Indian Shares Rebound After Monday's Selloff

(RTTNews) - Indian shares rebounded on Tuesday after experiencing a steep fall in the previous session.

Traders bought the dip as oil prices plunged over 10 percent and bond yields dipped following U.S. President Donald Trump's decision to postpone potential strikes on Iran's energy infrastructure for five days.

While Iran denied it held talks with the U.S. to end the war, media reports suggesting that the U.S. has been sending messages to Iran through mediators and that indirect backchannel talks are underway raised hopes the conflict may not escalate further.

In a note, Moody's Analytics, an arm of rating agency Moody's, said Monday that India's GDP may drop by nearly 4 percent from its baseline trajectory if the Iran war continues for long and energy supplies remain crippled.

In the first signs of the impact of the U.S.-Iran war on the domestic economy, a survey showed India's private sector recorded its slowest expansion in more than three years in March.

The benchmark BSE Sensex ended the session up 1,372.06 points, or 1.89 percent, at 74,068.45 after hitting a high of 74,489.39 earlier.

The broader NSE Nifty index hit an intraday high of 23,057.30 before closing up 399.75 points, or 1.78 percent, at 22,912.40.

The BSE mid-cap and small-cap indexes jumped 2.5 percent and 2.2 percent, respectively.

The market breadth was strong on the BSE, with 2,963 shares rising while 1,299 shares declined and 169 shares closed unchanged.

Among the top gainers, Bajaj Finance, Asian Paints, Eternal, IndiGo and Larsen & Toubro soared around 5 percent each while HDFC Bank, Kotak Mahindra Bank, Adani Ports, Tech Mahindra and UltraTech Cement rallied 3-4 percent.