Zee Media Bureau
India`s stock markets 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 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.
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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 Aug. 12, 2014.
The benchmark BSE Sensex ended up 1.13 percent to 26,032.38 points after earlier falling as much as 1.7 percent to its lowest since Aug. 8, 2014.
Bank stocks bounced back to prop the Bank Nifty sub index up 2.27 percent. ICICI Bank gained 5 percent, Axis Bank rose 4.3 percent and Yes Bank advanced 8.1 percent.
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.
As investors dipped their toes back into still choppy waters, the dollar and beaten-down oil prices rose for the first time in five days, safe-haven bonds edged down and defensive positions in the yen and euro were cut.
With market hopes of stimulus measures from authorities in Beijing still unfulfilled, China`s main equity markets slumped a further 8 percent overnight while Japan`s Nikkei lost 4 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.
The pan-European FTSEurofirst 300 index rose 2.7 percent, recouping around half of the 5 percent-plus it lost the previous day as London, Paris and Frankfurt bounced 2.4-2.9 percent.
With Agency Inputs
