Indian shares rose 0.43 percent Tuesday on bargain hunting by funds, snapping three days of losses, dealers said. The benchmark 30-share Sensex index rose 64.82 points to 15,074.59. Indian share prices had dipped nearly six percent in the previous three days, on concerns about the impact of low rainfall on agricultural growth and rural spending.
Fund managers will eye the two-day meeting of the US Federal Reserve, which starts Tuesday. Analysts expect the central bank to keep key rates unchanged but will look for statements relating to the economic outlook. "The markets were choppy and investors unclear of the future trends. We expect a further correction ahead," said a dealer with brokerage Jamnadas Morarjee.
Gainers led losers 1,356 to 1,282 on turnover of 50.57 billion rupees (1.05 billion dollars). Tata Motors rose 27.3 rupees or 6.81 percent to 428.25, after the company said on Tuesday it secured private funding worth 175 million pounds (288 million dollars) for its British luxury carmaker Jaguar Land Rover, meaning the firm will no longer be seeking state help.
Mahindra and Mahindra rose 26.9 rupees or 3.55 percent to 785, on bargain hunting, after it fell sharply in previous trading days. The country's largest carmaker Maruti Suzuki India rose 40.45 rupees or 3.23 percent to 1,291.85 as Indian automakers reported higher sales for the sixth straight month.