fourth-biggest by market value reported second-quarter profit rose 77 per cent to Rs4.03 billion. Profit beat the Rs3.42 billion median estimate of three analysts surveyed by Bloomberg News.

Hindalco Industries Ltd. added Rs6.8, or 8.4 per cent, to Rs87.60. Founders and underwriters bought as much as 80 per cent of the new stock sold by the Indian aluminum maker after a poor response from shareholders, The Economic Times reported October 11.

Jaiprakash Associates Ltd. rose Rs3.1, or 4.1 per cent, to Rs79.20. India’s largest builder of dams said its board will meet October 21 to consider a plan to sell shares to existing shareholders.

Shipping Corp. Of India Ltd. gained Rs5.4, or 4.4 per cent, to Rs129.

The state-owned shipping company plans to buy four oil tankers each costing as much as $160 million, the Mint newspaper reported.