Indian shares rose more than 1 percent on Tuesday, snapping a three-session losing streak as beaten-down banking and financial stocks and Reliance Industries recovered, while sentiment was also supported by hopes for stimulus measures in China. The broader NSE index rose 1.14 percent, posting its biggest one-day percentage gain since December 17. The benchmark BSE index gained 1.21 percent.
Reliance Industries rose 2.6 percent, while ICICI Bank gained 2.5 percent. Local shares closed at their lowest level since May 2014 on Monday after crude oil fell to its lowest in over a decade, while data showed the country's exports shrank for a 13th straight month. Gains in local shares tracked a recovery in Asian shares, which rose after data showing China's economy grew in the fourth quarter of 2015 at its weakest pace in nearly seven years, raising the chances of more stimulus policies.
"The markets had entered into the oversold region, that's why you're seeing buying in banks and in frontline stocks," said Alex Mathews, head of research at Geojit BNP Paribas. Both NSE and BSE indexes were on track to post their biggest single-day percentage gain since December 23, 2015. Gains were led by beaten-down banking and financial stocks.
ICICI Bank gained 3 percent after shedding 0.6 percent in the previous session. Axis Bank was up 4.5 percent ahead of its quarterly results on Wednesday. Index heavyweight Reliance Industries was up 2.3 percent ahead of its quarterly results later in the day. The stock took a beating on Monday, falling 5.3 percent along with other oil producers. Meanwhile, HCL Tech was down 0.8 percent after reporting quarterly results that met street estimates.