Stock markets in India bounced back on Tuesday from their lowest levels in around a year after the government said it was considering reconvening parliament to make another attempt to pass the goods and services tax (GST).
Parliament had failed to pass the GST Bill earlier this month after it fell victim to an impasse over allegations of impropriety against Prime Minister Narendra Modi's cabinet and party colleagues.
The broader index rose 0.92 percent to 7,880.70 points, snapping a three-day losing streak after earlier falling as much as 1.8 percent to its lowest since August 12, 2014.
The benchmark BSE Sensex ended up over 290 points or 1.13 percent to 26,032.38 points after earlier falling as much as 1.7 percent to its lowest since August 8, 2014.
The National Stock Exchange (Nifty) closed 61.85 points up to stand at 7,870.85.
Bank stocks bounced back on Tuesday. The ICICI Bank gained five percent, the Axis Bank rose 4.3 percent and the Yes Bank advanced 8.1 percent.
India Bulls Real Estate Ltd and DLF were among the top gainers of Group A with an increase of 19.47 percent and 16.82 percent. The Delta Corp. and Amararaja Batteries Ltd registered increases of 13.15 percent and 9.55 percent respectively.
The top losers of Group A included Sun Asian and Vakrangee with a decrease of 19.98 percent and 10 percent, The Central Bank of India and Gati registered decreases of 9.74 percent and 9.48 percent at the close of trading.
The auto sector ended 230.20 points up at 17,673.84, while the banking sector ended 484.36 points up at 19,726.30. The realty sector ended 78.52 points up at 1,236.88. The Indian currency is up 0.74 percent at Rs 66.15 per dollar.
Volatile global markets got some respite from their latest sharp sell-off on Tuesday as bargain hunters boosted European and most Asian stocks, though China was pummelled again.
With market hopes of stimulus measures from authorities in Beijing still unfulfilled, China's main equity markets slumped a further eight percent overnight, while Japan's Nikkei lost four percent. But the rest of Asia was calmer, gaining 2.1 percent after an initial dip to three-year lows.
Europe fought its way back too, supported by takeover news after Monday's global beating wiped around 450 billion euros (USD 520 billion) off the value of its leading stocks.
