India's broader NSE index closed up 1.6 percent on Tuesday after earlier hitting its highest in 16 months as positive earnings results including from DLF Ltd lifted sentiment. The NSE hit its highest since April 15, 2015 before ending 1.59 percent higher at 8,744.35. It was the index's biggest daily percentage gain since July 11. The benchmark BSE index closed up 1.58 percent at 28,343.01 after earlier hitting its highest since July 23, 2015.
Asian shares bounced modestly on Tuesday as doubts the US Federal Reserve would hike interest rates next month restrained the dollar, while investors continued to count on more policy stimulus elsewhere in the world. "I think that the market is in a narrow trading range from 8,500-8,800. There will be fresh buys when the index comes down to 8,500 and profit-booking when the index hits the 8,800-point mark," said R.K. Gupta, managing director of Taurus Asset Management.
Property-developer DLF Ltd was up as much as 3.2 percent after saying net profit more than doubled in the June-quarter, while Indian Oil Corp rose as much as 1.62 percent after posting a 25 percent increase in profit for the June-quarter. Auto makers also got a boost on hopes of a sales rebound, with Maruti Suzuki and Bajaj Auto rising as much as 3.6 percent - 3.8 percent to hit record highs. HDFC Bank rose as much as 1.85 percent, while ICICI Bank was up as much as 2.3 percent. EClerx Services surged almost 10 percent to a record high after its board approved a proposal to buy back shares worth 2.34 billion rupees.