Indian stocks snapped a two-day losing streak to end nearly 1 percent higher in a highly volatile day where stocks recovered from over 1-1/2-year lows led by strong buying in heavyweight Reliance Industries. The broader NSE index ended 0.69 percent higher after falling as much as 1.13 percent higher. The benchmark BSE index gained 0.7 percent at close after losing as much as 1.19 percent earlier.
Tata Consultancy Services shares fell more than 3 percent after third-quarter dollar revenue of the country's largest IT services exporter missed street estimates. Sentiment was also soured as Chinese markets gave up earlier gains to end 2.4 percent lower, underscoring the fragility of investor sentiment following last week's rout. "The market is in a bearish mode. Many frontline stocks have hit 52-week lows, expectations from earnings are low and investors are booking profits in mid-cap stocks," said Alex Mathews, head of research at Geojit BNP Paribas.
The broader NSE index fell as much as 1.1 percent to its lowest level since July 14, 2014, after rising 1 percent earlier in the session. The benchmark BSE index declined as much as 1.2 percent to its lowest level since June 2, 2014. Banking stocks continued to languish with nearly all lenders trading in the red. Capital goods stocks such as Larsen & Toubro fell 3.8 percent and BHEL dropped 4.35 percent on disappointing factory data that came out late on Tuesday. Meanwhile, shares of Infosys gained 1.5 percent on hopes that the valuation gap between the stock and larger rival TCS was closing.
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