India’s BSE Sensex closed about 1% higher at 79,273 on Tuesday, its strongest level in more than six weeks, supported by earnings optimism and prospects of renewed US-Iran talks. Washington signaled cautious optimism that peace discussions would be held in Pakistan this week, and reports indicated that Tehran was weighing participation as a ceasefire deadline approaches.
Heavyweight financials led the gains after the Reserve Bank of India partially reversed curbs introduced in early April, when the rupee hit record lows, easing worries that tighter hedging limits could dampen banking activity. ICICI Bank climbed 2.4% following robust quarterly results released over the weekend and a broker upgrade, while HDFC Bank also advanced roughly 2%. FMCG shares were buoyed by stronger-than-expected fourth-quarter earnings from Nestle India.
