(RTTNews) - Indian shares rebounded from two-month lows on Tuesday as a halt in hostilities between Israel and Iran boosted hopes that peace negotiations could move forward.
Geopolitical tensions eased somewhat, the dollar weakened and Brent crude futures fell below $93 a barrel as Israel and Iran agreed to halt attacks against each other following a series of mutual attacks from Sunday night, which marked the most serious escalation since the ceasefire in April.
U.S. President Donald Trump said that he had warned Israeli Prime Minister Benjamin Netanyahu that if Israel resumed its war with Iran, it could find itself fighting alone.
Trump also said that the final negotiations on a peace deal aimed at achieving a complete solution to the West Asia conflict are currently underway but "ignorance of stupidity" could derail efforts to reach a final agreement.
Investor morale was also boosted by a U.S. federal court ruling that the fee of 1 lakh U.S. dollars for H-1B applications imposed by President Donald Trump was unlawful. The White House is expected to challenge the court order in the appeals court.
The benchmark BSE Sensex ended up 394.50 points, or 0.54 percent, at 73,918.76, snapping a two-day losing streak amid broad-based buying across sectors.
The NSE Nifty index surged 119.10 points, or 0.52 percent, to 23,242.10 after recent volatility, while the BSE mid-cap and small-cap indexes soared 1.2 percent and 1.4 percent, respectively.
The market breadth was strong on the BSE, with 2,796 shares rising while 1,416 shares declined and 186 shares closed unchanged.
Banks and financials topped the gainers list following the Reserve Bank of India's recent measures to boost liquidity and attract foreign inflows.
Bajaj Finance, Axis Bank, ICICI Bank and SBI all rose around 2 percent. Airline Indigo jumped more than 4 percent after a steep fall in crude oil prices in international markets.
On the downside, Bharti Airtel, Eternal, Tech Mahindra, Power Grid Corp, NTPC and Titan Company shares fell 1-2 percent.
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