Indian shares jumped nearly one per cent on Tuesday, rebounding from their lowest levels in a year, as markets were seen as oversold, while the sentiment was also helped after the government said it would make another attempt to pass the goods and services tax.
A strong opening in European markets and buying at lower levels helped the markets recover from lower levels.
The Union Minister, M Venkaiah Naidu, today said that the Government may convene second part of the Monsoon Session to pass key legislations after talking to all the political parties.
He said that the Government is going to Parliament with an open mind and amendments in GST Bill, if any, can be approved on the floor of the House.
The 30-share BSE index Sensex ended higher by 290.82 points or 1.13 per cent at 26,032.38, after falling by nearly 450 points to 25,298 earlier in the day.
Similarly, the NSE index Nifty was up 71.70 points or 0.92 per cent at 7,880.70 after earlier declining to 7,667.
Barring IT, all other BSE sectoral indices ended in the green. Among them, realty index was the star-performer and was up 6.78 per cent, followed by metal 4.04 per cent, oil & gas 3.73 per cent and PSU 2.54 per cent, while IT index was down 0.48 per cent.
Top five Sensex gainers were VEDL (7.73%), Tata Motors (+6.3%), Coal India (+5.23%), ICICI Bank (+5.06%) and Axis Bank (+4.18%), while the major losers were HDFC (-1.82%), Maruti (-1.2%), Infosys (-0.56%), L&T (-0.48%) and TCS (-0.46%).
Global markets showed tentative signs of a respite from the recent blood-letting on Tuesday as bargain hunters helped Asian stocks off three-year lows, though share markets in China, epicentre of the rout, suffered another big sell-off.
European shares rose on Tuesday to recover some poise after a sharp sell-off in the previous day that saw around 450 billion euros ($520.70 billion) wiped off the value of leading stocks.
Earlier, both the Sensex and the Nifty plunged nearly 1.5 per cent to hit their lowest in around a year on concerns that foreign investors would pare some of their holdings as China's equity markets continued to tumble.
Chinese stocks sank again, despite a rebound in markets elsewhere in Asia, as investors despaired at the lack of policy action from Beijing in response to recent data suggesting the downturn in the world's second-largest economy is deepening.
Trading was highly volatile due to rollover of positions in the futures & options (F&O) segment from the near month August series to September The near month derivatives is set to expire on Thursday.
A report by SMC Investments and Advisors earlier said: "Markets in Asia opened sharply lower today, but later bounced back from day's low, a factor that may support domestic stocks. Overnight, the Dow Jones industrial average briefly slumped more than 1,000 points - it's most dramatic intra-day trading range ever. A leading economic index for China remained positive in July, the latest survey from the Conference Board showed, advancing 0.9 per cent. That follows the downwardly revised 0.6 per cent increase in June (originally up 1.0 per cent) and the 1.1 per cent jump in May. The coincident jumped 1.1 per cent, up sharply from the downwardly revised 0.2 per cent increase in the previous month (originally up 0.4 per cent)."