BSE Sensex looks to end three-session losing streak

MUMBAI (Reuters) - Indian shares rose 1 percent on Tuesday, looking to snap 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.

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.

The broader Nifty was 0.9 percent higher after rising as much as 1 percent earlier in the day.

The Sensex rose 0.93 percent after rising as much as 1.04 percent earlier.

Both the Nifty and Sensex were on track to post their biggest single-day percentage gain since Dec. 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.

(Reporting by Karen Rebelo in Mumbai; Editing by Subhranshu Sahu)