(Corrects headline and story to say Sensex rose nearly 1 percent)
MUMBAI (Reuters) - The BSE Sensex rose nearly 1 percent on Thursday on hopes Prime Minister Narendra Modi would be able to steer a bill seeking to raise foreign investment limits in the insurance sector through the upper house of parliament, raising optimism about further economic reforms.
Sentiment also turned positive after the International Monetary Fund said India's economy was recovering and its ability to withstand external shocks had improved.
The benchmark BSE Sensex gained 0.95 percent to 28,930.41, while the broader Nifty added 0.87 percent to close at 8,776, with both indexes snapping a three-day losing streak.
(Reporting by Abhishek Vishnoi; Editing by Biju Dwarakanath)
