Indian shares closed 1.84 percent higher on Tuesday, as optimism rose that the Congress-led coalition government would survive an imminent parliamentary confidence vote, dealers said. The benchmark Mumbai 30-share Sensex index rose 254.16 points to 14,104.2, its fourth straight day of gains.
Projections by Indian news channels and papers showed the government appeared to be just ahead of its rivals. "There are indications that the government could pull through this crisis," said Apurva Shah, head of research with brokerage Prabhudas Lilldher.
"If politics takes a back seat from here on, the markets could be rangebound as inflation and monetary policy tightening are real concerns," he added. The world's biggest democracy could go into early elections if the ruling coalition fails to win the vote.