BENGALURU: Indian shares rose on Tuesday, led by a rebound in financials after a two-session losing run, while a global stock rally persisted on expectations that US interest rates have peaked.

The NSE Nifty 50 index added 0.45% to 19,783.40 points and the S&P BSE Sensex settled 0.42% higher at 65,930.77.

Ten of the 13 major sectoral indexes advanced. High weightage financials added 0.48%, snapping a two-session losing streak after the Reserve Bank of India tightened norms for consumer credit.

“Recovery among banking heavyweights is crucial for a fresh upmove in Nifty,” analysts at ICICI Direct said. The brokerage expects the main Nifty 50 index to trade in the 19,500-19,850 range in the near term.

IT index settled 0.18% lower, snapping a recent rally.

IT companies, which earn a significant share of their revenue from the U.S, have gained 5.52% since Nov. 14 as soft US inflation data elevated bets that the US Federal Reserve will not hike rates further in this cycle.

“Stabilisation of US macro, bottoming of cloud revenue and strong sector order book will aid growth in Indian IT companies in fiscal 2025,” analysts at Bernstein wrote in a note.

Asian markets were up as well, tracking an overnight Wall Street rally to multi-month highs. The MSCI Asia ex-Japan index was up 0.53%.

The focus will shift to minutes of the Fed’s latest policy meeting, due later in the day, for cues into the central bank’s rate outlook, analysts said.