Indian shares closed 2.63 percent higher on Tuesday as oil prices fell to a three-month low, easing inflation fears, dealers said. The benchmark 30-share Sensex index rose 383.2 points to 14,961.07. "A further easing of crude prices could led to some moderation in India's inflation," said Advait Date, a dealer at brokerage BHH Securities.
India's central bank has been aggressively tightening monetary policy, slowing economic growth and company profits, in a bid to combat inflation now riding at 13-year highs of close to 12 percent.